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Effects of supply chain practices, integration and closed-loop supply chain activities on cost-containment of biodiesel

Author

Listed:
  • Suhaiza Zailani

    (University of Malaya (UM))

  • Mohammad Iranmanesh

    (Universiti Sains Malaysia (USM))

  • Behzad Foroughi

    (Universiti Sains Malaysia (USM))

  • Kwangyong Kim

    (Korean Standards Association)

  • Sunghyup Sean Hyun

    (Hanyang University)

Abstract

Recent research has pointed out that non-technical problems, rather than technical problems, are mainly responsible for the obstacles facing the development of the biodiesel industry. The present study focused on one such important non-technical problem: that of supply chain practices. More specifically, the aim of this study is to investigate the effect of supply chain practices on supply chain integration and closed-loop supply chain activities, and consequently, on the cost-containment of biodiesel producers. Data were gathered through a survey of 108 biodiesel producers and were analysed using the partial least squares technique. The results show that all three supply chain practices have a significant effect on supply chain integration and closed-loop supply chain activities and lead to cost-containment of biodiesel. The findings are useful for managers of biodiesel companies who seek to reduce the cost of biodiesel production and to position it as a feasible alternative to fossil fuels by adopting closed-loop supply chain activities and integrating the supply chain.

Suggested Citation

  • Suhaiza Zailani & Mohammad Iranmanesh & Behzad Foroughi & Kwangyong Kim & Sunghyup Sean Hyun, 2020. "Effects of supply chain practices, integration and closed-loop supply chain activities on cost-containment of biodiesel," Review of Managerial Science, Springer, vol. 14(6), pages 1299-1319, December.
    • Handle: RePEc:spr:rvmgts:v:14:y:2020:i:6:d:10.1007_s11846-019-00332-9
    DOI: 10.1007/s11846-019-00332-9
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