Circular economy-based reverse logistics: Dynamic interplay between drivers, barriers, and firm performance

Abstract

Reverse logistics has gained significant attention for its role in enhancing both financial and sustainability performance. However, limited research has explored its mediating role between key drivers, barriers, and firm performance. This study examines these relationships using a circular-economy-based reverse logistics framework. Using partial least squares modeling, we analyzed data from 253 respondents across various industries in Vietnam. The findings reveal that constraints, including top-management barriers, inadequate information systems, and supply chain inefficiencies, hinder circular-economy-based reverse logistics.

In contrast, factors such as financial resources, competitiveness, regulatory incentives, and social responsibility serve as key enablers. Moreover, circular-economy-based reverse logistics directly enhances both sustainability and economic innovation through practices such as recovery and product returns. Notably, drivers and barriers influence firm performance indirectly through circular-economy-based reverse logistics, offering practical insights for businesses and policymakers seeking to optimize reverse logistics strategies and maximize financial and sustainability outcomes.