A study of barriers to the implementation of reverse logistics affecting the performance of small and medium-sized enterprises in Vietnam
DOI:
https://doi.org/10.31305/rrijm.2025.v10.n12.014Keywords:
Reverse Logistics, Firm Performance, Reverse Logistics Barriers, SMEs, IPMA, PLS-SEMAbstract
Reverse logistics (RL) has emerged as a vital strategy for enhancing sustainability and operational efficiency, particularly in small and medium-sized enterprises (SMEs). Despite its benefits, SMEs in emerging economies such as Vietnam often face significant barriers that hinder the effective adoption of RL practices, ultimately affecting financial and environmental performance. Understanding these barriers is essential for designing targeted interventions and promoting sustainable business practices. This study investigates the impact of six key barrier groups, including Technology & Infrastructure, Financial & Economic, Law & Policy, Market & Competitors, Supply Chain Management, and Professional Quality on the adoption of RL practices and firm performance in Vietnamese SMEs. Data were collected from multiple manufacturing sectors, and the relationships among variables were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) and Importance-Performance Matrix Analysis (IPMA). Twenty hypotheses were formulated to test both direct and indirect effects of these barriers on RL adoption, financial performance, and environmental performance. The results reveal that Financial & Economic, Law & Policy, Market & Competitors, Supply Chain Management, and Technology & Infrastructure barriers significantly reduce RL adoption, which in turn lowers financial and environmental outcomes. Professional Quality, however, was not a significant barrier due to the stable and accessible nature of RL knowledge in Vietnam. Moreover, RL adoption positively contributes to both financial and environmental performance, demonstrating its strategic value for SMEs. IPMA results further prioritize Law & Policy, Market & Competitors, and Financial & Economic barriers as critical areas for intervention. Overall, the study extends the RL barrier framework in emerging economies and provides practical insights for SMEs and policymakers to overcome implementation challenges, thereby enhancing sustainability and firm performance.
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