This study aims to analyse the financial impact of reverse logistics practices (RLPs), including reuse, recycling, remanufacturing and disposition, on manufacturing firms in Palestine.
The study employs a quantitative approach, collecting data from 100 Palestinian manufacturing firms through a structured questionnaire, achieving a response rate of 71%. Partial least squares-structural equation modelling (SmartPLS 4.0) was used for data analysis.
The study finds that adopting RLPs enhances the financial performance of manufacturing firms, particularly through reuse, recycling, remanufacturing and disposition. However, Palestinian logistics service companies exhibit lower financial performance when implementing RLPs, highlighting Palestine’s logistical constraints affecting financial viability in developing economies.
Future studies should explore different economic contexts, examine green supply chain integration, blockchain technology and green innovation, and adopt mixed-method approaches while incorporating financial records for greater validity.
The study recommends that firms develop customised strategic plans for RLPs, allocate dedicated resources instead of adapting conventional logistics systems and engage supply chain stakeholders to ensure successful implementation.
The study highlights the role of RLPs in promoting environmental sustainability by reducing waste and conserving natural resources. Widespread adoption of these practices can lead to job creation in recycling and remanufacturing industries while fostering a culture of corporate social responsibility. However, successful implementation requires public awareness campaigns and regulatory frameworks to encourage responsible consumption and waste management behaviours.
This research addresses a gap in the literature on RLP adoption in emerging markets, specifically in Palestine. It provides theoretical contributions by assessing the financial effects of RLPs in contexts with limited logistics infrastructure and technological capabilities. The study also offers practical insights for managers on optimising implementation strategies.
