Key capabilities for closed-loop supply chain: Empirical evidence from manufacturing firms

Abstract

The objective of this paper is to explore the capabilities to implement closed-loop supply chain (CLSC). In this regard, a theoretical model grounded in natural resource-based view is proposed, which depicts inter-relationships among the capabilities and CLSC. The model is tested using survey data from Indian manufacturing firms by partial least squares (PLS) approach. The findings show information technology and organizational learning as important lower-order capabilities, and internal integration, demand management and product design as significant higher-order capabilities for CLSC implementation. To the best of authors' knowledge, this is the first study to examine key capabilities for CLSC. The study contributes to CLSC literature by providing an integrative framework, classifying capabilities into lower-order capabilities and higher-order capabilities, and empirically examining the key capabilities for CLSC. The findings provide managers with insights about the hierarchical levels of capabilities for CLSC, which will help them to accordingly deploy the appropriate resources to build capabilities for CLSC.