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

Suhaiza Zailani (), Mohammad Iranmanesh (), Behzad Foroughi (), Kwangyong Kim () and Sunghyup Sean Hyun ()
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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

Review of Managerial Science, 2020, vol. 14, issue 6, No 4, 1299-1319

Abstract: 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.

Keywords: Biodiesel; Cost-containment; Practices; Integration; Closed-loop supply chain; 62G08 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1007/s11846-019-00332-9

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