Influence of Recovery Rate on Reverse Logistics Performance Based on Structural Equation Model

Abstract

This paper studied the influencing factors of enterprise reverse logistics performance. We focus on how the returned product recovery rate affects company overall reverse logistics performance. Company Finance Performance, Social Benefit and Environment Concerns are adopted to describe its reverse logistics performance. Meanwhile, product recovery rate is indicated by Recycle Network Condition as well as Recycle Technology. A questionnaire survey was done in major manufacturing industry and retailing industry enterprises. By utilizing structural equation model methodology, AMOS 7 software is applied to verify the proposed conceptual model and do the statistics testing for the collected data. The model fitting result shows that product recycle network condition is significantly related to company finance performance, social benefit and environment concerns. Additionally, product recycle technology is also proved to have positive relationship to the same reverse logistics performance index. However, the hypothesis about the positive relationship between product recycle technology and the recycle network condition has not been accepted.