Heliyon (Aug 2024)
Sustainable performance in SMEs using big data analytics for closed-loop supply chains and reverse omnichannel
Abstract
The study aims to examine the advantages of utilizing big data analytics (BDA) on circular economy (CE) dual systems, which are closed-loop supply chain (CLSC) and the reverse omnichannel (ROC), aiming to enhance sustainable firm performance (SFP) of the small and medium based enterprises (SMEs). The product return knowledge (PRK) can reinforce the proposed network of relationships and facilitate the approach of active returns in CE. Using the structural equation model (SEM) in AMOS v24, the researchers examined the hypotheses using data from a simple random sample of 232 SMEs in Pakistan. Though ROC solutions provide rare performance-related benefits, however, BDA makes the CE system more efficient. CLSC gets strengthened when the PRK is developed. The improved PRK facilitates the CLSC network and enhances its performance. This study adopts a novel approach to studying CE by considering the dual system of CE in the forms of CLSC and ROC. The research investigates whether the BDA facilitates improved product return processes by improving CLSC operations and achieving service capabilities using ROC. Finally, the proposed framework is the first to investigate the benefits evolving from the PRK, which enhance the capability to sense, seize, and reconfigure the process and facilitate the approach of active return in CE. The findings suggest that firms must decide carefully between CLSC and ROC. Choosing CLSC requires higher operational capabilities, whereas deciding on ROC requires higher service capabilities. Lastly, PRK is necessary for achieving the firm's performance objectives.
