The Influence of Process Innovation and Operational Performance on the Relationship between Adoption of Reverse Logistics and Competitive Advantage: A Critical Review of Literature

Abstract

This paper examines the relationship between process innovation, operationalperformance, reverse logistics adoption and competitive advantage. According to theresource advantage theory of competition organizations gain competitive advantagethrough marshaling comparative advantage in resources. Empirical studies have shownthat marshaling comparative advantage through the adoption of reverse logistics can leadto sustainable competitive advantage for firms. However, these studies have notdemonstrated how various strategies to the adoption of reverse logistics impact on a firm’ssustainable competitive creating capabilities. Further studies have shown that processinnovations have the potential to reposition organizations’ current assets in a manner thatallows them to gain new capabilities that enable the achievement of higher operationalefficiency and ultimately generate sustainability creating processes in the short and longrun.
Studies have also revealed that firms gain comparative advantage when resources intheir control facilitate them to generate and implement strategies that result in highlyefficient and effective operations.   Keywords: Reverse Logistics, Competitiv