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Sustainable performance in SMEs using big data analytics for closed-loop supply chains and reverse omnichannel.

Syed Abdul Rehman Khan¹, Muhammad Sohail Tahir², Adnan Ahmed Sheikh^3,4

¹School of Management and Engineering, Xuzhou University of Technology, Xuzhou, China.

|September 12, 2024

Summary

Big data analytics (BDA) enhances circular economy (CE) dual systems, improving small and medium-sized enterprises

Keywords:

Big data analytics Circular economy Close-loop supply chain Product return knowledge Reverse omnichannel

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Area of Science:

Business and Management
Environmental Science
Information Science

Background:

Circular economy (CE) dual systems, including closed-loop supply chains (CLSC) and reverse omnichannel (ROC), are crucial for sustainable firm performance (SFP) in small and medium-based enterprises (SMEs).
Product return knowledge (PRK) plays a vital role in reinforcing these systems and facilitating active returns within CE.
Existing research has not fully explored the synergistic effects of big data analytics (BDA) on these dual CE systems and their impact on SMEs.

Purpose of the Study:

To examine the advantages of utilizing big data analytics (BDA) on CE dual systems (CLSC and ROC) for enhancing SFP in SMEs.
To investigate how PRK strengthens the network of relationships and facilitates active returns in CE.
To determine if BDA improves product return processes, CLSC operations, and ROC service capabilities.

Main Methods:

Structural Equation Model (SEM) analysis using AMOS v24.
Data collected from a simple random sample of 232 SMEs in Pakistan.
Hypothesis testing to validate the proposed framework on the interplay between BDA, CE dual systems, PRK, and SFP.

Main Results:

Big data analytics (BDA) significantly enhances the efficiency of the circular economy (CE) system.
Closed-loop supply chains (CLSC) are strengthened by the development of product return knowledge (PRK), which improves network performance.
Reverse omnichannel (ROC) offers limited performance benefits unless supported by BDA, while PRK is essential for achieving firm performance objectives.

Conclusions:

Firms must strategically choose between CLSC (requiring operational capabilities) and ROC (requiring service capabilities).
BDA is a key enabler for optimizing CE dual systems and improving SFP.
PRK is indispensable for enhancing a firm's capability to sense, seize, and reconfigure processes, facilitating active returns in CE.