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

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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… Click to show full 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: chain; biodiesel; chain practices; closed loop; supply chain

Journal Title: Review of Managerial Science
Year Published: 2019

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