The impact of institutional pressures, top managers' posture and reverse logistics on performance-Evidence from China

Based on institutional theory, this study investigates the effects of three institutional pressures on top managers' posture towards reverse logistics implementation: government, customer, and competitor pressures. Survey data from 209 manufacturers of Pearl River Delta (PRD) in China reveal that institutional pressures have a statistically significant positive influence on top managers' posture towards reverse logistics implementation. In addition, while top managers' posture is strongly related to product recovery, it is not related to product return. We also find that product recovery has a significant positive effect on a firm's economic and environmental performance. Conversely, the results suggest that product return negatively affects a firm's economic performance and has no effect on environmental performance. We highlight the managerial implications.

► The impacts of institution pressures on top managers' posture on reverse logistics are examined. ► The relationship between top managers' posture and reverse logistics is examined. ► The relationship between reverse logistics and a firm's performance is examined. ► Managerial implications are offered based on the empirical results.