Research Paper

The role of environment proactivity and integration for closed-loop supply chain: a strategy-structure-capabilities-performance perspective

  • By Kishore Kumar Gangwani
    Assistant Professor
    Co-Authors
    Manjot Singh Bhatia, LM Thapar School Of Management, Thapar Institute Of Engineering And Technology, India
    Saurabh Kumar, Indian Institute Of Management Indore, Indore, India
    Journal : The International Journal of Logistics Management
    Publisher : Emerald Group Publishing

Article citation: Bhatia, M. S., Kumar, S., & Gangwani, K. K. (2025). The role of environment proactivity and integration for closed-loop supply chain: a strategy-structure-capabilities-performance perspective. The International Journal of Logistics Management.

Abstract

Purpose
This study aims to examine the process through which an organization’s proactive environmental strategy affects environmental and market performance. Through the lens of the “strategy-structure-capabilities-performance” (SSCP) framework, the study proposes a theoretical model emphasizing the role of environment proactivity (ENPR) and integration for closed-loop supply chain (CLSC) implementation and subsequently improving performance outcomes.

Design/methodology/approach
The proposed model is tested using survey data from 119 USA manufacturing firms by structural equation modeling.

Findings
The analysis shows a significant positive effect of ENPR on internal integration. Further, supplier integration mediates between internal integration and CLSC. Interestingly, mediation of customer integration between internal integration and CLSC is not validated. Finally, CLSC positively affects environmental and market performance.

Originality/value
The results guide firms towards CLSC implementation through demonstrating ENPR. The study highlights the importance of internal and supplier integration for CLSC implementation and transitioning towards a circular economy.