The role of product returns on the relationship between green capabilities and close-loop supply chain

Purpose Objective: The study aims to examine the mediating effects of product returns on the relationship between green capabilities and closed-loop supply chain adoption. Methodology: The collected data included 203 responses. Purposive sampling technique was used. This study targets the supply chain professionals of Karachi, Pakistan. Findings: The results showed that integration capability has significantly positive impact on adoption of CLSC activities (and product returns. In the similar context, recovery capability has significantly positive impact on adoption of CLSC activities and product returns whereby, product returns significantly and positively related to adoption of CLSC. However, manufacturing capability has significantly positive impact on adoption of CLSC activities and manufacturing capability has negatively insignificant impact on product returns. Implications: The findings of this research show that the volume of product return does not have mediating effects on the association between the capability of manufacturing and the adoption of CLSC. This shows that the capability of manufacturing has direct impact on the adoption of CLSC. Manufacturers do not have any incentives to make investment in the capabilities of manufacturing to manage the returns of products that can motivate to adopt CLSC. There is a need for firms too to develop associations with the institutions, NGO and also with their market competitors in order to manage the lifecycles of their products in a CLSC.