Examining the role of dynamic remanufacturing capability on supply chain resilience in circular economy

Worldwide, facing increasing resources pressure, more and more manufacturing firms aim to circular economy (CE), which is a system characterized by the application of remanufacturing principles and adoption of sustainable manufacturing practices. The purpose of this paper is to investigate the function of remanufacturing capability in influencing supply chain resilience in supply chain networks under the moderating effects of both flexible orientation and control orientation.

Data were gathered through a survey performed online in South Africa, and 150 participants completed the survey. Participants were mainly industry professionals holding senior administrative positions.

Results indicate that market factors, management factors and technical factors positively influence dynamic remanufacturing capability (DRC). More specifically, on one hand, market factors strongly influence DRC, whereas, on the other hand, both management and technical factors influence at lower level DRC. DRC has a positive influence on supply chain resilience. Flexible orientation is found to positively moderate the effect of DRC on supply chain resilience, whereas control orientation does not exert any moderating effect on DRC and supply chain resilience.

This is one of the first studies that explore research gaps between current vs desired remanufacturing capability requirements to achieve sustainability goals in CE.