Improving reverse supply chain performance: The role of supply chain leadership and governance mechanisms

Recently, a growing interest has been devoted to the role of buying firms in promoting sustainability across supply chains. However, relatively little attention has been given to how the behaviour of a buying firm affects the performance of reverse supply chains. Within this context, this paper investigates the role of Supply Chain Leadership styles on suppliers' performance dimensions related to reverse product flows. Furthermore, the mediating role of two governance mechanisms (namely trust and legal-legitimate power) on this relationship is examined. This study employs structural equation modelling to analyse data collected from 190 manufacturing companies in Malaysia. The paper concludes that transformational and transactional leaderships are significant and positive contributors to suppliers’ reverse supply chain performance; trust and power significantly mediate these relationships.