**1. Introduction**

In the recent decades, environmental considerations, cost reduction, and consumer pressure have become significant concerns worldwide [1] with the intensifying calls for environmental concerns, namely depletion of resources, landfills exhaustion in many countries, and several legislative measures by governments to take back the end of life products, issues like reverse logistics, product recovery, remanufacturing, and reusing have come across as significant areas for development [2]. For this paper, the discussion is around reverse supply chain (RSC).

Rural development is a very key driver in the bid to achieve sustainable development. Development of economic activities in rural areas plays a significant role not just in South Africa, but every country. This cannot be achieved without the preservation of the environment. Sustainable rural development is a mixed developmental concept which

is created by an integral merging of sustainable and rural developments and represents a particular combination of their basic elements. In this study the basic elements is reverse supply chain, as reverse supply chain will drive the rural development in South Africa as the concept of sustainable rural development includes social and economic dimensions in the South African context. The economic dimension of rural development refers to the economic growth through the achievement of vitality, efficiency and effectiveness of the economic activity in the rural areas. The social dimension of rural development refers to the social progress through the improvement of the human potential and the creation of equal opportunities for a living in rural areas.

The reverse SC is known as reverse logistics (RL) in most of the literature; however, reverse SC and RL are used interchangeably in this paper. However, logistics is central to the supply chain. The reverse SC is an emerging business practice that supports sustainable production and consumption. Further, the importance of RSC has gained prominence in recent years, as there are high returns by customers due to the expansion of product choices and shorter product life cycles [3].

Reverse Supply Chain (RSC) is the collaborative responsibility of both the producers and consumers to reduce the waste by recycling, remanufacture, reusing, and adequately to dispose unacceptable products or items to enhance environmental sustainability [4, 5]. Globalisation has driven companies to become more flexible and productive by rapidly developing new products and reducing delivery times to meet customers' needs resulting in supply chains collaborating entirely with supply chain partners to reach short delivery times and shorten product release time. *Collaboration* is a term primarily used by the forward supply chain organisation. Collaboration works in conjunction with different parties to complete tasks and accomplishes mutual goals. It is a mechanism by which several individuals or organisations work collectively. It includes just over the unification of mutual goals, as in cooperative organisations, and a mutual willingness to fulfil a common aim [6].

One of the most often discussed terms in supply chain management has been cooperation in the forward supply chain. Over the past decades, organisations have seen the need to look beyond their organisation for opportunities to work with partners to ensure that the supply chain is efficient and responsive to dynamic market needs [6]. There is little or no research in collaboration in the reverse supply chain since most collaborative studies have been on the forward supply chain.

Supply chain cooperation is a powerful tool for achieving productive and receptive supply chain management (SCM) [7, 8]. Therefore, extended to the reverse supply chain since the literature revealed that the reverse supply chain is inefficient and unpredictable. Reverse supply chain collaboration is a relationship between partners in the reverse supply chain that aim to share information among themselves to jointly improve the performance of the reverse supply chain and improve the profit margin by redesigning business practices [9].

Supply chain collaboration (SCC) has different definitions. This study considers several definitions by authors such as [8, 10, 11]. The definition from Simatupang and Sridharan [12] defined SCC as "two or more independent companies work jointly to plan and execute supply chain operations with greater success than when acting isolation." SCC can take on two different relationships: vertical collaboration, the relationship between a manufacturer and a client, or horizontal collaboration, which is the relationship between companies at the same echelon of a supply chain, including between rivals [13].

This study adopts the approach taken by Barratt [14] and Lafferty and van Fossen [15] to classify Supply Chain Collaboration since it does not cover the same dyadic

*Do the Collaboration Dimensions Pay in Manufacturing Reverse Supply Chain? An Empirical… DOI: http://dx.doi.org/10.5772/intechopen.103068*

associations among supply chain partners that fit this aim study. This study concentrates on the organisation's vertical collaboration with its partners, i.e., suppliers, organisations, and customers.

Collaboration in supply chain if well thought out, could be central to successful business operations [16] and brings about competitive advantage [17]. It has become a buzzword in the business sphere in recent times [18]. Nonetheless, a survey was conducted, which revealed that 35 per cent of collaborative initiatives were moderately successful [19]. In practice, however, studies have shown that most attempts to introduce cooperation do not meet the participant's standards and end in failure [20]. Literature has shown that a collaboration record of accomplishment of execution finds all management strategies in the supply chain unsatisfactory [21]. In the light of this awareness, collaboration must be effective in the RSC.

Successfully implementing collaboration in the RSC and recognising the causes of collaboration failure is the product of a limited understanding of the elements required to implement the company's collaborative initiatives [22, 23]. Ho et al. [24] developed steps and processes (as shown below in **Table 1**) necessary to implement and strengthen collaboration for the RSC. These steps and processes are necessary to implement vital collaborative activities effectively in the reverse supply chain. Organisations need to collaborate moving forward as a necessary activity [25, 26], as well as including the prerequisite activities as a backdrop to building the capacity and competence to collaborate in main activities and to help and enhance activities [27] (**Table 1**).

Hence for reverse supply chain to achieve its full potential of been included in the reverse supply chain process as seen in the forward supply chain. It is important that, collaboration is the centre of the reverse supply chain process. Furthermore, studies have shown that there is little, or no research carried out in the reverse supply chain literature, this poses a significant issue in the reverse supply chain domain as there is little or no research to back findings in collaboration as it pertains to reverse supply chain. Lastly, to the best of the researcher knowledge, this is the first of a kind where collaboration dimensions will be empirically analysed in the reverse supply chain domain.

#### **1.1 Benefits of collaboration in reverse supply chain**

#### *1.1.1 Improving performance operationally*

SCC improves the performance of the companies [28, 29]. Through working closely, organisations boost the outcomes of working with supply chain partners [30].


#### **Table 1.** *Antecedents and collaboration dimensions.*

The benefits of working closely with supply chain stakeholders consist of a higher responsiveness level and changes in service levels from their joint supply chain projects [22, 28, 29]. The reverse supply chain's performance came into question because of the uncertainty in the return of goods, the volume of return goods, and other instances.

#### *1.1.2 Increasing service quality*

Organisational performance is dependent on exact and timely SC information [8, 23]. Organisations expect a better degree of service level development from the supply chain partnership initiatives. An added benefit of supply chain cooperation is that it contributes to supply chain cost reductions often associated with intercompany transactions, output and inventory [29].

#### *1.1.3 Improving logistical performance*

Several investigations have shown that an advanced level of collaboration in the supply chain can improve a firm's performance [31], in logistics activities [32], which could lead to the future to more collaborative actions because of the success of collaboration [33].

#### *1.1.4 Mitigating risks*

In addition, collaboration in the supply chains could also reduce gaming and rationing. It is one of the bullwhip effect's primary triggers [34]. Additional benefits may well be a higher level of cooperation, which can be attributed to removing the bullwhip effect, reducing inventory levels, the efficient use of transport capacity, and risk mitigation [22].

Collaborative strategies such as information sharing, reward coordination, and decision synchronisation explored in several dimensions [35–37]. Simatupang and Sridharan [17] reported that partnership dimensions could be prioritised using several measures, such as mutual objectives, information sharing and reward alignment, among many. When organisations work together, they manage their inventory and ordering policies effectively [22]. In a bid to achieve a solution where everyone benefits, collaboration can be applied to pricing strategies [38]. Reducing supply chain costs through a decentralised supply chain approach is one of many reasons why businesses are partnering with their suppliers.

#### *1.1.5 Information sharing*

The sharing of information is one of the leading collaborative activities; it is described as necessary [39], foundation [40] and a fundamental prerequisite [23]. Any relationship must have a flow of information [39]. Information sharing decides the direction and extent of the flow of material from product returns and end-user repairs. Therefore, the flow of information involves transactional data exchange and customer feedback on product research and development problems, which is critical for the movement of information flowing from customers to manufacturers through the suppliers.

The sharing of information, as said by Hudnurkar et al. [40], is the glue that binds the relationships between partners, allowing the RSC to be more reactive in addressing competitive advantage issues. Moreover, as supply chain partners are increasingly

*Do the Collaboration Dimensions Pay in Manufacturing Reverse Supply Chain? An Empirical… DOI: http://dx.doi.org/10.5772/intechopen.103068*

growing and practising across various parts of the globe, organisations must share accurate and factual time information among partner organisations to achieve common goals. Additionally, this will lead to proper handling among supply chain partners of returned goods.

Crook et al. [41] advocated that small firms must collaborate and share information. They can attain advantages from what accomplished in exchanging information when adopting an adversarial relationship. Nonetheless, companies are worried about sharing information that is so important within their supply chain, as there is worry about the leakage of important information such as demand projections, adoption of emerging technology and new product innovations, and returning to their rivals for goods. Consequently, the interaction between the collaborative RSC should help lessen the likelihood of information leakage. Trust between SC associates plays a vital role in sharing information via the supply chain [42].

#### *1.1.6 Goal congruence*

The combining of supply chains with individual preferences has recently been considered [43, 44]. Goal congruence is the level at which SC participants are satisfied with supply chain targets [40, 45]. The goal congruence consists of the definition of the roles and responsibilities of an individual partner, the establishment of goals, specific targets, performance measures, IT standardisation, mutual knowledge formalisation and the joint implementation of the strategy [26].

True partnership is defined as one of the target congruence responsibilities [46] and requires an understanding of the needs and competencies of each member of the RSC to ensure to focus the efforts of individuals working in the supply chain. As a result of specific strategic goals. Moreover, the value of the organisation's strategic direction and vision raised concerns, as reported by Lambert et al. [47]. Lambert et al. [47] suggested that RSC members buy into the RSC vision and critical business processes. Collaborative relationships should be a key focus for achieving changes and incentives through industries [48]. Lastly, the desires and requirements of the RSC members must consider the RSC strategies and operations to best benefit each member, cash flow and return on investment [49].

#### *1.1.7 Decision synchronisation*

Decision synchronisation was conceptualised by Simatupang and Sridharan [12], where the researchers described it as "the extent to which the chain members are able to coordinate critical decisions at planning and execution levels for optimising supply chain profitability. It occurs when the forward and reverse chain partners orchestrate supply chain decisions and combine RSC with operations that create better RSC benefits [12]. Planning decisions are crucial to deciding the most efficient and effective ways of managing the enterprise's resources to achieve the targets set. These decisions are as follows: strategy planning, demand management, production planning and scheduling, procurement promise delivery and distribution management [50]. Joint planning aligns collaborative partners and makes organisational decisions.

#### *1.1.8 Incentive alignment*

This collaborative concept refers to cost-sharing, risk, and the benefits of the supply chain among partners [51]. The alignment of incentives involves assessing the cost, risks, benefits, and designing incentives. Successful SCC requires each member's ability to share profits and losses equally, and the collaborative result must be quantifiable [52]. Incentive alignment entails a careful interpretation of gain-sharing arrangements, ensuring profits are proportionate to risk and investment [53].

#### *1.1.9 Resource sharing*

Resource planning is the utilisation of the supply chain members' abilities and assets and the supply chain members investing in the capabilities and assets. Physical resources such as manufacturing equipment, return facilities, and technologies are those assets in which participants of the reverse supply chain need to invest [54]. Activities such as vendor-managed inventory (VMI) allow suppliers to take stocklevel data through electronic data interchange (EDI) and take the required top-up action in sectors such as retail [55].

#### *1.1.10 Collaborative communication*

This process is the process of communication and transmission of messages between SC partners about the duration, direction, mode, and strategy of control. Two-way communication is usually an indicator of close inter-organisational relationships [56, 57]. This research examines communication patterns from the mechanistic perspective of communication theory. They fit with the term 'collaborative communication strategy,' which refers to the main communication attributes, including frequency extent of bidirectional flows, informal modes and indirect content.

### *1.1.11 Joint knowledge creation*

SC partners can develop improved market knowledge and response and the competitive environment through working together [58]. The two kinds of knowledge creation activities are knowledge exploration (searching and acquiring new and essential knowledge) and knowledge exploitation (integrating and applying relevant knowledge) [59]. Capturing, exchanging, and assimilating knowledge (e.g., process, technology, or market knowledge) among supply chain partners enables innovation and the supply chain to be competitive in the long term [54].

#### **1.2 Reverse supply chain and sustainable development goals**

The review of literature reveals that there has been a lack of study that comprehensively discussed issues in relation to reverse supply chain and cover the market, workplace, environment, and society. These areas are found within the 17 UN Sustainable Development Goal (SDG). The integration of RSCM practices into the SDG will enable entrepreneurs to develop an advanced and complex reverse supply chain management which could lead to a more efficient and ethical reverse supply chain. It is well to note that the goals of sustainable development (SD) have been designed to interact with organisations and stimulate economic effects [60]. While the SDGs do represent a different approach, their potential for transforming the dominant governance approaches to sustainability remains an open question. Thus, global collective action does not end when decisions are reached, but these decisions introduce new practices in a complex political process that can bring in new actors, new ideas, and new action for sustainability in rural developments [61]. It seems,

*Do the Collaboration Dimensions Pay in Manufacturing Reverse Supply Chain? An Empirical… DOI: http://dx.doi.org/10.5772/intechopen.103068*

therefore, that the role of RSCM may be decisive in the successful implementation of SDGs in rural development, if development goals are understood as a process in which all components interact with each other [62]. In a similar vein, [63] emphasise the key role of the links that co- create supply chains are embedded within the SDGs. In turn, Russell et al. [64] suggests that SDGs have undoubtedly been successful in broadening the awareness of entities co- creating supply chains, yet their implementation in the reverse supply chain may be problematic due to their very wide scope, hence the need for collaboration among all stakeholders to try to narrow the scope. It should therefore be emphasised that due to the complexity of SDGs, management decision makers may encounter many barriers and limitations at the stage of implementation of objectives in supply chains, this can be eliminated if there is adequate collaboration among the stakeholders in the reverse supply chain, one of the challenges faced is that everyone in the supply chain want to work independently forgetting that they are all interlinked. This situation is influenced by the fact that the development of an integrated supply chain management system aligned with the SDGs is a highly complicated undertaking and requires significant involvement, thus bringing about collaboration in this process of these to achieve the goals to attain the SDG goals.

### **2. Research design and methodology**

According to Denzin and Lincoln [65], paradigms are a broad framework of perceptions, beliefs, and feelings with which theories and practice operate. For Guba and Lincoln [66] research philosophies are the set of feelings about how the world works (ontology) and how it should be understood (epistemology) and studied (methodology). Whereas ontology raises questions about the nature and form of reality to be known, epistemology raises questions about the nature of the Knower (researcher) relationship and what can be known (the problem under investigation). Finally, methodology refers to general principles that underline how we investigate the social world and demonstrate that the knowledge generated is valid [67–69].

According to Guba and Lincoln [66], positivism, post positivism, critical theory and constructivism or interpretivism are the four schools of thoughts that underline the significant paradigms that structure social science research. For this paper, a positivism paradigm was selected, this approach was selected based on the following points. Quantitative research was adopted for this study, the criterion for selecting is as follow, to test the following collaboration strategies, more extensive and randomly selected respondents, numbers and statistics, Single reality; Objectivity is critical (precise measurements using validated data-collection instruments), the researcher cannot influence the participants. The characteristics of the participants are hidden intentionally from the researcher. The scientific method is confirmatory. A survey research approach was selected to use for this study; this was selected for the following reason: The survey approach is associated with the research using positivist quantitative methodologies [70]. Since a large amount of data is being collected using the survey approach, the findings are generalised to the entire population. The study examines collaboration strategies and confirms them to be used for a confirmatory analysis within the South African manufacturing industry, which involves collecting data from many participants, especially when using structural equation modelling (SEM) technique in data analysis, employing another research approach will be costly and time-consuming [71]. The data was collected using the google forms survey; the following reasons were behind the use such as data can be collected from many

participants simultaneously in a quick, easy, efficient and economical way compared with other methods such as interviews [72–74], It is designed and administrated.

For example, interviews usually require much administrative skills [69], Higher privacy of respondents because issues such as anonymity and confidentiality were dealt with in the cover letter, collecting the questionnaires at once after being completed will assure a higher response rate [75].

#### **2.1 Research design**

According to Nachmias and Nachmias [76], research design supplies overall guidance and framework for the data collection and analysis of the study. It is critical to link the theory and the empirical data collected to answer the research questions [77]. A choice of a suitable research design will influence the use and type of data collection, sampling techniques, and the budget [71]. Additionally, when designing a study, the researcher should make a sequence of rational decisions about the purpose of the study, location of the study, the investigation type, role of the researcher, time horizon and the level of data analysis [75]. Before going ahead to the data collection process, the sampling technique is considered a critical concern to the research to be the targeted population and eliminate the bias in the data collection methods and thus generalise the results [76, 77]. According to Tharinger et al. [78], there are four critical issues to be considered when designing the sample as follows; (1) the choice of probability or non-probability sample technique; (2) the sample frame; (3) the size of the sample; (4) the response rate. The choice of probability or non-probability sample technique selected for this study was the non-probability sampling technique, the convenience sampling method was selected for this study, as the convenience sampling methods allow the researcher to select the sample subjects from the targeted population based on who is willing and easily accessible to be recruited and included in the research. This method is the least expensive, least time-consuming among all other techniques. Convenience sampling method is the most used in behavioural and social science studies. The justification for the selection of convenience sampling is as follows; it was not feasible to access data to allow random sampling to take place, as well as time and budget constraints led to a decision to employ the non-random approach with the potential to significantly collect the sample sizes needed for the analysis. This research employed a convenience sampling technique in collecting data that assumes a homogeneous population, and thus, generalisation of results to the entire population should be made with caution. The research must specify the sample size within the targeted population. According to Zikmund [72], using a large sample within the study cannot guarantee precision and thus will waste time and money.

On the contrary, significantly, when statistical data analysis such as SEM is required, using a small size will lower the results accuracy [71]. Therefore, the sample size was determined based on the rules of thumb for using structural equation modelling within AMOS. According to Roscoe [79], the following rules of thumb should be considered when considering the sample size: Sample size >30 and < 500 are appropriate for most research; in multivariate research (e.g., SEM), the required sample size should exceed by several times (preferably ten times) the number of variables within the proposed framework or study. Similarly, Kline [80] suggested that a sample of 200 or larger are appropriate for a complicated path model. In contrast, a sample size varies between 50 and 1000, of which 50 as very poor and 1000 as excellent.

*Do the Collaboration Dimensions Pay in Manufacturing Reverse Supply Chain? An Empirical… DOI: http://dx.doi.org/10.5772/intechopen.103068*
