**Table 4.**

*Model of fit.*

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

along with any supplemental fit index such as Tucker-Lewis's index (TLI), comparative fit index (CFI), Gamma Hat, McDonald's centrality index (Mc), or root mean squared error of approximation (RMSEA).

This fit index will help reduce the possibility of committing a Type I error (the probability of rejecting a null hypothesis when it should be accepted) or a Type II error (the probability of accepting a null hypothesis when it should be rejected [84]. The X<sup>2</sup> divided by the degree of freedom (Df) revealed a good fit of 3 to 5 as noted by Tharinger et al. [78], while the goodness-of-fit (GFI) must be from 0 to 1, as saw by Doloi et al. [85]. Similarly, the CFI met the minimum threshold of at least 0.80 set by Hu and Bentler [84] and a cut-off of 1 as set by Singh [86], while the normed fit index (NFI) can fall within the 0.6 to 1.0 threshold observed in Van Dijk, and Akkermans et al. [87, 88]. The chi-square was 4.0, which makes it a good fit. The GFI, CFI, NFI, RFI and TLI all met the cut-off criteria of >0.90 and > 0.95, respectively. The RSMEA gave a fit of 0.99, which is acceptable, and the SRMR is 0.07. The fit index shows that the following cut-off criteria for all collaboration variables are fit for acceptance into the final structural equation model (**Table 4**).

#### **3.1 Discussion**

This study develops a measurement model which was adapted from earlier studies [87]. Collaboration is a strategy for effective supply chain management [26]. But this has not be the case for reverse supply chain, the findings from this study are consistent with findings from the forward supply chain. Enablers of collaboration such as relationship building and management for implementing collaboration is consistent with findings whereby [88] stated that in order to enable collaboration, it requires high level of trust and information transparency which can only be achieved by building relationship of trust to enable trust and information strategy. Free information flow in the organisation also is one of the several enablers of collaboration, this finding is consistent with [14] who said that information exchange in addition to trust is very key to enabling collaboration. Further the findings of Top management play a significant role in enabling collaboration stated by Fawcett et al. [27], who stated that without top management support it is almost impossible to enable collaboration.

One of the challenges seen from literature, is the ability for returned goods to be processed quickly and with the help of efficient collaboration enablers there will be quick response on returned goods, as information sharing with the suppliers and customers will lead to quick response on returned goods. This is pertinent as information sharing will lead to a joint knowledge creation among the stakeholders in the reverse supply chain but also enhance a rapid processing of order returns. Furthermore, information sharing with suppliers and customers will bring about an enhancement in the decision making across the reverse supply chain, as well as establishing stronger partnerships and closer integration among the customer, supplier and manufacturer [89, 90]. Information sharing with suppliers and customers will lead to increased visibility, velocity and flexibility within the reverse supply chain. In this regard, the type of information being shared, the frequency, direction and mode of information sharing are particularly important for the growth of collaboration among reverse supply chain partners. Prajogo and Olhager [44] showed in their research of suppliers and manufacturers that information sharing improves logistics integration in inventory management, as these findings is somewhat related to the variable as there is a need for suppliers to participate in the inventory control of product return.

#### **3.2 Implication of findings**

From the practical point of view, several valuable managerial implications could provide valuable insights for organisations seeking to get involved with reverse supply chain not only in the distribution networks of reverse supply chain, but in the other types of the reverse supply chain networks. The research results proved that reverse supply chain partners practising collaboration should ensure to improve information sharing, decision synchronisation, incentive alignment, resource sharing, collaborative communication, joint knowledge creation and goal congruence to ensure the capability to achieve and support a prominent level of collaborative advantage for their supply chain. The following capabilities of collaboration is key to the development of sustainable rural development as information sharing is key as there has to be a.

Furthermore, using a structural modelling approach, the issue of collaboration in reverse supply chain was examined to gain an understanding of collaboration in reverse supply chain. Information sharing, decision synchronisation, incentive alignment, resource sharing, collaborative communication, joint knowledge creation and goal congruence. The study also suggests that reverse supply chain collaboration in the driving of rural development increases firm performance by enhancing inter-firm trust and commitment, which then reduce transaction costs in the reverse supply chains. This research offers a managerial insight for the reverse supply chain managers in terms of the various aspects of reverse supply chain partners toward the relationships of the partners in the rural areas of South Africa, with emphasis on the trust building mechanism, making long-term commitment more important for reverse supply chain partners. Another important finding of this study is the effect of collaboration to improve the operational performance of the reverse supply chain in rural areas, it is important that manufacturing organisations willing to improve operational performance of the reverse supply chain, should ensure that there is an achievement of the collaboration dimensions. There are different definitions and measures of collaborative advantages, which can help managers to improve shared reverse supply chain processes and achieve benefits for all members.

This study is consistent with the research by Van Dijk, and Cao and Zhang [21, 87], confirms that the use of such collaborative dimension offers flexibility, process efficiency, innovation and business synergy is the most efficient. Ignoring collaborative dimension may be one of the reasons why so many firms failed to develop effective collaboration in their supply chains. Obtaining collaborative advantages may help overcome the challenges and complexities in inter-firm collaboration that a variety of companies have faced. Collaboration is referred to as inter-organisational competitive advantage, which seeks to maximise a common profit for all reverse supply chain members. This synergetic effect of collaboration is what drives the organisational performance improvement. It arises due to collaboration efforts of the reverse supply chain partners, and it is obtained only through joint action and close collaboration. Thus, suggestions that, for a reverse supply chain to perform well, firms should try to create a win–win situation that all participants collaborate to achieve business cooperation and compete with other chain.

According to Cao and Zhang [21], competitive intentions make individual firms promote their own interests at the expenses of others, which is very insidious for collaboration and can worsen or destroy the relationships. Long-term relationships such as reverse supply chain collaboration have to be motivated by the mutuality of intent, goal congruence, and benefit sharing. Thus, managers need to align goals and benefits with reverse supply chain partners for creating collaborative advantage. Such collaborative advantage indeed directly increases the performance for each partner in

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

the chain. As the empirical results of this study show, the main instrument of obtaining collaborative advantages is the dimensions of supply chain collaboration. Under the conditions of the growing uncertainty of business environment and increasing competition, decision synchronisation, incentive alignment and information sharing come at the forefront. Practicing these collaborative dimensions allow firms to improve process visibility and reduce the uncertainty level in decision-making. Furthermore, the benefits of collaboration practices could bring about a smooth implementation of reverse supply chain, thus making available the cores required for remanufacturing, recycling practices. It is noted that this practices are sustainable practices and will help in the attainment of sustainable development in the rural areas, which are often neglected. The aforementioned practices will bring help key into the triple bottom dimension of sustainability which are economic, social and environmental. It will boost rural development economically because it will bring about more exposure and in terms of revenue in the form of tax in the rural areas, socially, it would bring about job creation to the rural area, environmentally it will bring about lower landfill as an there will be increase in awareness of the population not just disposing of their used goods. In addition, SDGs have a strong link to practices implemented under RSCM and their integration into the forward supply chain management process can stimulate synergistic effects in the attainment of sustainable rural development. Managers need guidance on implementing SDGs in the supply chain. The integration of the SDGs and RSCM provides new areas of research and reflection. The implementation of SDGs in a supply chain require a new level of commitment from all the links that co-create value, inform strategic choices, and provide actionable options for daily tasks that align supply chains, firms, and society with goals of sustainable development.

### **4. Conclusion and limitations**

In summary, this study contributes to the knowledge base of collaboration. Firstly, collaboration dimensions are likely to translate into greater management of returns. Furthermore, there has not been a lot of studies on collaboration in manufacturing reverse supply chain and in addition in the South African manufacturing context in relation to rural development, hence it is with believe that this study will contribute to the reverse supply chain industry in South Africa in driving the development of rural development. Managers need guidance on implementing SDGs in the supply chain. The integration of the SDGs and RSCM provides new areas of research and reflection.

The limitation of this study is that the respondents were from the Gauteng province, which means that a generalised statement cannot be made of the findings. It is for this that the author recommends that this finding should be carried out in other provinces. Furthermore, recommendations that research must be carried out on collaboration practices and its impact on the performance of reverse supply chain in the manufacturing industry and furthermore maybe the study should be streamlined to industries within the manufacturing industry.

### **Conflict of interest**

There is no conflict of interest.
