‘Rising on a Reverse Route’ – Can Reverse Logistics Influence Perceived Customer Value in Sri Lanka’s Mobile Phone Industry

Abstract

Main objective of the study was to examine the nature of the relationship between reverse logistics efforts of the smart phone industry and its impact on perceived customer value in Sri Lanka. The research design was based on positivism ontology with a deductive approach; a conceptual framework was derived through literature review which comprised of two dimensions namely, reverse logistics and perceived customer value. Hypotheses were developed consequently to confirm correlation among the main dimensions. Findings of the study concluded that the main form of reverse logistics activities practiced in the industry were repairing and refurbishing, while recycling and remanufacturing were recorded less than 10% of the total reverse logistics efforts. It was also evident that there is a strong relationship between some reverse logistic activities and the perceived customer value. Broad scope of the study was the main limitation; as mobile penetration rate is considerably high in Sri Lanka. Therefore, resource constraints, particularly, time and financial resources, restricted examining the objective island wide. The study, nonetheless, validated a conceptual framework on reverse logistics and customer satisfaction. In addition, the research findings diagnosed the critical success factors pertaining to reverse logistics in the context of the mobile industry in Sri Lanka.