Skip to main content

Advertisement

SpringerLink
Log in

Effects of supply chain practices, integration and closed-loop supply chain activities on cost-containment of biodiesel

  • Original Paper
  • Published:
Review of Managerial Science Aims and scope Submit manuscript

Abstract

Recent research has pointed out that non-technical problems, rather than technical problems, are mainly responsible for the obstacles facing the development of the biodiesel industry. The present study focused on one such important non-technical problem: that of supply chain practices. More specifically, the aim of this study is to investigate the effect of supply chain practices on supply chain integration and closed-loop supply chain activities, and consequently, on the cost-containment of biodiesel producers. Data were gathered through a survey of 108 biodiesel producers and were analysed using the partial least squares technique. The results show that all three supply chain practices have a significant effect on supply chain integration and closed-loop supply chain activities and lead to cost-containment of biodiesel. The findings are useful for managers of biodiesel companies who seek to reduce the cost of biodiesel production and to position it as a feasible alternative to fossil fuels by adopting closed-loop supply chain activities and integrating the supply chain.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1

Similar content being viewed by others

References

  • Agarwal AK, Gupta JG, Dhar A (2017) Potential and challenges for large-scale application of biodiesel in automotive sector. Prog Energy Combust Sci 61:113–149

    Google Scholar 

  • Aghbashlo M, Hosseinpour S, Tabatabaei M, Soufiyan MM (2019) Multi-objective exergetic and technical optimization of a piezoelectric ultrasonic reactor applied to synthesize biodiesel from waste cooking oil (WCO) using soft computing techniques. Fuel 235:100–112

    Google Scholar 

  • Ahmed N, Glaser M (2016) Coastal aquaculture, mangrove deforestation and blue carbon emissions: is REDD+ a solution? Mar Policy 66:58–66

    Google Scholar 

  • Armstrong JS, Overton TS (1977) Estimating nonresponse bias in mail surveys. J Mark Res 14:396–402

    Google Scholar 

  • Atabani AE, Silitonga AS, Badruddin IA et al (2012) A comprehensive review on biodiesel as an alternative energy resource and its characteristics. Renew Sustain Energy Rev 16:2070–2093

    Google Scholar 

  • Bagchi PK, Chun Ha B, Skjoett-Larsen T, Boege Soerensen L (2005) Supply chain integration: a European survey. Int J Logist Manag 16:275–294

    Google Scholar 

  • Balat M (2006) Bio-diesel from vegetable oils via transesterification in supercritical ethanol. Energy Educ Sci Technol 16:45–52

    Google Scholar 

  • Baroi C, Dalai AK (2015) Process sustainability of biodiesel production process from green seed canola oil using homogeneous and heterogeneous acid catalysts. Fuel Process Technol 133:105–119

    Google Scholar 

  • Canakci M, Van Gerpen J (1998) A pilot plant to produce biodiesel from high free fatty acid feedstocks. In: 2001 ASAE annual meeting. American Society of Agricultural and Biological Engineers

  • Cao L, Wang J, Liu K, Han S (2014) Ethyl acetoacetate: a potential bio-based diluent for improving the cold flow properties of biodiesel from waste cooking oil. Appl Energy 114:18–21

    Google Scholar 

  • Chen IJ, Paulraj A (2004) Towards a theory of supply chain management: the constructs and measurements. J Oper Manag 22:119–150

    Google Scholar 

  • Chen Y, Xiao B, Chang J et al (2009) Synthesis of biodiesel from waste cooking oil using immobilized lipase in fixed bed reactor. Energy Convers Manag 50:668–673

    Google Scholar 

  • Chin WW (2010) How to write up and report PLS analyses. In: Vinzi VE, Chin WW (eds) Handbook of partial least squares: concepts, methods and application. Springer, Berlin, pp 655–690

    Google Scholar 

  • Christopher LP, Kumar H, Zambare VP (2014) Enzymatic biodiesel: challenges and opportunities. Appl Energy 119:497–520

    Google Scholar 

  • Cohen J (1988) Statistical power analysis for the behavioral sciences. Routledge Academic, Abingdon

    Google Scholar 

  • da Silva César A, Werderits DE, de Oliveira Saraiva GL, da Silva Guabiroba RC (2017) The potential of waste cooking oil as supply for the Brazilian biodiesel chain. Renew Sustain Energy Rev 72:246–253

    Google Scholar 

  • Dautzenberg K, Hanf J (2008) Biofuel chain development in Germany: organisation, opportunities, and challenges. Energy Policy 36:485–489

    Google Scholar 

  • Dawe RL (1994) An investigation of the pace and determination of information technology use in the manufacturing materials logistics system. J Bus Logist 15:229–258

    Google Scholar 

  • De Meyer A, Cattrysse D, Rasinmäki J, Van Orshoven J (2014) Methods to optimise the design and management of biomass-for-bioenergy supply chains: a review. Renew Sustain Energy Rev 31:657–670

    Google Scholar 

  • Demirbas A (2007) Importance of biodiesel as transportation fuel. Energy Policy 35:4661–4670

    Google Scholar 

  • Dorado MP, Ballesteros E, De Almeida JA et al (2002) An alkali-catalyzed transesterification process for high free fatty acid waste oils. Trans ASAE 45:525–529

    Google Scholar 

  • Faul F, Erdfelder E, Buchner A, Lang A-G (2009) Statistical power analyses using G* Power 3.1: tests for correlation and regression analyses. Behav Res Methods 41:1149–1160

    Google Scholar 

  • Fornell C, Larcker DF (1981) Evaluating structural equation models with unobservable variables and measurement error. J Mark Res 18:39–50

    Google Scholar 

  • Foroughi B, Nikbin D, Hyun SS, Iranmanesh M (2016) Impact of core product quality on sport fans’ emotions and behavioral intentions. Int J Sport Mark Spons 17:110–129

    Google Scholar 

  • Frohlich MT, Westbrook R (2001) Arcs of integration: an international study of supply chain strategies. J Oper Manag 19:185–200

    Google Scholar 

  • Georgiadis P, Vlachos D (2004) The effect of environmental parameters on product recovery. Eur J Oper Res 157:449–464

    Google Scholar 

  • Guabiroba RC da S (2009) O processo de roteirização como elemento de redução do custo de coleta em área urbana de óleo residual de fritura para produção de biodiesel. Dissertação de Mestrado. Universidade Federal do Rio de Janeiro/COPPE, Rio de Janeiro

  • Gui MM, Lee KT, Bhatia S (2008) Feasibility of edible oil versus non-edible oil versus waste edible oil as biodiesel feedstock. Energy 33:1646–1653

    Google Scholar 

  • Guide VDR Jr, Jayaraman V, Linton JD (2003) Building contingency planning for closed-loop supply chains with product recovery. J Oper Manag 21:259–279

    Google Scholar 

  • Hair JF, Ringle CM, Sarstedt M (2011) PLS-SEM: indeed a silver bullet. J Mark Theory Pract 19:139–152

    Google Scholar 

  • Hair JF Jr, Hult GTM, Ringle C, Sarstedt M (2014) A primer on partial least squares structural equation modeling (PLS-SEM). Sage Publication, Incorporated, Thousand Oaks

    Google Scholar 

  • Han H, Hwang J (2017) What motivates delegates’ conservation behaviors while attending a convention? J Travel Tour Mark 34(1):82–98

    Google Scholar 

  • Han H, Kim W, Kiatkawsin K (2017a) Emerging youth tourism: fostering young travelers’ conservation intentions. J Travel Tour Mark 34(7):905–918

    Google Scholar 

  • Han H, Hwang J, Lee MJ (2017b) The value-belief-emotion-norm model: investigating customers’ eco-friendly behavior. J Travel Tour Mark 34(5):590–607

    Google Scholar 

  • Han H, Hwang J, Lee S (2017c) Cognitive, affective, normative, and moral triggers of sustainable intentions among convention-goers. J Environ Psychol 51:1–13

    Google Scholar 

  • Han H, Meng B, Kim W (2017d) Emerging bicycle tourism and the theory of planned behavior. J Sustain Tour 25(2):292–309

    Google Scholar 

  • Han H, Lee MJ, Kim W (2018a) Antecedents of green loyalty in the cruise industry: sustainable development and environmental management. Bus Strategy Environ 27:323–335

    Google Scholar 

  • Han H, Kim W, Lee S (2018b) Drivers of museum visitor willingness to practice green activities. Soc Behav Personal 46(2):233–248

    Google Scholar 

  • Harman HH (1976) Modern factor analysis. University of Chicago press, Chicago

    Google Scholar 

  • Henseler J, Dijkstra TK, Sarstedt M et al (2014) Common beliefs and reality about PLS: comments on Rönkkö and Evermann (2013). Organ Res Methods 17:182–209

    Google Scholar 

  • Henseler J, Ringle CM, Sarstedt M (2015) A new criterion for assessing discriminant validity in variance-based structural equation modeling. J Acad Mark Sci 43:115–135

    Google Scholar 

  • Henseler J, Ringle CM, Sarstedt M (2016) Testing measurement invariance of composites using partial least squares. Int Mark Rev 33:405–431

    Google Scholar 

  • Hosseinpour S, Aghbashlo M, Tabatabaei M, Khalife E (2016) Exact estimation of biodiesel cetane number (CN) from its fatty acid methyl esters (FAMEs) profile using partial least square (PLS) adapted by artificial neural network (ANN). Energy Convers Manag 124:389–398

    Google Scholar 

  • Huo B (2012) The impact of supply chain integration on company performance: an organizational capability perspective. Supply Chain Manag An Int J 17:596–610

    Google Scholar 

  • Iranmanesh M, Zailani S, Nikbin D (2017) RFID continuance usage intention in health care industry. Qual Manag Health Care 26:116–123

    Google Scholar 

  • Issariyakul T, Dalai AK (2014) Biodiesel from vegetable oils. Renew Sustain Energy Rev 31:446–471

    Google Scholar 

  • Johnson JL (1999) Strategic integration in industrial distribution channels: managing the interfirm relationship as a strategic asset. J Acad Mark Sci 27:4–18

    Google Scholar 

  • Kahn KB, Mentzer JT (1996) Logistics and interdepartmental integration. Int J Phys Distrib Logist Manag 26:6–14

    Google Scholar 

  • Kaliani Sundram VP, Chandran VGR, Awais Bhatti M (2016) Supply chain practices and performance: the indirect effects of supply chain integration. Benchmarking An Int J 23:1445–1471

    Google Scholar 

  • Kennedy HT (2018) German biodiesel exports increased due to high demand. https://www.biofuelsdigest.com/bdigest/2018/03/03/german-biodiesel-exports-increased-due-to-highdemand/. Accessed 20 Dec 2018

  • Kim SW (2006) Effects of supply chain management practices, integration and competition capability on performance. Supply Chain Manag An Int J 11(3):241–248

    Google Scholar 

  • Kim SW (2009) An investigation on the direct and indirect effect of supply chain integration on firm performance. Int J Prod Econ 119:328–346

    Google Scholar 

  • Kline RB (2016) Principles and practice of structural equation modeling, 4th edn. The Guilford Press, New York

    Google Scholar 

  • Kurniawan R, Zailani SH, Iranmanesh M, Rajagopal P (2017) The effects of vulnerability mitigation strategies on supply chain effectiveness: risk culture as moderator. Supply Chain Manag An Int J 22:1–15

    Google Scholar 

  • Lee D-H, Bian W, Dong M (2007) Multiobjective model and solution method for integrated forward and reverse logistics network design for third-party logistics providers. Transp Res Rec 2032:43–52

    Google Scholar 

  • Lenny Koh SC, Demirbag M, Bayraktar E et al (2007) The impact of supply chain management practices on performance of SMEs. Ind Manag Data Syst 107:103–124

    Google Scholar 

  • Liew WH, Hassim MH, Ng DKS (2014) Review of evolution, technology and sustainability assessments of biofuel production. J Clean Prod 71:11–29

    Google Scholar 

  • Ma F, Hanna MA (1999) Biodiesel production: a review. Bioresour Technol 70:1–15

    Google Scholar 

  • Maneerung T, Kawi S, Dai Y, Wang C-H (2016) Sustainable biodiesel production via transesterification of waste cooking oil by using CaO catalysts prepared from chicken manure. Energy Convers Manag 123:487–497

    Google Scholar 

  • McCormick K, Kåberger T (2007) Key barriers for bioenergy in Europe: economic conditions, know-how and institutional capacity, and supply chain co-ordination. Biomass Bioenerg 31:443–452

    Google Scholar 

  • Meng JG, Elliott KM (2008) Predictors of relationship quality for luxury restaurants. J Retail Consum Serv 15:509–515

    Google Scholar 

  • Meng X, Chen G, Wang Y (2008) Biodiesel production from waste cooking oil via alkali catalyst and its engine test. Fuel Process Technol 89:851–857

    Google Scholar 

  • Min S, Mentzer JT (2004) Developing and measuring supply chain management concepts. J Bus Logist 25:63–99

    Google Scholar 

  • Narasimhan R (1997) Strategic supply management: a total quality management imperative. Adv Manag Organ Qual 2:39–86

    Google Scholar 

  • Nelson RG, Howell SA, Weber JA (1994) Potential feedstock supply and costs for biodiesel production. In: Bioenergy 94’ proceedings of the sixth national bioenergy conference. Western Regional Biomass Energy Program, Reno, NV (United States)

  • Noordam M, Withers R (1996) Producing biodiesel from canola in the inland northwest: an economic feasibility study. Idaho Agricultural Experiment Station Bulletin No. 785

  • Pagell M, Wu Z, Murthy NN (2007) The supply chain implications of recycling. Bus Horiz 50:133–143

    Google Scholar 

  • Paksoy T, Bektaş T, Özceylan E (2011) Operational and environmental performance measures in a multi-product closed-loop supply chain. Transp Res Part E Logist Transp Rev 47:532–546

    Google Scholar 

  • Patle DS, Sharma S, Ahmad Z, Rangaiah GP (2014) Multi-objective optimization of two alkali catalyzed processes for biodiesel from waste cooking oil. Energy Convers Manag 85:361–372

    Google Scholar 

  • Peng B-X, Shu Q, Wang J-F et al (2008) Biodiesel production from waste oil feedstocks by solid acid catalysis. Process Saf Environ Prot 86:441–447

    Google Scholar 

  • Phan AN, Phan TM (2008) Biodiesel production from waste cooking oils. Fuel 87:3490–3496

    Google Scholar 

  • Podsakoff PM, MacKenzie SB, Lee J-Y, Podsakoff NP (2003) Common method biases in behavioral research: a critical review of the literature and recommended remedies. J Appl Psychol 88:879–903

    Google Scholar 

  • Pramatari K (2007) Collaborative supply chain practices and evolving technological approaches. Supply Chain Manag an Int J 12:210–220

    Google Scholar 

  • Restrepo JD, Kettner AJ, Syvitski JPM (2015) Recent deforestation causes rapid increase in river sediment load in the Colombian Andes. Anthropocene 10:13–28

    Google Scholar 

  • Reuters (2018) Worldwide used cooking oil (UCO) market size, share, growth, key players and CAGR of 3.8% by foresight to 2023—Reuters

  • Richter NF, Sinkovics RR, Ringle CM, Schlaegel C (2016) A critical look at the use of SEM in international business research. Int Mark Rev 33:376–404

    Google Scholar 

  • Rogers DS, Tibben-Lembke RS (1998) Going backwards: reverse logistics trends and practices. Center for Logistics Management, University of Nevada, Reno, Reverse Logistics Executive Council

  • Rosenzweig ED, Roth AV, Dean JW Jr (2003) The influence of an integration strategy on competitive capabilities and business performance: an exploratory study of consumer products manufacturers. J Oper Manag 21:437–456

    Google Scholar 

  • Sahay BS, Mohan R (2003) Supply chain management practices in Indian industry. Int J Phys Distrib Logist Manag 33:582–606

    Google Scholar 

  • Sajjadi B, Raman AAA, Arandiyan H (2016) A comprehensive review on properties of edible and non-edible vegetable oil-based biodiesel: composition, specifications and prediction models. Renew Sustain Energy Rev 63:62–92

    Google Scholar 

  • Schmidt A (1992) Closed-cycle technologies in the chemical industry. Chem Eng Process Process Intensif 31:43–47

    Google Scholar 

  • Sekaran U (2009) Research method for business, a skill building approach, 4th edn. Wiley, New York

    Google Scholar 

  • Shaharudin MR, Govindan K, Zailani S et al (2017) Product return management: linking product returns, closed-loop supply chain activities and the effectiveness of the reverse supply chains. J Clean Prod 149:1144–1156

    Google Scholar 

  • Stank TP, Keller SB, Closs DJ (2001) Performance benefits of supply chain logistical integration. Transp J 41:32–46

    Google Scholar 

  • Statista (2017) Major biodiesel producing countries 2017 | Statistic

  • Tan KT, Lee KT, Mohamed AR (2011) Potential of waste palm cooking oil for catalyst-free biodiesel production. Energy 36:2085–2088

    Google Scholar 

  • Toop G, Alberici S, Spoettle M, et al (2014) Trends in the UCO market-input to PIR-trends in the UCO market-Input to PIR

  • UFOP (2017) UFOP report on global market supply: 2017/2018

  • Upham P, Thornley P, Tomei J, Boucher P (2009) Substitutable biodiesel feedstocks for the UK: a review of sustainability issues with reference to the UK RTFO. J Clean Prod 17:S37–S45

    Google Scholar 

  • Van der Vaart T, van Donk DP (2008) A critical review of survey-based research in supply chain integration. Int J Prod Econ 111:42–55

    Google Scholar 

  • Van Kasteren JMN, Nisworo AP (2007) A process model to estimate the cost of industrial scale biodiesel production from waste cooking oil by supercritical transesterification. Resour Conserv Recycl 50:442–458

    Google Scholar 

  • Wetzels M, Odekerken-Schroder G, Van Oppen C (2009) Using PLS path modeling for assessing hierarchical construct models: guidelines and empirical illustration. MIS Q 33:177–195

    Google Scholar 

  • Yaakob Z, Mohammad M, Alherbawi M et al (2013) Overview of the production of biodiesel from waste cooking oil. Renew Sustain Energy Rev 18:184–193

    Google Scholar 

  • Zailani S, Rajagopal P (2005) Supply chain integration and performance: US versus East Asian companies. Supply Chain Manag An Int J 10:379–393

    Google Scholar 

  • Zailani S, Shaharudin MR, Razmi K, Iranmanesh M (2017) Influential factors and performance of logistics outsourcing practices: an evidence of malaysian companies. Rev Manag Sci 11:53–93

    Google Scholar 

  • Zailani S, Iranmanesh M, Sean Hyun S, Ali MH (2019) Applying the theory of consumption values to explain drivers’ willingness to pay for biofuels. Sustainability 11:668

    Google Scholar 

  • Zainuddin ZB, Zailani S, Govindan K et al (2017) Determinants and outcome of a clean development mechanism in Malaysia. J Clean Prod 142:1979–1986

    Google Scholar 

  • Zhang Y, Jiang Y (2017) Robust optimization on sustainable biodiesel supply chain produced from waste cooking oil under price uncertainty. Waste Manag 60:329–339

    Google Scholar 

  • Zhang Y, Dube MA, McLean DD, Kates M (2003a) Biodiesel production from waste cooking oil: 2. Economic assessment and sensitivity analysis. Bioresour Technol 90:229–240

    Google Scholar 

  • Zhang Y, Dube MA, McLean DDL, Kates M (2003b) Biodiesel production from waste cooking oil: 1. Process design and technological assessment. Bioresour Technol 89:1–16

    Google Scholar 

Download references

Acknowledgements

The authors would like to acknowledge the financial support provided by University of Malaya under the research Grant GC001F-14AET.

Author information

Authors and Affiliations

  1. Faculty of Business and Accountancy, University of Malaya (UM), 50603, Kuala Lumpur, Malaysia

    Suhaiza Zailani

  2. Graduate School of Business, Universiti Sains Malaysia (USM), 11800, Penang, Malaysia

    Mohammad Iranmanesh & Behzad Foroughi

  3. Korean Standards Association, Ace High-end Tower 3rd Bldg, 145 Gasan Digital 1-ro, Geumcheon-gu, Seoul, 08056, Republic of Korea

    Kwangyong Kim

  4. School of Tourism, Hanyang University, Seoul, 133-791, Republic of Korea

    Sunghyup Sean Hyun

Authors
  1. Suhaiza Zailani
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Mohammad Iranmanesh
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Behzad Foroughi
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Kwangyong Kim
    View author publications

    You can also search for this author in PubMed Google Scholar

  5. Sunghyup Sean Hyun
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Sunghyup Sean Hyun.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Zailani, S., Iranmanesh, M., Foroughi, B. et al. Effects of supply chain practices, integration and closed-loop supply chain activities on cost-containment of biodiesel. Rev Manag Sci 14, 1299–1319 (2020). https://doi.org/10.1007/s11846-019-00332-9

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11846-019-00332-9

Keywords

Mathematics Subject Classifcation

Search

Navigation