Leveraging closed‐loop orientation and leadership for environmental sustainability

Purpose The paper's aim is to develop a closed‐loop supply chain orientation as a strategic alternative available to supply chain organizations seeking competitive advantage in a setting that puts a premium on socially responsible decisions. Design/methodology/approach The literature describing the concepts of supply chain orientation and supply chain leadership is used to develop a framework for achieving a competitive advantage. Findings Creating a closed‐loop supply chain orientation may be facilitated when the supply chain leader demonstrates a transformational leadership style, and when socially important environmental issues are present. Research limitations/implications The paper presents a synthesis of previously unconnected concepts in a conceptual framework that sets a stage for future research in this area. Practical implications The paper highlights the strategic importance of developing a closed‐loop supply chain orientation in the presence of environmental factors, and a supply chain leadership style that may enhance the transformation to such an orientation. Originality/value The paper extends the strategic concept of supply chain orientation to include forward and reverse flows in a holistic, closed‐loop view of the supply chain.