Leveraging blockchain capabilities to optimize reverse logistics efficiency: The role of strategic decision-making in circular supply chain performance

With a growing focus on circular economy practices, reverse logistics has emerged as a key pillar of enhancing resource efficiency and environmental sustainability. While blockchain use in SCM is becoming persistent, there is still slight empirical evidence on the benefits of particular blockchain capabilities for improving the efficiency of reverse logistics and circular supply chain performance, especially in emerging economies. This study focuses on how blockchain's transparency, blockchain traceability, and smart contracts impact the efficiency of reverse logistics, and how their impact on supply chain performance is moderated by strategic decision-making capability. The study used a quantitative research design based on the Resource Based View (RBV) and Dynamic Capabilities Theory (DCT) and was conducted on a sample of manufacturing companies in Saudi Arabia. The research used Partial Least Squares Structural Equation Modeling (PLS-SEM) with 277 valid responses obtained. Results show that blockchain enhanced transparency, blockchain traceability, and smart contracts are highly useful to improve reverse logistics efficiency. The findings also show that the efficiency of reverse logistics has a positive impact on the performance of the circular supply chain. Furthermore, strategic decision-making capability plays a negative moderating role between the role of reverse logistics efficiency and circular supply chain performance, emphasizing the role of organizational capability in turning the operation into organizational sustainable results. The study contributes to the literature on blockchain and circular supply chains, filling the technological and organizational gap to understand how blockchain capability can enhance the circular supply chain performance.