Leveraging reverse engineering for CSCM practices: demystifying the roles of compositional capability and cooperative orientation under humane orientation and competition intensity

Circular supply chain management (CSCM) practices are seen as a solution for addressing society's many significant environmental challenges. Although existing studies recognise the importance of reverse engineering in combating poverty, there is limited knowledge about its effectiveness in shaping CSCM practices to address climate change and global warming. To fill this gap, this study uses the strategy tripod perspective to explore the impact of reverse engineering on CSCM practices through compositional capability and cooperative orientation, with the moderating roles of humane orientation and competition intensity. We tested our hypotheses using time-lagged data from 250 local small and medium-sized enterprises (SMEs) in Ghana, an emerging economy. The results from our structural equation modelling analyses show that local SMEs rely on cooperative orientation and compositional capability to convert reverse engineering into CSCM practices via serial mediation. Additionally, while humane orientation does not moderate this relationship, we find that competition intensity negatively influences how cooperative orientation and compositional capability affect the CSCM practices of local SMEs. Our novel findings not only advance CSCM literature but also provide practical and systematic support to local SMEs on how to leverage their capabilities and resources to tackle significant societal challenges.