This study aimed to construct a comprehensive model examining the effects of the task environment on reverse logistics (RL) activities, and the resulting effects on both firm environmental and economic performance. Being the first of its kind to integrate three different literature streams: The task environment, RL activities, and performance, the study attempted to understand their linkages by conducting a large sample survey. Specifically, a questionnaire was adopted to conduct an investigation into the Taiwanese computer, communication, and consumer electronics (3C) retail industry. Based on 284 validated samples and with the use of structural equation modeling, it was found that certain dimensions of the task environment (government, suppliers, and customers) positively and significantly influence RL activities, whereas competitors do not have such influence. Moreover, RL activities positively and significantly influence both environmental and economic performance separately.