Product Recalls and Supply Base Innovation

被引:9
作者
Zou, Fan [1 ]
Dong, Yan [2 ]
Song, Sining [3 ]
Rungtusanatham, Manus [4 ]
机构
[1] Penn State Univ, Smeal Coll Business, University Pk, PA 16802 USA
[2] Univ South Carolina, Moore Sch Business, Columbia, SC 29208 USA
[3] Univ Tennessee, Haslam Coll Business, Knoxville, TN 37916 USA
[4] York Univ, Schulich Sch Business, N York, ON M3J 1P3, Canada
关键词
product recall; innovation; supply chain; empirical research; RESEARCH-AND-DEVELOPMENT; ABSORPTIVE-CAPACITY; NETWORK STRUCTURE; QUALITY; IMPACT; SPILLOVERS; PERFORMANCE; STRATEGY; RETURNS; MODELS;
D O I
10.1287/msom.2023.1213
中图分类号
C93 [管理学];
学科分类号
12 ; 1201 ; 1202 ; 120202 ;
摘要
Problem definition: Suppliers are increasingly involved in innovation activities that contribute to a firm's product quality and introduce risks to firms' quality control, leading to quality failures and recalls. This quality trade-off suggests the possibility of a nonlinear relationship between supplier innovation and product recalls, which is the focus of this research. Recall literature focuses on firms' internal drivers of recalls, whereas anecdotal evidence increasingly points to the role of external drivers, such as suppliers. We contribute to the literature by examining supplier innovation as an external driver leading to recalls via quality and risk spillovers. Methodology/results: We collect and assemble a unique panel data set of consumer product recalls from firms and their supply bases (i.e., first tier suppliers). We estimate econometric models to examine the nonlinear relationship between supply base innovation, measured by research and development (R&D) intensity of the supply bases, and the likelihood of product recalls. We find a quadratic (i.e., U-shaped) relationship between the probability of recalls and supply base R&D intensity. We also find that this nonlinear relationship is critically related to three specific sources of risk: radicalness of supplier innovation, technological distance between firms and their suppliers, and complexity of supply base. Managerial implications: Our findings suggest that firms should be mindful of the quality trade-offs in encouraging supplier innovation to reduce product recalls. Further, to minimize recall risks, firms should better evaluate and manage the risks associated with external supplier knowledge that is novel and different and closely work with global suppliers to reduce coordination challenges in knowledge transfer and integration.
引用
收藏
页码:1931 / 1946
页数:17
相关论文
共 86 条
[1]  
Acemoglu D, 2014, W19894 NBER
[2]   VALUE CREATION IN INNOVATION ECOSYSTEMS: HOW THE STRUCTURE OF TECHNOLOGICAL INTERDEPENDENCE AFFECTS FIRM PERFORMANCE IN NEW TECHNOLOGY GENERATIONS [J].
Adner, Ron ;
Kapoor, Rahul .
STRATEGIC MANAGEMENT JOURNAL, 2010, 31 (03) :306-333
[3]   Does Organizational Forgetting Affect Quality Knowledge Gained Through Spillover?-Evidence from the Automotive Industry [J].
Agrawal, Anupam ;
Mukherjee, Ujjal ;
Muthulingam, Suresh .
PRODUCTION AND OPERATIONS MANAGEMENT, 2020, 29 (04) :907-934
[4]   TEAMS IN PURSUIT OF RADICAL INNOVATION: A GOAL ORIENTATION PERSPECTIVE [J].
Alexander, Lameez ;
van Knippenberg, Daan .
ACADEMY OF MANAGEMENT REVIEW, 2014, 39 (04) :423-438
[5]   Fixed-effects negative binomial regression models [J].
Allison, PD ;
Waterman, RP .
SOCIOLOGICAL METHODOLOGY 2002, VOL 32, 2002, 32 :247-265
[6]  
Angrist JD, 2009, MOSTLY HARMLESS ECONOMETRICS: AN EMPIRICISTS COMPANION, P1
[7]   The Recall Decision Exposed: Automobile Recall Timing and Process Data Set [J].
Astvansh, Vivek ;
Ball, George P. ;
Josefy, Matthew .
M&SOM-MANUFACTURING & SERVICE OPERATIONS MANAGEMENT, 2022, 24 (03) :1457-1473
[8]   Do Plant Inspections Predict Future Quality? The Role of Investigator Experience [J].
Ball, George ;
Siemsen, Enno ;
Shah, Rachna .
M&SOM-MANUFACTURING & SERVICE OPERATIONS MANAGEMENT, 2017, 19 (04) :534-550
[9]   The decision to recall: A behavioral investigation in the medical device industry [J].
Ball, George P. ;
Shah, Rachna ;
Donohue, Karen .
JOURNAL OF OPERATIONS MANAGEMENT, 2018, 62 :1-15
[10]   Product competition, managerial discretion, and manufacturing recalls in the US pharmaceutical industry [J].
Ball, George P. ;
Shah, Rachna ;
Wowak, Kaitlin D. .
JOURNAL OF OPERATIONS MANAGEMENT, 2018, 58-59 :59-72