Product recalls are often painful to endure, but they also create important opportunities for learning. Although past research implicitly treats recalls as monolithic, our grounded theory investigation uncovered four types of recalls. Each type of recall provides insight about the adequacy of a firm's resource endowments and how a firm orchestrates the activities around its resources. For researchers, our study highlights the value of examining the confluence of recalls, resource gaps, and resource orchestration shortfalls to better understand the role of resources within supply chain management. For managers, our study highlights the value of knowing what type of recall a firm is facing and how to remedy the problems that led to the recall.
Stock options are thought to align the interests of CEOs and shareholders, but scholars have shown that options sometimes lead to outcomes that run counter to what they are meant to achieve. Building on this research, we argue that options promote a lack of caution in CEOs that manifests in a higher incidence of product safety problems. We also posit that this relationship varies across CEOs, and that the effect of options will depend upon CEO characteristics such as tenure and founder status. Analyzing product recall data for a large sample of FDA-regulated companies, we find support for our theory.
Although the literature on product recalls is informative, our understanding of these events is still in its infancy. To promote and guide future research in this nascent area, we engaged in a two‐step process that included a systematic review and categorization of product recall‐related literature and interviews with executives from along the entire supply chain. By oscillating between findings in the literature and themes that emerged during our interactions with executives, we discovered several research opportunities that have yet to be systematically examined by scholars. We also highlight four underutilized theories in supply chain management research—upper echelons theory, punctuated equilibrium theory, enactment theory, and justice theory—that could help guide future research in this area. For managers, this study reveals insights related to four key aspects of product recalls: (1) recall precursors (factors that may lead to recalls); (2) the recall process; (3) the impact of recalls; and (4) mitigation approaches (mechanisms firms can employ to reduce the impact of recalls). For scholars, our study identifies several emergent research opportunities and theoretical lenses in the same four areas and thus serves as a road map for future product recall research.
Many firms make significant investments into developing and managing knowledge within their supply chains. Such investments are often prudent because studies indicate that supply chain knowledge (SCK) has a positive influence on performance. Key questions still surround the SCK-performance relationship, however. First, what is the overall relationship between SCK and performance? Second, under what conditions is the relationship stronger or weaker? To address these questions, we applied metaanalysis to 35 studies of the SCK-performance relationship that collectively include more than 8,400 firms. Our conservative estimate is that the effect size of the overall relationship isr c = .39. We also find that the SCK-performance relationship is stronger when (i) examining operational performance, (ii) gathering data from more than one supply chain node, (iii) gathering data from multiple countries, (iv) examining service industries, and (v) among more recently published studies. We also found that studies that embraced a single theory base (as opposed to using multiple ones) had a stronger SCK-performance relationship. Looking to the future, our meta-analysis highlights the need for studies to (i) include lags between the measurement of SCK and performance, (ii) gather upstream data when examining innovation, (iii) examine SCK within emerging countries, and (iv) provide much more information relative to the nuances of the SCK † Corresponding author. 844Supply Chain Knowledge and Performance: A Meta-Analysis
Empirical research examining whether and how competition influences product recalls is limited. We address this important research gap by creating a novel measure of product competition using data from the Food and Drug Administration's Orange Book, and combining it with product recall data across a 12‐year period. Our results show that product competition is positively associated with manufacturing‐related recalls, providing evidence of a possible downside to competition in the pharmaceutical industry. Although competition is fostered by numerous federal regulations, we find that it may encourage companies to relax quality standards during the manufacturing process, which may result in lower quality products. We also find that this relationship is contingent on managerial discretion surrounding the recall decision. While product competition is associated with an increase in high severity, low discretion recalls, it is associated with a decrease in low severity, high discretion recalls. Findings from this study have critical implications for policy‐makers who regulate product competition in the pharmaceutical industry.
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