Search results

Food recalls are more potentially harmful than other product recalls. This research aimed to investigate the effect of the recall strategies of food corporations on their brand image and consumers’ purchase intention.

This study adopts a between-subjects experiment of 2 (corporate recall strategy: voluntary recall, mandatory recall) *3 (food recall level (severity): high, medium, low), and recruits 224 consumers involved in cereal product recall in China. The authors inductively examine the effects of voluntary and mandatory recall on consumer perception and behavior intentions in the recall process.

Voluntary recall (vs. mandatory recall) will improve corporate brand responsibility image (vs. brand ability image) and consumers’ purchase intention to focal brand (vs. competitive brand and organic brand). Perceived corporate legitimacy and food safety play a mediating role. The former has a greater positive impact on brand image, and the latter has a more significant favorable influence on purchase intention. Furthermore, recall level has a moderating effect on the association between corporate recall strategy and perceived food safety, but is not significant in the effect of corporate recall strategy on perceived corporate legitimacy.

Previous inconsistent conclusions cannot effectively guide food corporations to manage recall strategies. This paper demonstrates the response mechanism of the recall strategy from the perspective of corporate social responsibility, which is beneficial to food safety crisis management and research.

Using the combined theoretical umbrella of organizational legitimacy theory, service-dominant logic, fairness heuristic theory and two-factor theory, the purpose of this paper is to investigate the effectiveness of different food recall strategies (recall proactiveness and compensation) in terms of both how consumers react (perceived organizational legitimacy and purchase intention) and how recall norms would influence the effectiveness in three countries. In addition to the reporting of important results, this paper provides implications for food companies to handle effectively the recalls, especially when the recalls are cross-country.

A 2 compensation (high vs low) ×2 recall strategy (proactive vs passive) scenario experiment was conducted in Hong Kong, the USA and Mainland China. After checking the effectiveness of manipulation, the paper tested the main effect and interaction effect of recall proactiveness and compensation on perceived organizational legitimacy and purchase intention. In addition, the mediating effect of perceived organizational legitimacy between recall strategies and purchase intention was also tested.

Significant main effect, interaction and mediation effect were found across the three countries with a different pattern. For the USA and Mainland China which have strong recall norms, the interaction found followed the predictions of the two-factory theory. However, the pattern found in Hong Kong, which has weak recall norms, followed the predictions of the fairness heuristic theory. Full mediation effect of perceived organizational legitimacy between compensation and purchase intention was found in the USA and Mainland China, while it was only partial in Hong Kong. For the mediation between proactiveness and purchase intention, full mediation was found in Hong Kong and the USA, while it was only partial in Mainland China.

First, this study differentiated food recall strategy into two dimensions – recall proactiveness and compensation. Second, this study tested the applicability of two-factor theory and fairness heuristic theory in recalls by testing the competing hypotheses proposed according to the two theories. Finally, this study can further help our understanding of the recall effectiveness across different recall norms.

Product recalls have the potential to damage firm and consumer quality reputation. While globalization has brought about various economic benefits, expanding supply chain networks have also made it more difficult for downstream organizations to manage product recall strategy. This study aims to examine the role of culture on a manufacturer's initiation of a recall and the severity of the remedy chosen for the product recall.

Utilizing the culture-specific argument, this study uses an exploratory approach to assess how cultural variables impact recall strategy utilizing a large-scale data analysis with a cross-sectional time-series panel of 898 firms.

The results provide support for the expected utility hypothesis that the more severe the consequence, the more likely a manufacturer will decide to recall the product. Moreover, the more likely the manufacturer will provide greater returns to the consumer. However, these relationships are impacted to differing degrees by the manufacturer's cultural origin.

These results provide evidence to researchers about how culture impacts the expected utility hypothesis in the decision theory. The study examines how deeply embedded cultural variables impact the relationship between the foreseeable consequence of the product recall and the recall facilitator and remedy.

This study explores whether the unique organizational form of family firms helps to mitigate the negative effects caused by the announcement of product recalls.

The authors use an event study, for a sample of 2,576 product recalls in the United States (US) automobile industry, between January 2010 and June 2021.

The authors found that stock market's reaction to a product recall announcement is less negative for family firms. This superior performance is partially driven by the family firms' long-term investment horizons and higher strategic emphasis on product quality. However, the relationship between family ownership and cumulative abnormal returns around product recall announcements is nonlinear as the impact of family ownership starts by being positive but becomes negative for higher levels of family ownership. The authors also find that family firm's chief executive officer (CEO) and managerial ownership influence positively the stock market reaction to product recall announcements.

This work has several implications for family firms' management as well as for investors and financial analysts. First, as higher managerial ownership is associated with a greater emphasis on product quality, decreasing stock market losses when a product recall occurs, family firms should consider increasing equity-based compensation. Second, as there seems to exist an optimal proportion of family ownership, family firms should consider the risks of increasing too much their ownership share. Third, investors and financial analysts can use the results in the study to help them in their investment and trading decisions in the stock market.

The authors extend the knowledge of product recalls by studying the under-researched role of the flexible, internally focused culture of family businesses on the stock market reaction to product recalls.

This study examines the effect of stable institutional investors on firms' product quality failures. Furthermore, the authors investigate the channels through which institutional ownership stability enhances product quality management.

This study uses probit, ordered probit and negative binomial regression frameworks to investigate the research questions. In addition, the authors utilize the three-stage least-squares to address the endogeneity issues.

Using a sample of product recall incidents from 2012 to 2021, the authors find that firms with more stable institutional ownership have a lower probability, frequency and severity of recall incidents and adopt a proactive product recall strategy. Institutional investors with significant and persistent holdings improve quality management by reducing overinvestment and the use of option-linked and relative performance executive compensations. Furthermore, the influence of stable institutional owners on product quality failures is more pronounced in firms with low managerial ability and specialist CEOs. Lastly, the empirical evidence demonstrates that stable holdings by active investors have a more substantial impact on reducing product recalls than passive and other stable institutional holdings.

This study is the first to examine the impact of institutional ownership stability on firms' product recalls. The authors contribute to the literature on the benefits of stable institutional ownership on firm outcomes and the determinants of product quality failures.

The purpose of this paper is to examine the automotive product recall risk in terms of social sustainability performance and to evaluate the role of buyer‒supplier relationships in improving social sustainability during product recall crises.

A multi-methodology approach is used to empirically analyse the interrelationship between the proposed constructs and enablers of the buyer‒supplier relationship. Structural equation modelling and interpretive structural modelling are followed to analyse the data gathered thorough a questionnaire survey of 204 executives and interviews with 15 managers from the automotive industry.

The results of the study provide evidence regarding the impact of the responsible buyer‒supplier relationship on customer recall concerns and the social sustainability performance of supply chains (SCs). This study also leads to the development of a conceptual model, providing a relationship between the three key concepts used in this study.

Following social sustainability principles, this study addresses the importance of developing strong, responsible relational ties with suppliers to reduce vehicle recalls or successfully recover from a product recall crisis.

This study contributes to the literature by providing theoretical and empirical insights for developing socially responsible SCs and confirming the role of the buyer‒supplier governance mechanism during product recalls in the context of the automotive industry.

This study aims to explore how graduate students in the social sciences develop reading and note-taking routines.

Using a professional socialization framework drawing on grounded theory, this study draws on a snowball sample of 36 graduate students in the social sciences at US universities. Qualitative interviews were conducted to learn about graduate students’ reading and note-taking techniques.

This study uncovered how doctoral students experienced the shift from undergraduate to graduate training. Graduate school requires students to adopt new modes of reading and note-taking. However, students lacked explicit mentorship in these skills. Once they realized that the goal was to enter an academic conversation to produce knowledge, they developed new reading and note-taking routines by soliciting and implementing suggestions from advanced doctoral students and faculty mentors.

The specific requirements of the individual graduate program shape students’ goals for reading and note-taking. Further examination of the relationship between graduate students’ reading and note-taking and institutional requirements is warranted with a larger sample of universities, including non-American institutions.

Graduate students benefit from explicit mentoring in reading and note-taking skills from doctoral faculty and advanced graduate students.

This study uncovers the perspectives of graduate students in the social sciences as they transition from undergraduate coursework in a doctoral program of study. This empirical, interview-based research highlights the centrality of reading and note-taking in doctoral studies.

Despite the growing availability of scanner-panel data, surveys remain the most common and inexpensive method of gathering marketing metrics. The purpose of this paper is to explore the size, direction and correction of response errors in retrospective reports of category buying.

Self-reported purchase frequency data were validated using British household panel records and the negative binomial distribution (NBD) in six packaged goods categories. The log likelihood theory and the fit of the NBD model were used to test an approach to adjusting the errors post-data collection.

The authors found variations in systematic response errors according to buyer type. Specifically, lighter buyers tend to forward telescope their buying episodes. Heavier buyers tend either to over-use a rate-based estimation of once-a-month buying and over-report purchases at multiples of six or to use round numbers. These errors lead to overestimates of penetration and average purchase frequency. Adjusting the aggregate data for the NBD, however, improves the accuracy of these metrics.

In light of the importance of purchase data for decision making, the authors describe the inaccuracy problem in frequency reports and offer practical suggestions regarding the correction of survey data.

Two novel contributions are offered here: an investigation of errors in different buyer groups and use of the NBD in survey accuracy research.

This paper aims to examine the cognitive processes involved in answering survey questions. It also briefly discusses how the cognitive viewpoint has been challenged by other approaches (such as conversational analysis).

The paper reviews the major components of the response process and summarizes work examining how each of these components can contribute to measurement errors in surveys.

The Cognitive Aspects of Survey Methodology (CASM) model of the survey response process is still generating useful research, but both the satisficing model and the conversational approach provide useful supplements, emphasizing motivational and social sources of error neglected in the CASM approach.

The paper provides an introduction to the cognitive processes underlying survey responses and how these processes can explain why survey responses may be inaccurate.

Negative media coverage has important impacts on firm financial performance, but existing studies have inconsistent views of this relationship and lack a unified theoretical framework to explain how such impacts arise. This study aims to bridge this gap in the literature.

This study uses two sets of data encompassing publicly listed companies in Shanghai and Shenzhen stock exchanges from 2013 to 2019, which are covered by the China Stock Market and Accounting Research Database.

This study finds that the number of negative news coverages has an inverted U-shaped relationship with firm financial performance; this relationship is weakened by the proportion of shares held by institutional investors and strengthened by advertising intensity.

This study suggests that corporate executives should be aware of the potential value of a limited amount of negative news coverage and react with tolerance and caution when their companies encounter it.

This study uses two different routes provided in the elaboration likelihood model theory to fully explain the processes underlying changes in investors’ attitudes toward firms experiencing negative media coverage.