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Article
Publication date: 29 January 2024

Jiyoon An

The rising number of food recalls has raised concerns about complexity, globalization and weak governance in the food supply chain. This paper aims to investigate the recall of…

Abstract

Purpose

The rising number of food recalls has raised concerns about complexity, globalization and weak governance in the food supply chain. This paper aims to investigate the recall of plant-based products with data from the US Food and Drug Administration.

Design/methodology/approach

Introducing the structural topic modeling method allowed us to test theories on recall in the context of sustainable food consumption, enhancing the understanding of food recall processes. This approach helps identify latent topics of product recalls and their interwoven relationships with various stakeholders.

Findings

The results answer a standing research call for empirical investigation in a nascent food industry to identify stakeholders’ engagements for food safety crisis management for corporate social responsibility practices. This finding provides novel insights on managing threats to food safety at an industry level to extend existing antecedents and consequences of product recall at a micro level.

Practical implications

For practitioners, this empirical finding may provide insights into stakeholder management and develop evidence-based strategies to prevent threats to food safety. For public policymakers, this analysis may help identify patterns of recalls and assist guidelines and alarm systems (e.g. EU’s Rapid Alert System for Food and Feed) on threats in the food supply chain.

Originality/value

Two detected clusters, such as opportunisms of market actors in the plant-based food system and food culture, from the analysis help understand corporate social responsibility and food safety in the plant-based food industry.

Details

Social Responsibility Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1747-1117

Keywords

Article
Publication date: 21 December 2023

Rick Hardcopf and Rachna Shah

This study investigates whether a firm that has experienced an environmental accident (EA) is less likely to conduct a product recall. If true, it would indicate that EAs tempt…

Abstract

Purpose

This study investigates whether a firm that has experienced an environmental accident (EA) is less likely to conduct a product recall. If true, it would indicate that EAs tempt firms to hide operational problems that need to be revealed. The logic is that both events are operational failures that damage a firm's reputation and share price. Following an EA, a firm may avoid a discretionary product recall to avoid providing additional evidence of operational incapability and social irresponsibility and thereby triggering amplified reputational and market penalties.

Design/methodology/approach

The dataset is compiled from several public and private sources and includes 4,355 product recalls, 153 EAs and 120 firms from the industries that often recall products, including automotive, pharma, medical device, food and consumer products. The study timeframe is 2002–2013. Empirical models are evaluated using hazard modeling.

Findings

Results show that EAs reduce the probability of a product recall by 32%, on average. Effect sizes are larger when accidents are more frequent or more severe and when recalls are less severe. Through post hoc analyses, the study finds support for the proposed mechanism that firms avoid recalls due to reputational concerns, provides evidence that EAs can have a lengthy impact on recall behavior, and shows that firms are more likely to avoid recalls managed by the CPSC and NHTSA than recalls managed by the FDA.

Originality/value

Prior studies in operations management (OM) have not examined the impact of one negative event on another. This study finds that EAs tempt firms to hide operational problems that need to be revealed. While recalling fewer defective products is of concern to consumers and regulators, should EAs influence a broader set of discretionary operational decisions, such as closing/relocating a production facility, outsourcing production or conducting a layoff, study implications increase significantly.

Details

International Journal of Operations & Production Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 21 December 2023

Thanh Dat Le and Nguyen Nguyen

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

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Originality/value

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.

Details

International Journal of Managerial Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1743-9132

Keywords

Article
Publication date: 6 November 2023

Madison B. Harvey, Heather L. Price and Kirk Luther

The purpose of this study was to explore potential witnesses' memories for a day that was experienced an unremarkable. There may be instances in an investigation in which all…

Abstract

Purpose

The purpose of this study was to explore potential witnesses' memories for a day that was experienced an unremarkable. There may be instances in an investigation in which all leads have been exhausted, and investigators use a broad appeal for witnesses who may have witnessed something important. Investigators can benefit from knowing the types of information that may be recalled in such circumstances, as well as identifying specific methods that are effective in eliciting useful information.

Design/methodology/approach

The present study explored how the delay to recall and recall method influenced the recollection of a seemingly unremarkable day that later became important. Participants were asked to recall an experienced event that occurred either recently (a few weeks prior) or in the distant past (a year prior). Participants recalled via either a written method, in-person individual-spoken or collaborative-spoken interviews.

Findings

Results suggest an independent benefit for individual-spoken in-person recall (compared to written or collaborative-spoken recall) and recall undertaken closely after an event (compared to delayed recall). Both individual-spoken interviews as well as more recent recollection resulted in a greater number of overall details recalled. The authors further examined the types of details recalled that might be important to progressing an investigation (e.g. other witnesses and records).

Originality/value

The present work provides important implications for interviewing witnesses about a seemingly unremarkable event that later became important.

Details

Journal of Criminal Psychology, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2009-3829

Keywords

Article
Publication date: 25 August 2023

Kirk Luther, Zak Keeping, Brent Snook, Hannah de Almeida, Weyam Fahmy, Alexia Smith and Tianshuang Han

The purpose of this study is to contribute to the literature on information elicitation. The authors investigated the impact of social influence strategies on eyewitness recall…

Abstract

Purpose

The purpose of this study is to contribute to the literature on information elicitation. The authors investigated the impact of social influence strategies on eyewitness recall performance. Specifically, the authors examined the effect of social influence techniques (Cialdini, 2007) on recall performance (Experiment 1) and conducted a follow-up experiment to examine the incremental effect of social proof on the report everything cognitive interview mnemonic (Experiment 2).

Design/methodology/approach

Participants watched a video depicting vandalism (Experiment 1: N = 174) or a verbal altercation (Experiment 2: N = 128) and were asked to recall the witnessed event. Experiment 1: Participants were assigned randomly to one of six conditions: control (open-ended prompt), engage and explain (interview ground rules), consistency (signing an agreement to work diligently), reciprocity (given water and food), authority (told of interviewer’s training) and social proof (shown transcript from an exemplar participant). Experiment 2: The authors used a 2 (social proof: present, absent) × 2 (report everything: present, absent) between-participants design.

Findings

Across both experiments, participants exposed to the social proof tactic (i.e. compared to a model exemplar) spoke longer and recalled more correct details than participants not exposed to the social proof tactic. In Experiment 2, participants interviewed with the report everything mnemonic also spoke longer, recalled more correct details, more incorrect details and provided slightly more confabulations than those not interviewed with the report everything mnemonic.

Originality/value

The findings have practical value for police investigators and other professionals who conduct interviews (e.g. military personnel, doctors obtaining information from patients). Interviewers can incorporate social proof in their interviewing practices to help increase the amount and accuracy of information obtained.

Details

Journal of Criminal Psychology, vol. 14 no. 1
Type: Research Article
ISSN: 2009-3829

Keywords

Article
Publication date: 25 July 2023

David Cavazos, Mathew Rutherford and Ali Shahzad

This study examines how firm product reputation functions as an internal and external expectations-setting mechanism shaping firm and external stakeholder behavior.

Abstract

Purpose

This study examines how firm product reputation functions as an internal and external expectations-setting mechanism shaping firm and external stakeholder behavior.

Design/methodology/approach

Longitudinal analysis of 17,879 recalls from 15 automobile manufacturers operating in the United States between 1967 and 2016.

Findings

Applying the behavioral theory of the firm (BTF) and signaling theory, this study’s findings suggest that product safety reputation creates variability in the likelihood of both voluntary and government-ordered recalls.

Research limitations/implications

Performance expectations set by past product performance influence managerial decision-making such that products with a higher reputation for quality are more likely to be voluntarily recalled than are their less reputable counterparts. Similarly, regulators are more likely to order the recall of higher reputation products, suggesting that past product performance also influences enforcement behavior. Finally, the scope and severity of product defects are shown to interact with product reputation to influence the likelihood of government-ordered recall.

Practical implications

Firms and firm stakeholders make distinct decisions based on performance variations within firm product portfolios.

Social implications

Overall firm reputation is important, but there are distinct dynamics that result in product performance variability within firm product portfolios that have important implications on issues such as product safety recalls.

Originality/value

This study's findings reveal that as an internal signal, managers' expectations of product performance can change their behavior following product safety defects. Specifically, voluntary product recalls are more likely for higher-reputation products than those with lower reputations for product safety. This suggests that firm behavior regarding product safety recalls is not consistent within their own product lines. Externally, this study’s findings suggest that product reputation also influences relationships with key stakeholders. Product reputation for quality was shown to be associated with an increased likelihood of government sanctions. Regulators will also be more likely to initiate punitive sanctions against higher-reputation products as the severity and scope of safety defects increase. Under such circumstances, higher-reputation products are more likely to face government sanctions than lower-reputation products. Hence, government regulatory behavior is subject to influence from performance signals such as product reputation.

Details

Management Decision, vol. 61 no. 11
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 19 July 2023

António Miguel Martins and Cesaltina Pacheco Pires

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

Abstract

Purpose

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

Design/methodology/approach

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.

Findings

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.

Practical implications

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.

Originality/value

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.

Details

Journal of Family Business Management, vol. 14 no. 2
Type: Research Article
ISSN: 2043-6238

Keywords

Article
Publication date: 15 May 2023

Dulanjana Gamage, Nisha Jayasuriya, Nilmini Rathnayake, Kithmini Minoma Herath, Diunugalge Peshala Seuvandi Jayawardena and Diluksha Yasith Senarath

The purpose of this paper is to compare the effect of marketing communication techniques concerning product placement and TV commercials on brand recall and the purchase intention…

Abstract

Purpose

The purpose of this paper is to compare the effect of marketing communication techniques concerning product placement and TV commercials on brand recall and the purchase intention of consumers.

Design/methodology/approach

A sample of 420 participants randomly assigned to one of the four scenarios of an experiment watched a selected episode of a Sri Lankan TV show that consisted of commercial breaks. Then, their recall and purchase intention toward the advertised/placed brand were measured using a questionnaire and binary logistic regression was the analytical tool.

Findings

This research indicated that a combination of product placement and TV commercials forms the highest impact on both brand recall and purchase intention. The next highest impact is created solely by product placement, while sole TV commercials make the lowest impact comparatively.

Practical implications

This study is beneficial to brands and entrepreneurs looking for the most effective marketing communication methods to promote their brands and products to consumers.

Originality/value

As an initial study performed on a comparison between two commonly used marketing communication techniques, i.e. product placement and TV commercials, in the Sri Lankan context would also enrich the global marketing literature on the comparative effectiveness of both techniques, where studies are limited so far.

Details

Journal of Asia Business Studies, vol. 17 no. 6
Type: Research Article
ISSN: 1558-7894

Keywords

Article
Publication date: 10 March 2023

Chiung-Wen Hsu

The author examined effects of endorser type and message framing on visual attention and ad effectiveness in health ads, including the moderator of involvement. This paper aims to…

Abstract

Purpose

The author examined effects of endorser type and message framing on visual attention and ad effectiveness in health ads, including the moderator of involvement. This paper aims to discuss this issue.

Design/methodology/approach

An experiment was conducted with a 2 (celebrity vs. expert) × 2 (positive vs. negative framing) between-subject factorial design. Eye-tracking measured visual attention and a questionnaire measured ad effectiveness and product involvement.

Findings

Experimental data from 78 responses showed no vampire effect in the health advertisements. Celebrity endorsement with negative message framing received more attention and had less ad recall than that with positive message framing. Negative and positive message framing attracted the same amount of attention and ad recall in the expert endorsement condition. High involvement participants paid more attention to the ad message with the expert than that with the celebrity, but ad recall was not significantly increased. Low involvement participants exhibited the same attention to the ad message with the expert and with the celebrity, but had greater recall of the ad message with the expert. Visual attention to the endorser was associated with ad attitude but not with ad recall. Ad attitude impacted behavioral intention.

Originality/value

Studies examining influences of celebrity and message framing on ad effectiveness have focused on the response to advertising stimuli, not the information process. The author provides empirical evidence of the viewers' information processing of endorsers and health messages, and its relationship with ad effectiveness. The study contributes to the literature by combining endorser and message framing in health ads to promote public health communication from the information processing perspective.

Details

Aslib Journal of Information Management, vol. 76 no. 3
Type: Research Article
ISSN: 2050-3806

Keywords

Article
Publication date: 30 January 2024

Ziyuan Xu, Yuanyuan Cao and Hirotaka Matsuoka

The impact of various factors on how TV sports audiences perceive sport event sponsors’ billboards around sports facilities has been the subject of extensive research. Despite…

Abstract

Purpose

The impact of various factors on how TV sports audiences perceive sport event sponsors’ billboards around sports facilities has been the subject of extensive research. Despite numerous factors that impact the effectiveness of sponsor signage at sporting events, there has been a lack of research regarding the language used for such signage around sports facilities’ billboards. Therefore, this study aims to investigate the effects of billboard advertisement language on TV sports audiences’ recognition, recall and search intention to sponsor signage.

Design/methodology/approach

This study employed an online experimental design. Participants (n = 925) were recruited from two linguistically different regions: Chinese and English. Participants were randomly assigned to one of two conditions: watching tennis video matches with billboard advertisements presented in either the Roman alphabet exclusively or in a combination of the Roman alphabet and Chinese characters.

Findings

This study revealed that although language cannot significantly impact audiences’ unaided recall of a brand, it does have a discernible effect on brand recognition and search intention among audiences. Additionally, people are more likely to search for brands in their native language. Participants from various regions tend to have different recognition rates and search intentions for sport sponsors.

Originality/value

This is the first manuscript examining the use of different languages in relation to audiences’ recognition and recall of sports sponsorship. It provides empirical evidence of the importance of carefully considering the language used in sponsor signage around stadium billboards to optimize the efficacy of sponsorships at sports events.

Details

Asia Pacific Journal of Marketing and Logistics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-5855

Keywords

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