Influence of institutional profiles on time to recall
Abstract
Purpose
This paper aims to understand why firms expedite or delay product recall decisions involving international sourcing.
Design/methodology/approach
This paper combines US toy recall data from the Consumer Products Safety Commission database for the period from 1988to 2011 with World Economic Forum data on institutional environments to predict the effect the host country conditions have on recall timing decisions.
Findings
Firms tend to expedite decisions to recall defective products sourced from countries where the informal institutional profile is perceived to be unfavorable for quality manufacture.
Research limitations/implications
The reported research is empirical in nature and uses pooled cross-country, single-industry data.
Practical implications
Managers should be careful not to allow their biases to affect their product recall timing decisions.
Originality/value
Whereas previous research has examined recall timing decisions, this study is the first to consider the institutional environment where products are sourced from as an explanatory variable.
Keywords
Acknowledgements
The authors thank the three anonymous reviewers for their detailed inputs and suggestions on the earlier versions of this paper. The authors also thank Manpreet Hora, Luis Angulo-Ruiz and Albena Perglova for their suggestions on the final versions of this paper. Finally, we acknowledge the inputs of reviewers and participants of the 2012 Conference of the Administrative Sciences Association of Canada at St. John’s, where this paper was first presented.
Citation
Muralidharan, E., Bapuji, H. and Laplume, A. (2015), "Influence of institutional profiles on time to recall", Management Research Review, Vol. 38 No. 6, pp. 605-626. https://doi.org/10.1108/MRR-12-2013-0293
Publisher
:Emerald Group Publishing Limited
Copyright © 2015, Emerald Group Publishing Limited