The effects of innovation on product recall likelihood
Abstract
Although the consequences of product recalls are well-documented in the literature, literature on the antecedents of recalls is lacking. This study investigates the effects of innovation practices on the likelihood of product recalls in the automotive industry. In doing so, we assess if pushing too hard on innovation can increase the risks that trigger recalls. We assess this potential by leveraging 284 make-year observations. The results demonstrate that innovation radicalness and product line breadth are positively associated with recalls. Furthermore, previous recall magnitude moderates the relationship between innovation radicalness and subsequent recalls. The authors find that the interaction of innovation radicalness and previous recall magnitude increases subsequent recalls, suggesting that firms that are already struggling with recalls can fall further behind by taking risks with their innovation strategy. The managerial and theoretical implications are discussed.
Department(s)
Marketing
Document Type
Article
DOI
10.1016/j.jbusres.2023.114452
Keywords
Automotive industry, Innovation, Organizational ecology, Product recalls
Publication Date
2-1-2024
Recommended Citation
Friske, Wesley; Cockrell, Seth; Voorhees, Clay M.; and Calantone, Roger J., "The effects of innovation on product recall likelihood" (2024). Faculty Scholarship. 412.
https://bearworks.missouristate.edu/articles00/412
Journal Title
Journal of Business Research
