 Learning from failure: The implications of product recalls for firm innovationJohn Ni, Alexander Borisov, Sachin Modi and Xiaowen Huang Journal of Supply Chain Management, 2023, vol. 59, issue 3, 42-64 Abstract: Existing research provides contrasting perspectives on the implications of product recalls for firms. While some studies find that recalls represent failures that can motivate firms to innovate, others suggest that the resource‐intensive nature of recalls may inhibit firms from innovating. This study presents a theoretical framework that reconciles these two perspectives by proposing an inverted U‐shaped relationship between a firm's product recall frequency and innovation output. The paper also evaluates the effect of the firm's growth potential on the recall frequency–innovation relationship. Analysis of data on vehicle recalls and recall‐related patents in the automotive sector from 1980 to 2019 confirms the inverted U‐shaped relationship and shows that the relationship is steepened by the growth potential of the firm. Overall, the study presents a more nuanced understanding of learning from product recalls and bridges the supply chain disruption and innovation literature in the context of product recall. Date: 2023 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:jscmgt:v:59:y:2023:i:3:p:42-64 Ordering information: This journal article can be ordered from Access Statistics for this article Journal of Supply Chain Management is currently edited by Lisa Ellram, Craig Carter and Chad Autry More articles in Journal of Supply Chain Management from Institute for Supply Management |
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