Automotive recall risk: impact of buyer‒supplier relationship on supply chain social sustainability

Shereen Nassar, Tarek Taha Mohamed Kandil, Merve Kara, Abhijeet Ghadge

Research output: Contribution to journalArticle

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Abstract

Purpose
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.

Design/methodology/approach
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.

Findings
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.

Research limitations/implications
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.

Originality/value
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.

Original languageEnglish
JournalInternational Journal of Productivity and Performance Management
Early online date4 Oct 2019
DOIs
Publication statusE-pub ahead of print - 4 Oct 2019

Keywords

  • Social sustainability, buyer supplier relationship, product recalls, automotive recalls, interpretive structural modelling, supply chains

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