A Strategic Analysis of Product Recalls: The Role of Moral Degradation and Organizational Control

14 Pages Posted: 14 Jul 2008

See all articles by Yadong Luo

Yadong Luo

University of Miami - Department of Management

Abstract

Although product recalls are neither new nor unique to China, China bears much of the bitter criticism from the media and negative reactions from the public. This essay discusses the reasons behind recalls from a moral degradation perspective, grounded in the larger framework of anomie theory. While making remarkable economic progress, China is also moving toward a society with degraded moral standards. This moral degradation propels illicit and immoral business practices. This essay further presents an analysis of recall from the organizational control perspective, tackling the issue of how safety and quality problems damage a firm's long-term corporate credibility, legitimacy, trust and governance in a competitive environment. Strategic repercussions of recalls include impairing capability building, organizational learning and resource allocation. The essay ends with a call for action by the Chinese government, firms and management researchers to address and further understand this complex issue.

Suggested Citation

Luo, Yadong, A Strategic Analysis of Product Recalls: The Role of Moral Degradation and Organizational Control. Management and Organization Review, Vol. 4, Issue 2, pp. 183-196, July 2008, Available at SSRN: https://ssrn.com/abstract=1158770 or http://dx.doi.org/10.1111/j.1740-8784.2008.00104.x

Yadong Luo (Contact Author)

University of Miami - Department of Management ( email )

United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
7
Abstract Views
1,094
PlumX Metrics