Developing product recall capability through supply chain quality management

Abstract

Supply chain quality management (SCQM) has been viewed as a critical method for a manufacturer's management of product recalls. This study aims to empirically investigate the impact of SCQM practices on product recall capability using a sensemaking perspective. We adopt a multi-method approach by combining case study and quantitative survey methods. This study selects three manufacturers from the food, automobile and pharmaceutical industries to conduct an exploratory case study. The findings reveal that product recall capability includes tracking and traceability and formal process, and the manufacturers use quality management teamwork, supplier qualification and supplier involvement as the key SCQM practices. A conceptual framework of the relationships between SCQM practices and product recall capability is developed based on the findings of the case study. The hypotheses are empirically tested using structural equation modelling, bootstrapping method and data collected from 400 manufacturers in China. We find that quality management teamwork and supplier qualification are positively associated with product recall capability. Quality management teamwork is positively associated with supplier qualification and involvement. In addition, supplier qualification partially mediates the effect of quality management teamwork and fully mediates the effect of supplier involvement on product recall capability.