This study investigates simultaneous linkages between outsourcing, in‐house offshoring, sales to emerging markets, inventory and product recalls. The study finds a positive and significant association between outsourcing to emerging markets and recalls and that sales penetration into emerging markets reduces recalls; however, it finds no direct relationship between in‐house offshoring and recalls. Interestingly, in‐house offshoring to emerging markets appears to mitigate the positive relationship between outsourcing to these markets and recalls; this suggests that transactional complexities of outsourcing to emerging markets are mitigated by a physical presence in the market. This important finding suggests that by keeping some operations in‐house, firms may reduce the negative effect of outsourcing on product quality and safety while reaping low‐cost benefits of sourcing from these emerging markets. Additionally, the results indicate that institutional immaturities within recipient countries (associated with outsourcing) are primary contributors to inefficiencies affecting quality performance. On the inventory side, sourcing from emerging markets negatively affects inventory performance. Although inventory performance typically does not appear to be related to recalls, finished goods inventory is positively associated with quality failures.

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We study an important but widely neglected topic in humanitarian operations: armed conflicts. Specifically, this paper empirically analyzes the effect of armed conflicts on the operational performance of first-layer response organizations. Using as a case study the Colombian conflict we investigate the effect of conflict on public rural hospitals' (i) total factor productivity, (ii) efficiency and (iii) efficiency variability. The panel data set (2007e2011) used in this study includes information at the hospital level for 163 hospitals and qualitative data collected from interviews with medical staff from the Colombian Ministry of Health and hospitals in different conflict zones. Our results indicate that armed conflict has a positive effect on total factor productivity, while it has a negative impact on hospital efficiency, and interestingly that efficiency and total factor productivity both increase in post conflict. Finally, the results show that efficiency variability is higher in peace and post-conflict hospitals and lower in medium and severe-conflict hospitals. These results have operations management implications and opportunities for future research related to sourcing decisions, supply chain and workforce flexibility, behavioral impacts on the workforce, and humanitarian response to conflicts.

This study examines the relationship between a motor carrier's financial position and its safety performance. New evidence is provided regarding this relationship. Data were taken from the Motor Carrier Safety Status Measurement System (SafeStat) database and the Motor Carriers Annual Reports dataset. The sample has 657 carriers across all major industry segments. Negative binomial regression and multiple regression analysis were applied to obtain the results. The results provide evidence to indicate that a stronger financial position in a previous year is significantly associated with better safety performance in a subsequent year.