Supply chain and operations management on the TMT: A study of recall propensity

Abstract

This study investigates the drivers of product quality failures as manifested through recalls. More specifically, this research develops theory regarding supply chain and operations management (SCOM) representation in organizational top management teams (TMT) and this representation's association with the frequency of recalls, the type of recalls, and the severity of recalls. The moderating effect of both recent and historical organizational recall knowledge is also explored. This study uses unique data sets, collected from multiple sources, containing executives' backgrounds, firm characteristics, and product recalls. The study finds that firms with SCOM representation on their TMTs have fewer recalls overall and fewer severe recalls. We also find that firms with SCOM representation on the TMT are less likely to suffer from subsequent recalls after a history of recalling. Lastly, we discover interesting nuances with respect to the form of SCOM representation present on the TMT (CEO and functional executive).

Supply chain representation on the board of directors and firm performance: A balance of relational rents and agency costs

“…This study contributes to operations strategy research by conceptualizing the BoD as a tool to co‐opt supply chain partners and generate relational rents. In so doing, we build on prior work at the intersection of organizational upper echelons and OSCM that has shown the value of prioritizing operations and supply chain management at a strategic level (e.g., Hendricks et al, 2015; Kumar & Paraskevas, 2018; Paraskevas et al, 2023; Roh et al, 2016) and leadership connections to supply chain partner firms (Ambulkar et al, 2023; Bommaraju et al, 2019; Potter & Paulraj, 2020). We extend this stream by evaluating the performance implications when sourcing a board member directly from a supply chain partner.…”

“…Subsequent research further examined the role of individual-level characteristics of executives in the TMT. For example, Kumar and Paraskevas (2018) and Paraskevas et al (2023) found that TMTs comprised of executives with prior work experience in supply chain management are more likely to pursue pro-environmental strategies and implement product recalls, respectively. Mayo et al (2022) similarly related organizational leadership to major operational decisions, finding that CEO tenure decreased the likelihood of product recalls.…”

“…There is a thriving stream of literature dedicated to the study of organizational upper echelons (UE), including both top management teams (TMT) and BoDs (Garner et al, 2017; Tihanyi et al, 2014; Withers, Hillman, et al, 2012). Organizational leadership decisions affect firms' strategic behavior and, ultimately, performance (e.g., Falcone et al, 2022; Khanna et al, 2014; Muttakin et al, 2018; Paraskevas et al, 2023). While the strategic importance of supply chain management is well recognized in research (e.g., Ralston et al, 2017; Revilla & Villena, 2012), studies at the intersection of upper echelons and OSCM have only recently started to gain momentum.…”

“…This research contributes to the OSCM literature at the intersection of organizational upper echelons and supply chain management. While this stream has received increasing attention, extant research has primarily focused on intrinsic qualities of organizational leadership such as experience working in functional operations management or supply chain management roles (e.g., Hendricks et al, 2015; Kumar & Paraskevas, 2018; Paraskevas et al, 2023; Roh et al, 2016). A limited number of studies have explored the effects of extrinsic ties to supply chain partner firms in terms of board members' affiliations—broadly defined in terms of direct or indirect linkages via employment, investment, or familial ties—with either customer firms (Bommaraju et al, 2019) or supplier firms (Ambulkar et al, 2023).…”

Unobserved variables in archival research: Achieving both theoretical and statistical identification

“…The final four manuscripts are diverse in motivation, but all have important L&SCM strategy considerations. First, Paraskevas et al (2023) present, "Supply Chain and Operations Management on the TMT: A Study of Recall Frequency". Top management teams are becoming more involved in L&SCM, so this is a very timely study.…”