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/approachA 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.FindingsThe 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/implicationsFollowing 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/valueThis 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.
International Journal of Productivity and Performance Management – Emerald Publishing
Published: Apr 9, 2020
Keywords: Sustainability; Collaboration; Business performance; Automotive industry
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