Why and when firms respond accommodatively to the product-harm crisis: An institutional perspective |
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| Institution: | 1. School of Economics and Management, Nanjing University of Science and Technology, Nanjing, China. 200 Xiaolingwei Road, Nanjing, Jiangsu Province, 210094, PR China;2. Department of Business Administration, Nanjing University of Finance and Economics, Nanjing, China. 3 WenYuan Road, Nanjing, Jiangsu Province, 210023, PR China;3. School of Management, University of Science and Technology of China, 96 Jinzhai Road, Hefei, Anhui Province, 230026, PR China;1. Federal Institute of Education, Science and Technology of Rio Grande do Sul, Veranópolis, RS, Brazil;2. School of Management, Federal University of Rio Grande do Sul (UFRGS), Porto Alegre, RS, Brazil;3. Massachusetts Institute of Technology (MIT), Media Lab, Sociotechnical Systems Research Center, Cambridge, MA, USA;1. Aeronautics Institute of Technology - ITA, Praça Marechal Eduardo Gomes 50, Vila das Acácias, São José dos Campos, SP, 12228-900, Brazil;2. Federal University of Goiás - UFG, Faculty of Science and Technology, Mucuri S/N - Setor Conde dos Arcos - Aparecida de Goiânia Campus, GO, 74968-755, Brazil;1. Business School, Zhengzhou University, Zhengzhou, China;2. School of Management, Harbin Institute of Technology, Harbin, China;1. Department of Marketing, Honorary Professor of International Studies, McCoy College of Business, Texas State University, 601 University Drive, McCoy Hall – Office 424D, San Marcos, TX, 78666, USA;2. Department of Mgmt., Mktg., & I.S., College of Business Administration, Sam Houston State University, SHSU Box 2056, Huntsville, TX, 7734, USA;3. Marketing Department, College of Business, Florida Atlantic University, 3200 College Avenue Davie, FL, 33314, USA;1. Department of Industrial and Information Management, Center for Innovative FinTech Business Models, National Cheng Kung University, Taiwan;2. Department of Industrial Management and Enterprise Information, Aletheia University, Taiwan;3. Department of Industrial and Information Management, National Cheng Kung University, Taiwan |
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| Abstract: | Accommodative response, as an attempt to manage product-harm crises to meet consumers' expectations by proactively accepting responsibility and actively taking remedial actions, is gradually becoming institutionalized. Our research explores the impacts of coercive, mimetic, and normative pressure on a firm's accommodating reaction and evaluates the possible mediating effects of top management beliefs (TMB) and participation (TMP), based on institutional theory and upper management echelons theory. The proposed hypotheses are empirically examined with survey data from 178 top managers in Chinese automobile firms. The potential endogeneity problem has been tackled by using firm size as the appropriate instrumental variable. Analysis results suggest that the three types of institutional pressures affect TMB and TMP differently, and TMP influences accommodative response positively while TMB exerts an indirect effect through TMP. Our findings emphasize the crucial mediating effects of top management and uncover the underlying mechanism through which institutional pressures affect accommodative response. |
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| Keywords: | Product-harm crises Product recall Institutional pressure Top management |
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