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Spillover Effect In Supplier Related Product Recall: The Impact Of Supplier Coo On Product Evaluations, Jianping Coco Huang, Jeffrey P. Radighieri

Research, Publications & Creative Work

Research has shown that supplier quality can lead to brand quality failures. However, what is not clear is whether a supplier’s country of origin (COO) plays a role in the evaluations of manufacturer brands after a recall is initiated. In this paper, through the lens of resource advantage (R-A) theory, we empirically examine whether a supplier’s COO hurts or helps the vehicle brand when a supplier is blamed during a vehicle recall event. R-A theory suggests that high brand quality can enhance competitive advantage for a firm. Through an experimental study, we find that high brand quality can override the …