Document Type

Article

Digital Object Identifier (DOI)

10.1057/s42214-024-00189-0

Journal Title

Journal of International Business Policy

Publication Date

2024

Abstract

Regulations for product recalls differ internationally. In some countries, the responsibility rests entirely with manufacturers to quickly take corrective measures to ensure consumer safety. In other countries, penalties may also be imposed on consumers who persist in using products that have been recalled. We hypothesize that firm responsiveness (as measured by the time between the product release and the recall) will be higher in markets where product safety regulations that include consumer liability than in markets where product safety regulations focus solely on firms, and that firms that standardize their vehicles across such markets become more responsive in both those markets. We test our hypotheses using data on 569 automobile recalls issued during 2003 to 2019 in four different markets (the US, Australia, Germany, and the UK) that differ in their regulatory focus. Our empirical examination using survival analysis techniques with an accelerated failure time model confirms that the time to recall is shorter in countries that include consumer liability and for standardized vehicles that are sold across countries that include and exclude consumer liability.

Comments

The definitive article is available on the Springer Nature website at: https://link.springer.com/journal/42214.

Publisher Statement

This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/.

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