Supply chain responsiveness to product recalls

Organizations often have difficulty responding effectively to disruptions generated by relatively rare events, especially when they originate from the supply chain. Speed of response is, however, critical in dampening the impact of supply chain disruptions. We study the response time of the population of firms affects by the largest product recall in the history of the US agri-food industry: the outbreak of Salmonella at an ingredient supplier called Peanut Corporate of America (PCA) in 2009. Data is collected from product recall reports lodged by 462 firms along the supply chain. Results from moderated hierarchical regression analysis indicate that organizational learning, network position, and direct purchasing reduce the time taken for firms to respond to a supplier recall, while geographic distance between the supplier who announced the recall and the affected firm increases recall response time. Furthermore, information codification, voluntary recall procedures and recall severity moderate the relationship between geographical distance and recall response time.