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Paper info: The Network Effects of a Major Product Recall: The Case of Takata

Title


The Network Effects of a Major Product Recall: The Case of Takata

Authors


Catherine Sutton-Brady
University of Sydney
Australia
Catherine Sutton-Brady and
Sheena Leek
University of Birmingham
United Kingdom
Sheena Leek

Place of Publication


The paper was published at the 34th IMP-conference in Marseille, France in 2018.

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Abstract


This paper investigates network change after a major worldwide product recall. Takata, a Japanese airbag manufacturer, was forced in 2015 to notify its’ customers of the need to recall millions of car worldwide. The impact on consumers of this recall has been wellpublicised and makes for harrowing reading, 23 confirmed deaths and 200 serious injuries worldwide as a result of the faulty airbags (Dowling 2018). This paper will look at its’ impact on the network of suppliers who used Takata airbags in their cars. The scale of the recall was unprecedented in automotive industry history, more than 100 million cars were affected across 24 brands but Honda, Toyota and Nissan had the highest number of affected airbags (Dowling 2018). By examining the relationships prior to the recall and those afterwards the change in the network will be shown. The paper will begin with an introduction to the industry and its major players, information on the recall will be presented and then the network change will be discussed drawing on theory of network change and dynamics.