Examining firm self-regulation in the automobile industry: the role of situational factors, firm characteristics and association influence

Abstract

Purpose

The current study seeks to contribute to current self-regulation research by first exploring the association between the cost of self-regulation and firm self-regulation. The mediating role of association membership and firm slack is additionally explored.

Design/methodology/approach

Longitudinal analysis of firm-initiated product recalls for 15 manufacturers in the USA automobile industry from 1966 to 2012 has several important findings regarding the motivations for firm self-regulation.

Findings

The influence of industry associations and firm absorbed slack both contribute to firm self-regulation.

Originality/value

The current study begins to address the importance of firm characteristics in predicting self-regulation activities. The bulk of existing research has examined self-regulation at the industry level as an activity performed as a result of the adoption of formalized industry sanctioned standards of practice. This research contributes to such work by examining firm proactivity in the absence of such formal standards.

Citation

Cavazos, D.E. and Heller, N. (2022), "Examining firm self-regulation in the automobile industry: the role of situational factors, firm characteristics and association influence", Journal of Advances in Management Research, Vol. 19 No. 5, pp. 781-791. https://doi.org/10.1108/JAMR-09-2021-0298