How the introduction of new regulatory forms shapes firm self-regulation in the US automobile industry

Abstract

PurposeThe current research aims to explore how the implementation of new regulatory forms contributes to firm self-regulation.Design/methodology/approachLongitudinal analysis of firm-initiated product recalls for 15 manufacturers in the US automobile industry from 1966–2012.FindingsExamining firm-initiated product recalls for 15 manufacturers in the US automobile industry from 1966–2012 has several important findings regarding how the introduction of specific regulatory forms contributes to firm-initiated vehicle recalls. Firms are not likely to self-regulate in response to surveillance or standards-based regulation while information-based regulation results in a greater likelihood of firm self-regulation.Originality/valueThis result suggests that even at the product level; firms become increasingly motivated to self-regulate as regulators introduce information-based regulations.