Effect of Supply Chain Quality Management on Performance ◾ 371
penalty. Because the company’s cost is reduced, it may be more willing to provide
higher compensation to aected customers.
H
4b
: Tracking and traceability will be positively related to recall compensation.
Top management is a company’s driving source of improvement. When top
management is committed to quality, a company is more likely to make proactive
recall decisions, when necessary, in order to protect its consumers.
H
4c
: Top management commitment to quality will be positively related to recall
proactiveness.
Moreover, when its top management is committed to quality, a company is
more likely to provide aected customers with meaningful compensation in the
event of a recall.
H
4d
: T ...