arbiter
JournalsAccount

Navigating product risk: the role of innovation culture and product governance

Yuyu Zhang et al.

Journal of Management Control2026https://doi.org/10.1007/s00187-026-00415-1article
AJG 2ABDC A
Weight
0.50

Abstract

Product risk represents a major operational risk, with significant consequences for a company. This study investigates whether corporate innovation culture affects product risk, measured by product controversies and recalls. Using data from US-listed companies between 2001 and 2018, we find that a stronger innovation culture is positively associated with increased product controversies and recalls. This effect is more pronounced in firms with innovation-oriented competitive strategies. However, management control and governance factors, including ISO9000 quality management system, vertical integration within the supply chain, and institutional investor ownership, can effectively mitigate these risks. Further, on average, the two opposite moderating effects offset each other. Overall, this study underscores the potential adverse effect of innovation culture on product risk and highlights the role of internal and external control measures in managing these operational challenges.

Open via your library →

Cite this paper

https://doi.org/https://doi.org/10.1007/s00187-026-00415-1

Or copy a formatted citation

@article{yuyu2026,
  title        = {{Navigating product risk: the role of innovation culture and product governance}},
  author       = {Yuyu Zhang et al.},
  journal      = {Journal of Management Control},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1007/s00187-026-00415-1},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

Navigating product risk: the role of innovation culture and product governance

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.