Rajasekera, Jay
(2013)
Challenges To Toyota Caused By Recall
Problems, Social Networks And Digitisation.
Asian Academy of Management Journal (AAMJ), 18 (1).
pp. 1-17.
ISSN 1394-2603
Abstract
The recent recall problems that shook Toyota raised questions about the company's
openness with the public. Media attention and the intervention by governments in
Toyota's largest markets in North America, Europe, China, and Japan kept Toyota's
management in the spotlight. The crisis also exposed the power of social media. Although
authoritarian regimes can control social media, public companies cannot. They have to
live with it by either countering effectively when a crisis begins to brew or suffering the
consequences when it grows out of proportion. If Toyota manages social media
strategically, can it overcome the recall debacle and protect the reputation it has built
over decades as the top-quality automaker in the world? What challenges does the
increasingly digitalised auto industry present to Toyota? These are the main subjects of
this paper.
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