The effects of the news media on a firm's voluntary product recalls

Astvansh, Vivek; Wang, Yen‐Yao; Shi, Wei

doi:10.1111/poms.13821

Cited by 15 publications

(2 citation statements)

References 117 publications

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“…In contrast, an apology for inconvenience is ceremonial and may not matter to consumers. Similarly, one could analyze whether user-generated content in the wake of liability-invoking failures (Astvansh, Wang, and Shi 2022) varies across countries.…”

Section: Discussionmentioning

confidence: 99%

How Can Companies Recover from Liability-Invoking Failures? Exploring the Role of Uncertainty Avoidance in Facilitating Consumer Compliance Across National Cultures

Astvansh¹,

Duffek²,

Eisingerich³

2022

Journal of International Marketing

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A company often faces incidents in which its offerings cause bodily (e.g., product safety defects) or psychological (e.g., data breach) harm to its consumers. Such incidents may invoke product liability lawsuits against the company. The company may seek to recover from the liability-invoking failure by notifying the affected consumers, offering a remedy, and persuading them to comply with the company message. The authors theorize and experimentally demonstrate that, on average, a prevention-focused message receives greater compliance than a promotion-focused message. Further, a prevention-focused message is more effective with consumers from high uncertainty avoidance cultures, whereas a promotion-focused message is more effective in low uncertainty avoidance cultures. Perceived compatibility of prevention or promotion goals with low or high values of uncertainty avoidance mediates the interaction effect on compliance. The findings help companies overcome consumer apathy to product recall or data breach notices and offer managers ways to promote consumer safety and protection.

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Section: Discussionmentioning

confidence: 99%

How Can Companies Recover from Liability-Invoking Failures? Exploring the Role of Uncertainty Avoidance in Facilitating Consumer Compliance Across National Cultures

Astvansh¹,

Duffek²,

Eisingerich³

2022

Journal of International Marketing

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“…Corporate behaviors that the media deem inappropriate can lead to lost revenue for firms (Jonsson, Greve, and Fujiwara-Greve, 2009). Third, media coverage can release new information about firms to financial markets, such that investors trade differently depending on the coverage a firm receives (Bednar, 2012; Astvansh, Wang, and Shi, 2022).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

The New Invisible Hand: How Common Owners Use the Media as a Strategic Tool

DesJardine,

Shi,

Cheng

2023

Administrative Science Quarterly

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While research has uncovered an array of visible competitive dynamics, a strategic world of competition lies beneath the surface that should also be theorized and empirically traced. We investigate the strategic consequences of “media–rival” common ownership, in which investors own a media company and a non-media focal firm’s rivals. We posit that focal firms receive worse coverage from media outlets when institutional investors hold substantial ownership in both a media company and the focal firm’s rivals because the investors’ common holdings provide them with incentives and power to enhance the competitiveness of their portfolio firms by tainting the focal firm’s media coverage. We account for three moderators to show that this effect amplifies when investors have stronger incentives and power to influence the media and when media executives have incentives to cater to the interests of their investors. Using a novel dataset on common ownership of rival firms and media companies, we find support for our theory. Our study reveals a new invisible hand underlying competitive markets and offers a new view of the media as a strategic tool.

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Examining the role of single versus dual decision‐making approach for patient care: Evidence from cardiology patients

Goradia,

Chandrasekaran

2024

J of Ops Management

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Research in healthcare suggests that repeated interaction between a provider and a patient can support better decision‐making, resulting in improved efficiencies. To date, these repeated interactions enabling continuity of care have not been studied in hospital inpatient settings. During a hospital stay, decisions related to patient treatment are usually made by two key decision‐makers: the attending physician (AP) and the operating physician (OP). Under the single decision‐making approach (S‐DMA), the AP and OP are the same; in contrast, under the dual decision‐making approach (D‐DMA), the AP and OP are different. In recent years, there has been an increasing trend toward the use of D‐DMA over S‐DMA across U.S. hospitals owing to scheduling conflicts. Although research outside healthcare operations management has argued for benefits from both approaches, their impacts on a patient's hospital stay are unclear. In this study, we address this gap by investigating the effects of S‐DMA and D‐DMA on patient care outcomes in terms of patient length of stay (LOS), treatment cost, and mortality. Data for our study come from the state of Florida and involve 520,554 cardiology patients treated by 9483 APs and 18,398 OPs at 241 hospitals between 2014 and 2016. We account for both patient and physician selection issues when choosing a particular decision‐making strategy. Our results suggest that, on average, using S‐DMA is associated with reduced patient LOS and treatment cost but has no effect on mortality. We also find that S‐DMA is more beneficial for patients with low comorbidity and low process uncertainty, whereas D‐DMA is more beneficial for patients with high comorbidity and high process uncertainty. Our results are robust to alternative explanations. We demonstrate that a single decision‐maker offers benefits in the context of healthcare delivery, but dual decision‐makers may yield benefits when caring for patients with high comorbidity and high process complexity. We discuss the implications of these findings for appropriately deploying S‐DMA and D‐DMA in inpatient services.

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The effects of the news media on a firm's voluntary product recalls

Cited by 15 publications

References 117 publications

How Can Companies Recover from Liability-Invoking Failures? Exploring the Role of Uncertainty Avoidance in Facilitating Consumer Compliance Across National Cultures

How Can Companies Recover from Liability-Invoking Failures? Exploring the Role of Uncertainty Avoidance in Facilitating Consumer Compliance Across National Cultures

The New Invisible Hand: How Common Owners Use the Media as a Strategic Tool

Examining the role of single versus dual decision‐making approach for patient care: Evidence from cardiology patients

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