Search Conferences

Type in any word, words or author name. This searchs through the abstract title, keywords and abstract text and authors. You may search all conferences or just select one conference.

 All Conferences
 EMAC 2019 Annual Conference
 EMAC 2020 Annual Conference
 EMAC 2020 Regional Conference
 EMAC 2021 Annual Conference
 EMAC 2021 Regional Conference
 EMAC 2022 Annual
 EMAC 2022 Regional Conference
 EMAC 2023 Annual
 EMAC 2023 Regional Conference

EMAC 2020 Annual Conference

The Role of Volition in Firms' Management of Product-harm Crisis

Published: May 27, 2020


Peng Shen, Indiana University Bloomington; Vivek Astvansh, Indiana University


recall; crisis; self-regulation


In response to the recent surge in product-harm crises, lawmakers and business press have demanded the regulators to influence manufacturers’ decisions of announcing product recall, rather than let the manufacturers volitionally decide. Does an influenced recall achieve superior public safety outcomes, relative to a volitional recall? The authors draw attention to the actual outcome that is at stake here – completion, and not mere announcement, of recall. In the context of 727 vehicle recalls announced in the U.S. during 2013-2017 by 26 manufacturers, the study shows that relative to an influenced recall, a volitional recall improves the manufacturer’s recall planning. Improved planning, in turn, helps the manufacturer complete recall more promptly, thus yielding superior public safety outcome. The volition effect is stronger when the recall planning requires information that is internal to the manufacturer, but weaker when information is sourced externally. The results are robust to alternative model specifications, estimations, measures, and context (medical device recall). The evidence suggests that public safety is better preserved when the manufacturer is allowed to exercise volition in managing the crisis.