Costello College of Business Faculty Research

Hierarchy has its upsides and downsides. A pyramidical power structure works well for day-to-day decision making. But as the distance between the base and the tip of the pyramid increases, tensions between organizational tiers can create obstacles to reform. It’s a matter of “the unconscious dynamics of humans in groups and systems” rather than a deliberate response, says Renee Rinehart Kathawalla, a postdoctoral research fellow of management at Mason.

In business, a specialist strategy can sometimes be riskier than a generalist one. Competing in only one industry leaves firms highly vulnerable to heightened income volatility, with extreme gains and losses, often alternating in quick succession. Innovative firms, whose business models are based on heavy R&D investments with uncertain returns, are especially affected by these fluctuations. Kelly Wentland, assistant professor of accounting, discusses this issue.

Government corruption has universally corrosive effects on U.S. society. Yet there is little uniformity to the structure of state-level corruption oversight agencies. Syrena Shirley, an assistant professor of accounting at Mason, recently published a research paper in Current Issues in Auditing suggesting that in the fight against corruption, these structural inconsistencies are impactful.

These days, devising an outsourcing strategy involves a host of challenges and opportunities. Between deglobalization and pandemic-induced supply chain issues, the 20th century practice of moving manufacturing to wherever labor was cheapest is paying smaller and smaller dividends. As the value proposition of cost-cutting diminishes, a different rationale for outsourcing—one based upon maximizing synergies—is gaining traction. Cheryl Druehl, associate professor of operations management and associate dean for faculty at Mason, lays out a model to help managers think about how to outsource in this new world in her recently published paper in IEEE Transactions on Engineering Management.

In the earliest stage of innovation, creative proposals are judged according to their perceived novelty and usefulness. Sharaya Jones, assistant professor of marketing at Mason, has a simple yet counterintuitive rule for would-be innovators hawking their ideas: More is more. Her recent paper in Marketing Science, co-authored by Laura J. Kornish of University of Colorado Boulder, pits verbose and detailed idea descriptions against terse ones.

Einav Hart, an assistant professor of management at George Mason University’s School of Business, shows the economic implications of negotiators’ relationships, and how these economic implications affect how people negotiate. Her recent paper in Organizational Behavior and Human Decision Processes (co-authored with Maurice Schweitzer at the Wharton School of the University of Pennsylvania) introduces the construct “ERRO” (the Economic Relevance of negotiators’ Relational Outcomes) to shed light on when negotiators should consider their future relationships.

According to a recent working paper co-authored by Mason finance professors Lei Gao and Bo Hu, more than 80 percent of U.S. public firms use graphics in their annual reports. Further, visual presentation has market benefits as well as aesthetic ones.

Bret Johnson, assistant professor of accounting at Mason, recently co-authored a paper in Management Science finding that SEC comment letters are leaking out among investors close to the company concerned, who then use it to their advantage. Technically, such information-sharing violates Regulation Fair Disclosure (FD), which prohibits companies from sharing secrets with network partners such as institutional investors and analysts.

Turbulent times are challenging for decision-makers in business. This pervasive condition scholars call economic policy uncertainty (EPU) can turn a wise move into a costly one virtually overnight and is known to weigh on firm innovation, investments and value. When confronting EPU, what’s a firm to do? Saurabh Mishra, professor and area chair of marketing at Mason, and co-authors explores that question.

Brad Greenwood, associate professor of information systems and operations management at George Mason University School of Business, and coauthors recently launched a research study that is forthcoming at Information Systems Research that explores what happens to a community’s abortion rates when a workaround for capital constraints becomes available.