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Recall Whether consciously or unconsciously, automotive firms time their product recalls to minimize stock price penalties, resulting in unnecessary delays and clusters of subsequent recalls by other companies, according to new research from the University of Notre Dame. An initial recall by one firm prompts clusters of additional recalls in close proximity by competitor firms, according to “Hiding in the Herd: The Product Recall Clustering Phenomenon,” forthcoming in Manufacturing and Service Operations Management from Kaitlin Wowak, assistant professor of IT, analytics, and operations at Notre Dame’s Mendoza College of Business. Kaitlin Wowak The researchers analyzed 3,117 auto recalls over a 48-year period (1966-2013) using a model to investigate recall clustering, while categorizing recalls as leading or following within a cluster.

Karthik natarajanKaitlin wowakUjjal mukherjeeGeorge ballJason millerNotre dameIndiana universityService operations managementMendoza college of businessMichigan state universityDrug administrationUniversity of illinoisUniversity of notre dameUniversity of minnesotaTraffic safety administrationProduct recall clustering phenomenon