Research Roundup: December 2024

Dive into our monthly Research Roundup, showcasing the latest insights from the business education community to keep you informed of new and noteworthy industry trends. Here are this month’s selections:

Forgiveness, Now in Green Packaging

• Researchers: Ali Tezer, HEC Montreal; Matthew Philip, Toronto Metropolitan University; Anshu Suri, University College Dublin
• Output: “The Greenguard Effect: When and Why Consumers React Less Negatively Following Green Product Failures,” Journal of the Academy of Marketing Science, 2023
• Overview: Can buying green products make people more forgiving? Recent research examines a fascinating behavioral trend the authors call the “greenguard effect,” where eco-friendly products influence how consumers judge companies facing public criticism. The study explores whether showcasing sustainability efforts, like environmentally friendly product lines, can shield businesses from the full impact of consumer backlash during crises.
  
  The team analyzed real-world cases and controlled experiments, examining how “perceived environmental responsibility” shifts consumer sentiment. This work adds to a growing body of research connecting corporate sustainability with consumer trust, shedding light on how companies can navigate reputational challenges in today’s socially conscious marketplace.
• Findings: The research reveals that consumers are 25 percent more likely to forgive companies with visible green initiatives than those without. For instance, participants rate businesses with eco-friendly product lines as more “socially responsible,” even when those companies face scandals unrelated to the products, like labor violations. This goodwill effect, driven by perceptions of environmental responsibility, is strongest among younger demographics and individuals who identify as eco-conscious.
  
  While sustainability efforts should be genuine and substantive, the findings highlight a pragmatic dimension: green products may serve as a reputational buffer, reducing the severity of public scrutiny. Business leaders can take note of this dual benefit, where sustainability aligns with both consumer preferences and risk management strategies, potentially strengthening long-term success.

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The Emotional Toll of Unpredictable Managers

• Researchers: Haoying Xu, Stevens Institute of Technology; Zhen Wang, Lingnan University; Sherry E. Moss and John J. Sumanth, Wake Forest University
• Output: “Jekyll and Hyde Leadership: Examining the Direct and Vicarious Experiences of Abusive and Ethical Leadership Through a Justice Variability Lens,” Journal of Applied Psychology, 2024
• Overview: Leadership can make or break workplace morale, but what happens when the same manager alternates between being supportive and abusive? This study examines the “Jekyll and Hyde” leadership phenomenon—when a manager swings between ethical guidance, like fostering open communication, and harmful behaviors.
  
  By studying over 600 employees in various roles, the research explores how this inconsistency affects worker performance and emotional well-being. Drawing from theories of justice variability and uncertainty management, the study reveals how unpredictable leadership disrupts employees’ perception of fairness. It also examines the direct effects of abusive supervisors on employees as well as the broader impact of employees observing senior managers mistreat their subordinates.
• Findings: Leaders who alternate between ethical and abusive behaviors cause more emotional exhaustion for employees than those who are consistently abusive. Employees subjected to this erratic behavior show reduced task performance, lower engagement in extra efforts, and decreased morale. Even employees who only observe this inconsistency, such as when senior managers mistreat their subordinates, experience emotional fatigue and uncertainty.
  
  These results underscore the importance of consistent and fair practices among business leaders for optimum employee productivity and well-being. Organizations should aim to train leaders to manage behaviors effectively and prevent damaging inconsistencies.

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From Burnout to Balance

• Researchers: Sharon K. Parker, Curtin University; Caroline Knight, University of Queensland
• Output: “Design Work to Prevent Burnout,” MIT Sloan Management Review, 2024
• Overview: Burnout has become a pressing concern in today’s fast-paced work environment, diminishing employee well-being and productivity. Recognizing this challenge, researchers from Curtin University and the University of Queensland developed the SMART Work Design model to help managers create more engaging and less stressful workplaces.
  
  Their goal was to identify key job characteristics that, when optimized, could enhance employee satisfaction and performance. By focusing on SMART aspects of work—Stimulating, Mastery, Agency, Relational connection, and Tolerable demands—the researchers aimed to provide a practical framework for designing jobs that promote employee well-being.
• Findings: The research reveals that jobs incorporating SMART characteristics significantly boost employee engagement and reduce stress. For instance, employees who perceive their work as stimulating and feel a sense of mastery report higher job satisfaction. Additionally, those experiencing agency and strong relational connections with colleagues demonstrate improved performance. Importantly, maintaining tolerable demands is linked to lower burnout rates.
  
  These findings suggest that business leaders can enhance employee well-being and productivity by thoughtfully designing roles aligned with the SMART model.

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Automating the Wrong Tasks

• Researchers: Stuart Mills and David A. Spencer, University of Leeds
• Output: “Efficient Inefficiency: Organizational Challenges of Realizing Economic Gains From AI,” Journal of Business Research, 2024
• Overview: Artificial intelligence (AI) is often celebrated as a revolutionary tool for boosting efficiency, but does it always deliver the expected benefits? Researchers at the University of Leeds suggest that it may not, introducing the concept of “efficient inefficiency.” This occurs when AI optimizes tasks with little or no productive value, limiting the overall economic impact.
  
  The study explores the persistence of such tasks in organizations, attributing them to managerial incentives, structural problems, and the difficulty of distinguishing essential work from unnecessary activities. Instead of focusing solely on making tasks more efficient, the researchers argue that organizations must evaluate whether those tasks should exist. This perspective offers new strategies for organizations looking to harness the full potential of AI.
• Findings: The study finds that AI often automates tasks without questioning the tasks’ value, leading to wasted resources. Persistent inefficiencies, such as status-driven decision-making or overly bureaucratic processes, are shown to divert AI’s potential from meaningful applications. Managers’ limited ability to process complex information, known as bounded rationality, further exacerbates the issue, resulting in misaligned AI applications.
  
  The researchers propose that organizational restructuring, such as flattening hierarchies and promoting shared decision-making, can reduce this inefficiency. While AI can aid in these processes, its deployment must align with genuine productivity goals rather than reinforcing existing inefficiencies. The findings encourage leaders to rethink how AI is adopted and the underlying value of the work it is assigned to support.

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When Familiarity Meets Innovation in Design

• Researchers: Chris Baumann, Macquarie University; Atsushi Akiike, Tohku University; Sotaro Katsumata, Osaka University; Tohru Yoshioka-Kobayashi, Hitotsubashi University
• Output: “How ‘Smart’ Should Smart Products Look? Exploring Boundary Conditions of the Most-Advanced-Yet-Acceptable (MAYA) Principle,” Journal of Business Research, 2024
• Overview: Striking the right balance between familiarity and innovation in product design is a powerful lever for influencing consumer choices. This study delves into how the appearance of smart products, like speakers and eyeglasses, shapes purchase intentions through the lens of the “most-advanced-yet-acceptable” (MAYA) principle.
  
  Researchers sought to uncover how design elements that blend traditional and cutting-edge aesthetics impact consumer preferences, particularly when moderated by the buyer’s knowledge of smart technology. By analyzing survey data from 400 respondents in Japan, the study examines how perceived “typicality,” or how representative a product looks for its category, affects purchasing decisions, providing actionable insights for optimizing product design.
• Findings: The study reveals a nuanced relationship between product appearance and consumer preferences. For knowledgeable consumers, designs with highly tech-driven appearances, which are viewed as strongly aligning with smart product characteristics, are most appealing. However, moderately typical designs that balance familiarity and innovation, exemplifying the MAYA principle, perform best for less knowledgeable consumers.
  
  These preferences underscore the importance of tailoring designs to different consumer segments. The findings also emphasize the strategic role of product design in bridging technological innovation and market acceptance.

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If you have new research from your school share with the business education community, please submit a summary and relevant links to AACSB Insights via our online submission form at aacsb.edu/insights/articles/submissions.