Business Strategy: A Study on Cost Stickiness Behavior
- 10.2991/insyma-18.2018.57How to use a DOI?
- Business strategy, defender, expense stickiness, prospector.
This paper examined the effect of firm-level business strategies on the stickiness of Selling and Administrative cost in manufacturing firms. It applied business strategies scoring model developed by Bentley et al. (2013). This model transforms the firm's financial data into business strategy classification based on Miles and Snow typology. This paper focused on prospectors and defender business strategy and its behavior regarding expense stickiness. Prospectors are characterized as innovation-oriented firms and tend to modify their product market-mix rapidly, while defenders are characterized as a more stable company that compete on the basis of price, and focusing on a narrow product base. This paper found that defender (less innovative) business strategy reduces the expense stickiness on Selling and Administrative expense. Such findings add the explanation in respect of asymmetric cost behavior such as the expense stickiness phenomenon.
- © 2018, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Permata Ayu Widyasari PY - 2018/03 DA - 2018/03 TI - Business Strategy: A Study on Cost Stickiness Behavior BT - Proceedings of the 15th International Symposium on Management (INSYMA 2018) PB - Atlantis Press SP - 232 EP - 235 SN - 2352-5398 UR - https://doi.org/10.2991/insyma-18.2018.57 DO - 10.2991/insyma-18.2018.57 ID - AyuWidyasari2018/03 ER -