Business Strategy: A Study on Cost Stickiness Behavior

DOI

10.2991/insyma-18.2018.57How to use a DOI?

Keywords

Business strategy, defender, expense stickiness, prospector.

Abstract

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.

Copyright

© 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/).

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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  -