Abstract
This study constructs a supply chain network for Chinese listed firms from 2009 to 2021 and investigates the influence of the firm’s supply chain network position on cost stickiness. Our findings reveal that the supply chain network centrality exacerbates cost stickiness by increasing adjustment costs and agency problems, this effect applies to firms in both industrial and services sectors, and remains valid whether before and after the COVID-19 pandemic. Furthermore, high-quality internal controls and external audits can mitigate the effect of supply chain network centrality on cost stickiness. This study enriches the determinants of cost stickiness literature by providing evidence at the supply chain network level.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.