IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-04585956.html
   My bibliography  Save this paper

Looking at the relationship between growth and profitability: the role of cost stickiness as a strategic liability

Author

Listed:
  • Vivien Lefebvre

    (LARGE - Laboratoire de Recherche en Gestion et Economie - UNISTRA - Université de Strasbourg)

Abstract

No abstract is available for this item.

Suggested Citation

  • Vivien Lefebvre, 2024. "Looking at the relationship between growth and profitability: the role of cost stickiness as a strategic liability," Post-Print hal-04585956, HAL.
    • Handle: RePEc:hal:journl:hal-04585956
    DOI: 10.1108/JAOC-06-2023-0107
    Note: View the original document on HAL open archive server: https://hal.science/hal-04585956v1
    as

    Download full text from publisher

    File URL: https://hal.science/hal-04585956v1/document
    Download Restriction: no
    File URL: https://libkey.io/10.1108/JAOC-06-2023-0107?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Anton, Sorin Gabriel & Nucu, Anca Elena Afloarei, 2022. "On the role of institutional factors in shaping working capital management policies: Empirical evidence from European listed firms," Economic Systems, Elsevier, vol. 46(2).
    2. Nicholas Argyres & Joseph T. Mahoney & Jackson Nickerson, 2019. "Strategic responses to shocks: Comparative adjustment costs, transaction costs, and opportunity costs," Strategic Management Journal, Wiley Blackwell, vol. 40(3), pages 357-376, March.
    3. Claudiu Boțoc & Sorin Gabriel Anton, 2017. "Is profitability driven by working capital management? evidence for high-growth firms from emerging Europe," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 18(6), pages 1135-1155, November.
    4. Marvin B. Lieberman & Gwendolyn K. Lee & Timothy B. Folta, 2017. "Entry, exit, and the potential for resource redeployment," Strategic Management Journal, Wiley Blackwell, vol. 38(3), pages 526-544, March.
    5. Christos N. Pitelis, 2007. "A Behavioral Resource-Based View of the Firm: The Synergy of Cyert and March (1963) and Penrose (1959)," Organization Science, INFORMS, vol. 18(3), pages 478-490, June.
    6. Richard J. Arend, 2004. "The Definition of Strategic Liabilities, and their Impact on Firm Performance," Journal of Management Studies, Wiley Blackwell, vol. 41(6), pages 1003-1027, September.
    7. Thomas C. Powell, 2001. "Competitive advantage: logical and philosophical considerations," Strategic Management Journal, Wiley Blackwell, vol. 22(9), pages 875-888, September.
    8. Christian Kuiate & Thomas R. Noland, 2019. "Attracting and retaining core competency: a focus on cost stickiness," Journal of Accounting & Organizational Change, Emerald Group Publishing Limited, vol. 15(4), pages 678-700, November.
    9. Todd A. Gormley & David A. Matsa, 2014. "Common Errors: How to (and Not to) Control for Unobserved Heterogeneity," The Review of Financial Studies, Society for Financial Studies, vol. 27(2), pages 617-661.
    10. Qian, Gongming, 2002. "Multinationality, product diversification, and profitability of emerging US small- and medium-sized enterprises," Journal of Business Venturing, Elsevier, vol. 17(6), pages 611-633, October.
    11. Richard P. Rumelt & Dan Schendel & David J. Teece, 1991. "Strategic management and economics," Strategic Management Journal, Wiley Blackwell, vol. 12(S2), pages 5-29, December.
    12. Mark C. Anderson & Rajiv D. Banker & Surya N. Janakiraman, 2003. "Are Selling, General, and Administrative Costs “Sticky”?," Journal of Accounting Research, Wiley Blackwell, vol. 41(1), pages 47-63, March.
    13. Richard Makadok, 1999. "Interfirm differences in scale economies and the evolution of market shares," Strategic Management Journal, Wiley Blackwell, vol. 20(10), pages 935-952, October.
    14. Alex Coad & Marc Cowling & Josh Siepel, 2017. "Growth processes of high-growth firms as a four-dimensional chicken and egg," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 26(4), pages 537-554.
    15. Alexander McKelvie & Johan Wiklund, 2010. "Advancing Firm Growth Research: A Focus on Growth Mode Instead of Growth Rate," Entrepreneurship Theory and Practice, , vol. 34(2), pages 261-288, March.
    16. Chen, Zhiyao & Harford, Jarrad & Kamara, Avraham, 2019. "Operating Leverage, Profitability, and Capital Structure," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 54(1), pages 369-392, February.
    17. Marvin Lieberman, 2022. "Sunk Costs and Concentration in Homogeneous Product Industries," Strategy Science, INFORMS, vol. 7(2), pages 106-119, June.
    18. Ronny Prabowo & Reggy Hooghiemstra & Paula Van Veen-Dirks, 2018. "State Ownership, Socio-political Factors, and Labor Cost Stickiness," European Accounting Review, Taylor & Francis Journals, vol. 27(4), pages 771-796, August.
    19. Silberston, Aubrey, 1972. "Economies of Scale in Theory and Practice," Economic Journal, Royal Economic Society, vol. 82(325), pages 369-391, Supplemen.
    20. Delmar, Frederic & Davidsson, Per & Gartner, William B., 2003. "Arriving at the high-growth firm," Journal of Business Venturing, Elsevier, vol. 18(2), pages 189-216, March.
    21. Thomas H. Brush & Philip Bromiley & Margaretha Hendrickx, 2000. "The free cash flow hypothesis for sales growth and firm performance," Strategic Management Journal, Wiley Blackwell, vol. 21(4), pages 455-472, April.
    22. Yuri Mishina & Timothy G. Pollock & Joseph F. Porac, 2004. "Are more resources always better for growth? Resource stickiness in market and product expansion," Strategic Management Journal, Wiley Blackwell, vol. 25(12), pages 1179-1197, December.
    23. Jay J. Ebben & Alec C. Johnson, 2005. "Efficiency, flexibility, or both? Evidence linking strategy to performance in small firms," Strategic Management Journal, Wiley Blackwell, vol. 26(13), pages 1249-1259, December.
    24. Gogineni, Sridhar & Linn, Scott C. & Yadav, Pradeep K., 2022. "Vertical and Horizontal Agency Problems in Private Firms: Ownership Structure and Operating Performance," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 57(4), pages 1237-1278, June.
    25. Raffaele Morandi Stagni & Juan Santaló & Marco S. Giarratana, 2020. "Product‐market competition and resource redeployment in multi‐business firms," Strategic Management Journal, Wiley Blackwell, vol. 41(10), pages 1799-1836, October.
    26. Omer Majeed & Antonio Balaguer & David Hansell & Luke Hendrickson & Abasi Latcham & Tessa Satherley, 2021. "What Drives High Growth? Characteristics of Australian Firms," The Economic Record, The Economic Society of Australia, vol. 97(318), pages 350-364, September.
    27. Lisa Silge & Arnt Wöhrmann, 2021. "Market reaction to asymmetric cost behavior: the impact of long-term growth expectations," Review of Managerial Science, Springer, vol. 15(2), pages 309-347, February.
    28. Banker, Rajiv D. & Byzalov, Dmitri & Chen, Lei (Tony), 2013. "Employment protection legislation, adjustment costs and cross-country differences in cost behavior," Journal of Accounting and Economics, Elsevier, vol. 55(1), pages 111-127.
    29. Dean Shepherd & Johan Wiklund, 2009. "Are we Comparing Apples with Apples or Apples with Oranges? Appropriateness of Knowledge Accumulation across Growth Studies," Entrepreneurship Theory and Practice, , vol. 33(1), pages 105-123, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Naoum, Vasilios-Christos & Ntounis, Dimitrios & Papanastasopoulos, Georgios & Vlismas, Orestes, 2023. "Asymmetric cost behavior: Theory, meta-analysis, and implications," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 53(C).
    2. Alex Coad & Stjepan Srhoj, 2020. "Catching Gazelles with a Lasso: Big data techniques for the prediction of high-growth firms," Small Business Economics, Springer, vol. 55(3), pages 541-565, October.
    3. Merissa C. Piazza & Edward (Ned) Hill, 2021. "Not All High-Growth Firms Are Alike: Capturing and Tagging Ohio’s Gazelles," Economic Development Quarterly, , vol. 35(3), pages 219-231, August.
    4. Florian Léon, 2022. "The elusive quest for high-growth firms in Africa: when other metrics of performance say nothing," Small Business Economics, Springer, vol. 58(1), pages 225-246, January.
    5. Mohammed Arkan Sahib Tileal & Farzaneh Nassirzadeh & Mohammad Javad Saei & Davood Askarany, 2023. "The Impact of Ownership Type on Labour Cost Stickiness," JRFM, MDPI, vol. 16(5), pages 1-17, May.
    6. Josep M. Argilés-Bosch & Josep Garcia-Blandón & Diego Ravenda & Mónica Martínez-Blasco, 2018. "An empirical analysis of the curvilinear relationship between slack and firm performance," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 29(3), pages 361-397, December.
    7. Demir, Robert & Wennberg, Karl & McKelvie, Alexander, 2016. "The Strategic Management of High-Growth Firms: A Review and Theoretical Conceptualization," Ratio Working Papers 273, The Ratio Institute.
    8. Juan Federico & Joan-Lluis Capelleras, 2015. "The heterogeneous dynamics between growth and profits: the case of young firms," Small Business Economics, Springer, vol. 44(2), pages 231-253, February.
    9. Hernández, Virginia & Nieto, María Jesús, 2016. "Inward–outward connections and their impact on firm growth," International Business Review, Elsevier, vol. 25(1), pages 296-306.
    10. Wennberg, Karl & Delmar, Frédéric & McKelvie, Alexander, 2016. "Variable risk preferences in new firm growth and survival," Journal of Business Venturing, Elsevier, vol. 31(4), pages 408-427.
    11. Yannis Caloghirou & Ioannis Giotopoulos & Alexandra Kontolaimou & Aggelos Tsakanikas, 2022. "Inside the black box of high-growth firms in a crisis-hit economy: corporate strategy, employee human capital and R&D capabilities," International Entrepreneurship and Management Journal, Springer, vol. 18(3), pages 1319-1345, September.
    12. Chen, Yan & Du, Kerui & Sun, Ruiqi & Wang, Tiantian, 2025. "Can strict environmental regulation reduce firm cost stickiness? Evidence from the new environmental protection law in China," Energy Economics, Elsevier, vol. 142(C).
    13. Alex Coad & Sven-Olov Daunfeldt & Dan Johansson & Karl Wennberg, 2014. "Whom do high-growth firms hire?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 23(1), pages 293-327, February.
    14. Fabio Bertoni & Massimo Colombo & Luca Grilli, 2013. "Venture capital investor type and the growth mode of new technology-based firms," Small Business Economics, Springer, vol. 40(3), pages 527-552, April.
    15. Cristiana Cattaneo & Gaia Bassani, 2020. "Sticky costs: le determinanti e le sfide per manager e accademici," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2020(Suppl. 1), pages 103-126.
    16. Mabel D Costa & Ahsan Habib, 2023. "Cost stickiness and firm value," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 34(2), pages 235-273, June.
    17. Mula, Claire & Zybura, Nora & Hipp, Thomas, 2024. "From digitalized start-up to scale-up: Opening the black box of scaling in digitalized firms towards a scaling process framework," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    18. Fangjun Wang & Lizhu Ma & Baojun Gao & Yang S Liu, 2024. "Does high-speed railway affect the cost behavior of tourism firms? Evidence from China," Tourism Economics, , vol. 30(1), pages 212-235, February.
    19. Canarella, Giorgio & Miller, Stephen M., 2018. "The determinants of growth in the U.S. information and communication technology (ICT) industry: A firm-level analysis," Economic Modelling, Elsevier, vol. 70(C), pages 259-271.
    20. Alexander McKelvie & Johan Wiklund, 2010. "Advancing Firm Growth Research: A Focus on Growth Mode Instead of Growth Rate," Entrepreneurship Theory and Practice, , vol. 34(2), pages 261-288, March.

    More about this item

    Keywords

    G31 -G32 -L25 Cost structure rapid growth profitability strategic liability SMEs sticky costs; G31 -G32 -L25 Cost structure; rapid growth; profitability; strategic liability; SMEs; sticky costs;
    All these keywords.

    JEL classification:

    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-04585956. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.