Journal article
Strategic Similarity and Investment Efficiency
Journal of accounting, auditing & finance, 0148558X251378279
11 Sep 2025
Abstract
We examine whether sharing similar business strategies between suppliers and customers increases suppliers' investment efficiency. Using a data set of U.S. supplier-customer dyads, we posit and find that sharing strategic objectives with major customers is associated with higher-quality supplier investment decisions. Specifically, strategic similarity between supply chain partners is associated with a lower likelihood of underinvestment and overinvestment by suppliers. We also find that strategic similarity improves supplier investment decisions when the customer's information environment is weak. In addition, our cross-sectional analyses show that strategic similarity is associated with higher investment efficiency for suppliers in durable goods industries and for those with customers who are likely to switch to other suppliers.
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Details
- Title
- Strategic Similarity and Investment Efficiency
- Creators
- Hsihui Chang - Drexel University, AccountingRong-Ruey Duh - Theodore Roosevelt High SchoolLin-Hui Yu - National Taiwan UniversityYaou Zhou - Montclair State Univ, Feliciano Sch Business, Dept Accounting & Finance, Montclair, NJ USA
- Publication Details
- Journal of accounting, auditing & finance, 0148558X251378279
- Publisher
- Sage
- Number of pages
- 27
- Grant note
- National Science and Technology Council
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Accounting
- Web of Science ID
- WOS:001569442200001
- Scopus ID
- 2-s2.0-105015387049
- Other Identifier
- 991022097939404721
InCites Highlights
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- Collaboration types
- Domestic collaboration
- International collaboration
- Web of Science research areas
- Business, Finance