Journal article
Suppliers' Product Market Competition, Customer Concentration, and Cost Structure
Journal of management accounting research, v 33(3), pp 9-27
01 Sep 2021
Abstract
We examine how suppliers' product market competition influences the relation between customer concentration and cost structure. Analyzing cost data from a sample of manufacturing firms, we find that suppliers exhibit more rigid cost structure when both product market competition and customer concentration are high. In further analysis, we find that the effect of competition on the relationship between customer concentration and cost structure is isolated to the COGS and COGM. Our results suggest that suppliers trade off the downside risk of having fixed costs that cannot be reassigned with the potential upside benefit of meeting major customer demands.
Metrics
Details
- Title
- Suppliers' Product Market Competition, Customer Concentration, and Cost Structure
- Creators
- Hsihui Chang - Drexel UniversityCurtis M. Hall - Drexel UniversityMichael T. Paz - Cornell University
- Publication Details
- Journal of management accounting research, v 33(3), pp 9-27
- Publisher
- Amer Accounting Assoc
- Number of pages
- 19
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Accounting
- Web of Science ID
- WOS:000719969900002
- Scopus ID
- 2-s2.0-85118958690
- Other Identifier
- 991019168209904721
InCites Highlights
Data related to this publication, from InCites Benchmarking & Analytics tool:
- Collaboration types
- Domestic collaboration
- Web of Science research areas
- Business, Finance