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Issue 5(1), October 2010 -- Paper Abstracts
Girard  (p. 9-22)
Cooper (p. 23-32)
Kunz-Osborne (p. 33-41)
Coulmas-Law (p.42-46)
Stasio (p. 47-56)
Albert-Valette-Florence (p.57-63)
Zhang-Rauch (p. 64-70)
Alam-Yasin (p. 71-78)
Mattare-Monahan-Shah (p. 79-94)
Nonis-Hudson-Hunt (p. 95-106) 



JOURNAL OF APPLIED BUSINESS AND ECONOMICS


The Impact of Business Strategy on Cost Management


Author(s): Yan Yan

Citation: Yan Yan, (2021) "The Impact of Business Strategy on Cost Management," Journal of Applied Business and Economics, Vol. 23, Iss.2,  pp. 54-67

Article Type: Research paper

Publisher: North American Business Press

​Abstract:

This paper investigates the association between business strategy and firms ’ decisions in cost management . Using the strategy topology proposed by Miles and Snow (1978, 2003), I document that firms adopting a prospector -type strategy exhibit a higher level of cost rigidity with higher fixed and lower variable costs than firms employing a defender -type strategy . This is because prospectors are innovation-oriented and tend to make more fixed inputs in research and development activities. My findings add to the implications of business strategy in firms’ resources allocation and cost management.