Cost stickiness: A decade hence

A decade after Anderson, Banker and Janakiraman's (2003) or ABJ study on cost stickiness was published, this study reviews and analyzes the growing body of literature. In their seminal work, ABJ (2003) hypothesized that many costs arise and move as a result of deliberate resource commitment dec...

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Bibliographic Details
Main Author: Uy, Arnel Onesimo
Format: text
Published: Animo Repository 2015
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Online Access:https://animorepository.dlsu.edu.ph/faculty_research/13610
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Institution: De La Salle University
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Summary:A decade after Anderson, Banker and Janakiraman's (2003) or ABJ study on cost stickiness was published, this study reviews and analyzes the growing body of literature. In their seminal work, ABJ (2003) hypothesized that many costs arise and move as a result of deliberate resource commitment decisions by managers considering adjustment costs. This study discusses the theoretical framework of sticky costs phenomenon. It proceeds to presents the criticisms and questions raised on the validity of this cost model and how different studies have addressed them. Next, we take stock on the different articles published on cost stickiness and summarize key issues they addressed, methodology employed, type of analysis made and results thereof. As a conclusion, we present a list of some possible future research directions on cost stickiness.