The dynamics of firm competitiveness: Evidence from cost behavior of Filipino firms

• Main Author: Uy, Arnel Onesimo O.
• Format: text
• Published: Animo Repository 2014
• Subjects: Competition; Business enterprises—Cost of operation; Accounting; Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/faculty_research/2859
• Institution: De La Salle University

The challenges of our modern times require firms to be competitive for long-term survival. Competitive advantage is not only measured by the revenues (top-line) and profits (bottom-line) but also by how firms operate efficiently (costs). Recent studies show another dimension to cost behavior pattern, called "sticky cost", which explain how firms are able to adjust their resources with changes in activity-levels due to either temporary market fluctuations or a more permanent demand shift. Using panel data analysis, this study analyzed and confirmed asymmetrical cost behavior of Philippine firms. When compared with other countries, the results provide an indication why they are less competitive.