{"title":"Increase or decrease: Customer digital transformation and supplier cost stickiness","authors":"Mengzhe Li , Siyuan Guo , Xizi Wang , Yingqi Liu","doi":"10.1016/j.pacfin.2024.102507","DOIUrl":null,"url":null,"abstract":"<div><p>Customer digital transformation plays a crucial role in shaping supply chain management, particularly affecting the cost stickiness of supplier firms. By analyzing textual data from the top five customers of Chinese listed firms, this study investigates the impact of customer digital transformation on supplier cost stickiness. The findings demonstrate that the spillover effects of customer digital transformation substantially decrease supplier cost stickiness. This decrease is due to decreased adjustment costs, alleviated agency problems, and mitigated management optimism. Additionally, cross-sectional analysis reveals that these effects are more pronounced in suppliers with greater geographic distances from their customers, those within less competitive industries, and those audited by Non-Big Eight accounting firms. This research provides valuable insights for digital initiatives, supply chain management, and cost-related decision-making processes.</p></div>","PeriodicalId":48074,"journal":{"name":"Pacific-Basin Finance Journal","volume":null,"pages":null},"PeriodicalIF":4.8000,"publicationDate":"2024-08-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Pacific-Basin Finance Journal","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0927538X24002592","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0
Abstract
Customer digital transformation plays a crucial role in shaping supply chain management, particularly affecting the cost stickiness of supplier firms. By analyzing textual data from the top five customers of Chinese listed firms, this study investigates the impact of customer digital transformation on supplier cost stickiness. The findings demonstrate that the spillover effects of customer digital transformation substantially decrease supplier cost stickiness. This decrease is due to decreased adjustment costs, alleviated agency problems, and mitigated management optimism. Additionally, cross-sectional analysis reveals that these effects are more pronounced in suppliers with greater geographic distances from their customers, those within less competitive industries, and those audited by Non-Big Eight accounting firms. This research provides valuable insights for digital initiatives, supply chain management, and cost-related decision-making processes.
期刊介绍：
The Pacific-Basin Finance Journal is aimed at providing a specialized forum for the publication of academic research on capital markets of the Asia-Pacific countries. Primary emphasis will be placed on the highest quality empirical and theoretical research in the following areas: • Market Micro-structure; • Investment and Portfolio Management; • Theories of Market Equilibrium; • Valuation of Financial and Real Assets; • Behavior of Asset Prices in Financial Sectors; • Normative Theory of Financial Management; • Capital Markets of Development; • Market Mechanisms.
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