Research On The Effect Of Cost Stickness On The Performance Of Multinational Corporation

In recent years,with the increasing intensity of international competition and the increasing uncertainty of the global economic environment,enterprises urgently need to improve their core competitiveness and seek development.Strengthening cost management has become an important way for enterprises to improve their competitiveness and an effective way to obtain greater benefits.Due to the widespread phenomenon of cost stickiness in enterprises,cost stickiness can reflect the level of enterprise cost management to a certain extent.Therefore,it is a meaningful problem to study how cost stickiness affects the performance of multinational corporations.Multinational companies have a wide range of business,and in a global supply chain network.Therefore,from the perspective of supply chain concentration,it is of great theoretical and practical significance to study its role in the relationship between cost stickiness and multinational company performance.This article takes Chinese multinational corporations from 2006 to 2021 as a sample,calculates cost stickiness based on the Weiss model,and obtains a total of 8768 observation data from 1641 multinational corporations.Firstly,descriptive statistics,correlation testing,and multiple regression analysis are used to analyze the impact of cost stickiness on company performance;Secondly,the supply chain concentration ratio is divided into two parts: customer concentration ratio and supplier concentration ratio,and their moderating effects on the relationship between cost stickiness and MNC performance are studied respectively;Finally,use different explained variables,change the regression method,and adjust the sample range to further test the robustness of the results in this paper.Through empirical test,this paper draws the following conclusions :(1)The cost stickiness of enterprises is significantly negatively correlated with the performance of multinational corporations.The greater the cost stickiness,the lower the corporate performance.Multinational companies should improve cost adjustment efficiency,reduce cost stickiness,and reduce waste of resources,thereby promoting the company ’s performance.(2)Customer concentration positively moderates the negative effect of cost stickiness on the performance of multinational companies.The higher the customer concentration is,the more obvious the negative effect is.(3)Supplier concentration positively moderates the negative impact of cost stickiness on the performance of multinational corporations.The higher the supplier concentration,the greater the negative impact between the two.(4)Supply chain concentration plays a positive moderating role in the relationship between cost stickiness and multinational company performance.Too concentrated supply chain will aggravate the negative impact of cost stickiness on the performance of multinational corporations.Multinational companies should appropriately reduce supply chain concentration,avoid excessive dependence on a few customers and suppliers,enhance competitiveness,and maximize their own interests.