PPIA FEB UI Doctoral Promotion Exposes Cost Stickiness Behavior and Environmental Uncertainty in Different Strategies and Managerial Capabilities
Nino Eka Putra ~ Public Relations FEB UI
DEPOK – (28/7/2022) The Postgraduate Program in Accounting (PPIA), Faculty of Economics and Business, University of Indonesia, held an open session for the Doctoral Promotion of Maria Immaculatta Mitha Dwi Restuti online, Thursday (28/7).
The Doctoral Promotion Session was chaired by Prof. Dr. Irwan Adi Ekaputra, with supervisors Prof. Dr. Lindawati Gani (Promoter), Elvia Rosantina Ph.D. (Co-Promoter 1), Dr. Lianny Leo (Co-Promoter 2). The examiners were Hilda Rossieta, Ph.D. (Chief Examiner), Desi Adhariani, Ph.D., Dr. Telisa Aulia Falianty, Sabam Hutajulu, Ph.D., and Dr. Irwan Djaja.
In this open session, Dr. Maria Immaculatta Mitha Dwi Restuti raised a dissertation entitled “Cost Stickiness Behavior and Environmental Uncertainty in Different Strategies and Managerial Capabilities (Study on Southeast Asian Countries).” Promovenda Maria Immaculatta Mitha Dwi Restuti researched that understanding cost behavior is essential for management, especially in decision-making. Managers consider environmental uncertainty when making decisions about resources that affect cost behavior. This study aims to examine the behavior of cost stickiness in the presence of high environmental uncertainty.
This study also aims to examine the impact of environmental uncertainty on cost stickiness in prospector and defender strategies. This study uses the dimensions of munificence, dynamism, and complexity to measure environmental uncertainty. This study also examines environmental uncertainty’s effect on strategy and cost stickiness behavior in prospector and defender strategies. Furthermore, this study aims to examine the impact of environmental uncertainty on cost stickiness in different managerial capabilities, and the test is carried out on prospector and defender strategies.
Meanwhile, this study uses data on non-financial companies listed on stock exchanges in the Southeast Asian region in the 2013-2019 period. The final sample obtained as many as 23,298 observations, and testing was carried out using panel regression with subsamples. The test results in this study show that cost stickiness increases with high environmental uncertainty.
In the face of environmental uncertainty, companies tend to hold back their resources to keep running the company operations. Cost stickiness increases when the company withholds its resources. Cost stickiness behavior that increases due to environmental uncertainty occurs in prospector and defender strategies. The results also show that with high environmental uncertainty, companies in Southeast Asia tend to choose a defender strategy.
The results show that cost stickiness occurs in the defender strategy, but it cannot be said that cost stickiness occurs in the prospector strategy. That could be because most companies in Southeast Asia are engaged in the service sector, agriculture and mineral resources, and trade in unprocessed products and raw materials, which causes prospector companies not to innovate much in high technology or sophisticated innovation.
Furthermore, the results show that the impact of environmental uncertainty on cost stickiness is more robust in firms with low managerial skills than high, both in prospector and defender strategies. That suggests that managers with low managerial skills in the face of uncertainty tend to hold back resources to continue to meet resource demand and anticipate future sales increases.
The Leadership Council of the open doctoral promotion session decided, Maria Immaculatta Mitha Dwi Restuti graduated with a Very Satisfactory predicate and won the 88th Doctoral Degree in Accounting Science. Congratulations to Dr. Maria Immaculatta Mitha Dwi Restuti!