Cost-Structure and the Volatility of Capitalism
DOI:
https://doi.org/10.48132/hdbr.340Keywords:
Cost-structure, volatility, riskAbstract
This conceptual paper explores the phenomena of changing cost-structures and the implications for the volatility of capitalism and the possibility to manage firms in such a hostile environment and proposes future research. It also provides an explanation of why the relevance of accounting is lost, the so-called “relevance lost” debate (see among others Francis & Schipper, 1999).
The changing cost-structures raises fundamental questions concerning the resulting volatility of capitalism and the management of firms in such an increasingly more volatile environment. In Philipson, Johansson & Scheley (2016), we raised the question if it was possible to “...to ride the dragon.” Considering the importance of these phenomena, it is astonishing that we have not found any empirical research concerning them. They rest research questions, based on the author’s almost 25 years of experience as a senior executive in Scandinavian industry.
Downloads
References
Chesbrough, H. W. (2007). Why companies should have open business models. MIT Sloan Management Review, 48(2), 22-28.
De Figueiredo, J. M., & Kyle, M. K. (2006). Surviving the Gales of Creative Destruction: The Determinants of Product Turnover. Strategic Management Journal, 27(3), 241-264. DOI: https://doi.org/10.1002/smj.512
Evanschinsky, H., Eisend, M., Calantone, R. J., & Jiang Y. (2012). Success factors of product innovation: An updated meta-analysis. Journal of Product Innovation Management, 29(S1), 21-37. DOI: https://doi.org/10.1111/j.1540-5885.2012.00964.x
Francis, J., & Schipper, K. (1999). Have financial statements lost their relevance? Journal of Accounting Research, 37(2), 319-352. DOI: https://doi.org/10.2307/2491412
Johnson, H. T., & Loewe, D. A. (1987). How Weyerhaeuser Manages Corporate Overhead Costs. Strategic Finance, 69(2), 20-27.
Magnier, A., Kalaitzandonakes, N., & Miller, D. (2010). Product Life Cycles and Innovation in the US Seed Corn Industry. International Food and Agribusiness Management Review, 13(3), 17-36.
Mintzberg, H. (1979). The Structuring of Organizations. Englewood Cliffs: Prentice Hall.
Olshavsky, R. W. (1980). Time and the Rate of Adoption of Innovations. Journal of Consumer Research, 6(4), 425- 428. DOI: https://doi.org/10.1086/208786
Philipson, S., Johansson, J., & Schley, D. (2016). Global Corporate Governance: The Maelstrom of Increased Complexity – Is It Possible to Learn to Ride the Dragon? Journal of Business and Economics, 7(3), 425-437. http://doi.org/10.15341/jbe(2155-7950)/03.07.2016/007
Porter, M. E. (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors, New York: The Free Press.
Porter, M. E. (1996). What is Strategy? Harvard Business Review, 74(6), 61-78.
Qualls, W., Olshavsky, R. W., & Michaels, R.E. (1981). Shortening of the PLC: An Empirical Test. Journal of Marketing, 45(4), 76-80. DOI: https://doi.org/10.1177/002224298104500410
Rink, D. R., & Swan, J. E. (1979). Product Life Cycle Research: A Literature Review. Journal of Business Research, 7(3), 219-242. DOI: https://doi.org/10.1016/0148-2963(79)90030-4
Sayer, A. (1986). New developments in manufacturing: the just-in-time system. Capital & Class, 10(3), 43-72. DOI: https://doi.org/10.1177/030981688603000105
Taylor, F. W. (1911/2001). The Principles of Scientific Management, Mineola: Dover Publications Inc.
Van der Panne, G., Van Beers, C., & Kleinknecht, A. (2003) Success and Failure of Innovation: A Literature Review. International Journal of Innovation Management, 7(3), 309-338. DOI: https://doi.org/10.1142/S1363919603000830
Von Hippel, E. (1988). The Sources of Innovation. New York: Oxford University Press.
Wagner, S. M., & Busse, C. (2008). Managing Innovation: The New Competitive Edge for Logistics Service Providers. Bern: Haupt Verlag.
Wikipedia (2020). Coca-Cola. 12 December. Retriewed from: https://en.wikipedia.org/wiki/Coca-Cola?wprov=sfti1
Downloads
Published
How to Cite
Issue
Section
License
The authors must be able to transfer to UNIE Busines Research the rights to publish the articles. It is the responsibility of the authors to obtain the necessary permissions for the images that are covered by copyright.
Authors conserve the copyright to their own works. Contributions to Publicaciones UNIE Busines Research are covered by a CC-BY (Creative Commons Attribution 4.0 International Public License) license, which grants open access rights to society. Specifically, the CC-BY license permits any type of use, distribution and changes based on the article, as long as the author and original source are properly acknowledged.
