Cost stickiness behavior and environmental uncertainty in different strategies: Evidence from Southeast Asia

Abstract Managers consider environmental uncertainty in making decisions. Accordingly, this study aims to test the positive effect of on cost stickiness. This also investigates effects stickiness under different strategies. Further, firms need more able managers deal with uncertain environments. observes when have varying levels managerial ability. We run panel regression analysis 23,298 firm‐year observations Southeast Asian countries 2013–2019. documents that increases stickiness, and are qualitatively similar for prospector defender is stronger low ability both Greater (ratio SG&A sales). increase can be interpreted as a negative signal future profits retain resources meet sales expectations. Managerial affects Hence, less strengthens relationship between operationalizes using three dimensions: munificence, dynamism, complexity, which arguably comprehensive than prior studies only use single dimension. adds strategy behavior. It demonstrates based their competitive advantage capabilities. behavior Asian.