Resumen
This study explores the complexities of cost behavior in the textile industry, conducting a comparative analysis between firms in the Nordic countries and Spain. Our main goal is to examine how distinct economic and corporate governance models impact the cost management strategies of textile firms. Utilizing a panel dataset from the Orbis database covering the years 2017 to 2022, we reveal significant differences in cost stickiness between these regions. Notably, Nordic textile firms demonstrate a stronger tendency toward cost stickiness compared to their Spanish counterparts. This difference is largely attributed to the Nordic textile firms? more cautious approach to adjusting costs in response to decreases in revenue, potentially motivated by a commitment to sustainability, eco-friendly technologies, and long-term business success. Our analysis not only highlights the complex interaction between the global challenges confronting the textile sector and the unique economic and governance environments but also maps out how these elements shape cost management strategies. By offering insights to both academics and practitioners, this study advocates for a comprehensive cost management approach, capable of navigating demand volatilities and strategic complexities faced by textile firms.