Antecedents of asymmetric cost behaviour: managerial perceptions across four institutional contexts

Abstract This study examines how managerial perceptions shape asymmetric cost behaviour across distinct institutional environments, focusing on the cognitive processes underlying strategic cost decisions. Based on survey data from 227 C-level executives in the automotive industry in the United States, United Kingdom, Germany, and France, the study validates the structure of cost antecedents through exploratory and confirmatory factor analyses and establishes measurement invariance to enable cross-country comparisons. The findings show that adjustment costs, regulatory constraints, and profit targets are perceived as the most influential antecedents. German and French managers emphasise institutional constraints such as labour protections and compliance obligations, while U.S. and U.K. managers highlight investor pressure and short-term performance expectations. By integrating behavioural decision-making theories with institutional perspectives, this research moves beyond archival proxies and offers a perception-based, cross-national validation of the antecedents of asymmetric cost behaviour. Although focused on the automotive sector, the findings provide a foundation for future research in industries with different levels of institutional rigidity and innovation intensity. Practically, the results underscore the need for managers to align cost strategies with labour market structures and regulatory frameworks, and for policymakers to balance employee protections with adaptive flexibility mechanisms. The study contributes to a deeper, context-sensitive understanding of asymmetric cost behaviour and offers actionable insights for strategic cost management in a complex global environment.