The Impact of Contingency Factors on the Relationship between Value Chain Efficiency and Systematic Risk

Articles in Press

Document Type : Research Paper

Authors

1 Department of Accounting, Faculty of Humanities, Ilam University, Ilam, Iran.

2 Department of Accounting, Payame Noor University, Tehran, Iran.

10.22103/jak.2026.26083.4235

Abstract

Objective: Value chain efficiency is a company’s capability to effectively utilize tangible and intangible resources to create competitive advantage, maximize firm value, and create customer value. This capability is consistent with Resource-Based Theory (RBT) and Dynamic Capability Theory (DCT) and can reduce firm risk. However, firm characteristics may affect this relationship. Accordingly, the present study identifies and examines intra-organizational contingency factors that may moderate the relationship between value chain efficiency and systematic risk.
 
Method: The statistical population of the study includes all companies listed on the Tehran Stock Exchange. However, data from 108 companies covering the period from 2018 to 2023 were screened to test the research hypotheses. Value chain efficiency was measured based on accounting data using the stochastic frontier function in Stata software, and multivariate regression analysis was employed to test the hypotheses.
 
Results: The results showed that the efficiency of the company’s value chain has a significant negative effect on systematic risk. In addition, firm size, financial leverage, profitability, and board independence weaken the relationship between value chain efficiency and systematic risk, while board size strengthens this relationship.
 
Conclusion: The average value chain efficiency of the sampled listed companies was less than 50%, which is undesirable and considered a serious weakness. However, company executives can improve it by innovating, investing in research and development (R&D) activities, improving production operations, and adopting new technologies. In larger firms and firms with higher debt ratios, the negative impact of value chain efficiency on systematic risk is smaller. In addition, in firms with a larger number of board members, the negative impact of value chain efficiency on systematic risk is greater. Larger boards often possess a wider range of skills, expertise, effective monitoring capacity, and efficient decision-making mechanisms, thereby enhancing their ability to reduce overall corporate risk.

Keywords

Main Subjects

References

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Available Online from 23 May 2026

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  • Receive Date: 11 October 2025
  • Revise Date: 05 December 2025
  • Accept Date: 15 February 2026

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