The influence of business strategies on the growth of small and medium auditing firms in Tanzania
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Mzumbe University
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A Dissertation Submitted in Partial Fulfillment of the Requirements for Award
of the Degree of Master of Business Administration in Corporate Management
of Mzumbe University
The business world in recent times has been subjected to the uncertainty resulting to increasing demand for improvement in business strategies. Being the case, this study assesses the influence of business strategies on the growth of small and medium audit firms in Tanzania. Specifically, it focuses on the influence of cost leadership strategy, differentiation strategy, focus strategies, and referred former employees on firms’ growth. To address the identified objectives, a descriptive survey research design was employed to explore both primary and secondary data collected from 125 staffs from 25 Small and Medium audit firms using a survey questionnaire. The data was quantitatively analyzed, and Probit regression model was used to obtain the econometric results prior to presentation and discussion of findings. Therefore, the descriptive results of the current study reveal that, cost leadership strategy, differentiation strategy, focus strategy, and referred former employees influence the financial growth of small and medium auditing firms to a greater extent. Also, the marginal analysis results reveal that, unlike focus strategy, cost leadership strategy and referred former employees significantly influences financial growth in a positive manner; while differentiation strategy statistically influence financial growth negatively. The results of the current study implies that, for a firm to make a rational decision that boost up its financial growth, a business strategy associated to cost leadership, differentiation, and referral from former employees are widely crucial.
The business world in recent times has been subjected to the uncertainty resulting to increasing demand for improvement in business strategies. Being the case, this study assesses the influence of business strategies on the growth of small and medium audit firms in Tanzania. Specifically, it focuses on the influence of cost leadership strategy, differentiation strategy, focus strategies, and referred former employees on firms’ growth. To address the identified objectives, a descriptive survey research design was employed to explore both primary and secondary data collected from 125 staffs from 25 Small and Medium audit firms using a survey questionnaire. The data was quantitatively analyzed, and Probit regression model was used to obtain the econometric results prior to presentation and discussion of findings. Therefore, the descriptive results of the current study reveal that, cost leadership strategy, differentiation strategy, focus strategy, and referred former employees influence the financial growth of small and medium auditing firms to a greater extent. Also, the marginal analysis results reveal that, unlike focus strategy, cost leadership strategy and referred former employees significantly influences financial growth in a positive manner; while differentiation strategy statistically influence financial growth negatively. The results of the current study implies that, for a firm to make a rational decision that boost up its financial growth, a business strategy associated to cost leadership, differentiation, and referral from former employees are widely crucial.
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Business world