The Impact of Strategic Choices on Firm Performance: Empirical Evidence from Pakistan

Authors

  • Eman Zainab MS Scholar, Department of Business Administration, University of Sahiwal, Sahiwal, Pakistan
  • Shahjahan Sarfraz Raja CEO, Khushal Dastkaar, Rawalpindi, Pakistan
  • Sania Sarfraz Raja Assistant Professor, Department of Management Sciences, National University of Modern Languages, Islamabad, Pakistan
  • Shahnawaz Sarfraz Raja Project Manager, Khushal Dastkaar, Rawalpindi, Pakistan

Abstract

This study investigates how Porter generic strategies cost leadership and differentiation strategies effect business performance for non financial firms that are listed on the Pakistan Stock Exchange (PSX) between 2017 and 2022. Using data from 87 firms the study aims to determine whether adopting specific business strategies might improve firm performance, as assessed by Return on Assets. The data finds that organizations that use cost leadership strategies have greater ROA, indicating stronger performance, while those that employ differentiation also achieve better performance, emphasizing the importance of efficient operations and unique offerings. The study investigates the relationships using regression analysis, which accounts for possible data variations. The findings suggest that a strategic focus on cost efficiency or product differentiation helps firms succeed in Pakistan's competitive market. This study provides managers and policymakers with actionable insights into how strategic decisions influence organizational growth and performance.

Keywords: Business strategy, firm performance, cost leadership, differentiation, Pakistan Stock Exchange (PSX)

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Published

2023-12-31

Issue

Vol. 2 No. 2 (2023): Journal of Business and Management Research

Section

Articles

How to Cite

The Impact of Strategic Choices on Firm Performance: Empirical Evidence from Pakistan. (2023). Journal of Business and Management Research, 2(2), 1184-1200. http://jbmr.com.pk/index.php/Journal/article/view/301