The Effect of Business Strategy on Company Performance with Emphasis on Management Ability

The present study examines the effect of business strategy on company performance with emphasis on management ability. This research is applied in terms of purpose and in terms of methodology of correlation is causal (post-event).

The statistical population of the study is the companies listed on the Tehran Stock Exchange and using the systematic elimination sampling method, 135 companies were selected as a sample of the research in a 9-year period between 1390 and 1398. The method used to collect information is a library and the relevant data for measuring variables were collected from the Codal site and the companies' financial statements and performed in the initial calculations in Excel, then Stata software was used to test the research hypotheses.

The results of the study show that business strategy has a direct effect on return on assets, company value and operating cash flow. And management ability has a direct effect on the relationship between business strategy and return on assets and company value and has an inverse effect on the relationship between business strategy and operating cash flow.

The results indicate that the choice of business strategy by managers can increase the performance of companies with information content and it can also be said that the ability of managers should be considered by the company's major decision makers.