Comparing the impact of co-determinants on return on assets: focusing on Business Strategies

The present study investigates the impact of asset's age and business strategies on the relationship between the growth of assets and the operational performance of the companies. return on net operational assets is considered to be the representatives of the operational performance of the companies. For this purpose, a sample including 86 companies listed at Tehran's stock exchange during the 2006 and 2010 has been studied. By doing hierarchical cluster analysis, the companies were categorized into two clusters of cost leadership and product differentiation. In order to analyze and examine the relationship between the variables in our study, the approaches of balanced panel data was used. The results show that there's a significant relationship between and the asset's age operational performance of the companies. These findings underline the influence of the variables of the asset's age and business strategies on the relationship between growth of the assets and the performance of the companies. These results indicate that the impact of factors on the growth of assets in the companies with older assets is more intensive. From the other hand, the findings show that the impact of the growth of the assets in the companies following the product differentiation approach is negative. Since the main key to success in investments is to determine each company’s particular competitive advantage and the stability thereof; hence, the empirical results of these strategic concepts could provide a useful mechanism for entrepreneurs in order to gain a better future performance.