Competitive Strategies on Performance of Petroleum Companies Moderated by Tax Policy in Kampala, Uganda

Abstract

The main purpose of this study was to assess competitive strategies and performance of petroleum companies in Kampala, Uganda. Specifically, the objective was to assess how cost leadership strategy influences the performance of petroleum companies in Kampala. The research adopted a cross sectional research design and applied both qualitative and quantitative research approaches. A sample size of 73 respondents comprising of heads of different departments and petrol station employees in selected fuel companies was chosen to take part in the study. The study applied questionnaire and interview guide research instruments to collect the data and information needed. The data was analysed using SPSS version 20 to determine the multiple regression model and Pearson Correlation coefficient analysis was used in the data analysis. The results showed that there is a significant and positive relationship between cost leadership strategy and performance of petroleum companies (r = 0.763, p˂0.05) and the regression coefficient estimate of the interaction term is 0.767 with t = 8.642, p <.001. Therefore, tax policy is a significant moderator for the relationship between competitive strategies and performance of petroleum companies in Kampala.

Keywords: Crude oil, petrol, competitive strategies

DOI: 10.7176/EJBM/14-12-06

Publication date:June 30^th 2022