The Mediation Effect of Strategic Orientation on the Relation between Inflation, Tax and Business Growth
Abstract
Businesses, particularly distributors bringing in merchandise from overseas into Timor-Leste, are greatly impacted by the high rate of import taxes and inflation as external factors. In order to help distributors grow their businesses significantly, this study aims to analyze how this tax rate and inflation effect distributor growth, as well as to identify obstacles and possibilities that distributors pursue. This research was carried out in 100 Distributors in Dili and questionnaires were used to collect data. To measure the associations between numerous variables, the methodology used in this study makes use of both descriptive and inferential statistics. The findings show that while the tax rate has a marginally meaningful link with growth, inflation has a significantly negative relationship with business growth. However, strategies with a mediation role do not show any significant relationship. In the future, it is recommended to conduct thorough interviews and implement appropriate strategies to enhance business growth
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