| dc.description.abstract | Building on resource-based view (RBV) as a theoretical foundation, the purpose of this thesis
is to identify and investigate firm specific factors influencing the profitability of management
consulting firms operating in Norway. The investigated variables are firm size, firm age,
growth rate, productivity, location and lagged profitability. Consequently, the dependent
variable is profitability, measured by ROA. The source of data used in this study is secondary
data from the database Proff Forvalt in the period 2014-2021. The regression analysis shows
that there is a significant relationship for the variable growth rate, productivity, and lagged
profitability on profitability. The results of the regression coefficient indicates that growth
rate, productivity and lagged profitability have a positive influence on profitability. The
empirical results suggest that productivity is the most significant determinant of profitability.
No statistically significant relationship was found for the variable firm size, firm age and
location on profitability. The lack of significance can be due to several factors that characterize
the management consulting industry. Such as, high employee turnover, high flow of
experience and digitalization. The nature of the industry counteracts the potential positive
relationship of firm size, firm age and location on profitability. This study provides further
empirical evidence in a research area where previous studies have conflicting findings, by
investigating an unexplored context. Our study uses theories from the RBV in order to better
understand the conflicting findings in this research area. | en_US |
