Role of government as moderator: Porter’s diamond firm strategy, structure, and rivalry attribute and industry’s performance
Keywords:Firm’s Performance, Firm Strategy, Structure and Rivalry, Government Policy, Moderator
The prime purpose of the research was to examine, through empirical study, and help determine the government’s role as moderator in the relationship between Porter’s diamond firm strategy, structure, and rivalry construct and the firm’s performance in Pakistan’s automotive sector. In the study, the research philosophy was positivism, and a deductive approach was applied as the main reason to establish generalizations in the results. With a view to determining the magnitude, direction, and significance, researchers emphasized descriptive and inferential statistical techniques. Data was solicited from 166 sample respondents through a structured questionnaire. To establish the reliability perspective and validity context of the questionnaire constructs, a pilot study was part of the research study. Parametric and nonparametric statistical techniques also became an integral part of analysis for drawing objectively based conclusions. For moderation purposes, the tool was macro, Process v3.0 (model 1). The study findings aptly indicate that in a theoretical context, the relationship is not significant, whereas the practical perspective reflects that government policy does influence industry firms’ performance; however, the mediating role of government between Porter’s constructs, viz., firm strategy, structure, and rivalry, and industry firms’ performance documented no impact. In the constituencies of academia, automotive sector players, and policymakers, the moderation results shed light on theoretical and practical contextualization.
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