Role of government as moderator: Porter’s diamond firm strategy, structure, and rivalry attribute and industry’s performance


  • Muhammad Ahmed Butt University of Central Punjab
  • Paul Katuse Prof. Paul Katuse PhD. Skyline University College, Sharjah. UAE



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.


Download data is not yet available.


Bagire, V., & Namada, J. (2013). Managerial Skills, Financial Capability and Strategic Planning in Organizations. American Journal of Industrial and Business Management.3 No.5.doi: 10.4236/ajibm.2013.35055 DOI:

Brignall, S., & Ballantine, J. (1996). Performance measurement in service business revisited. International Journal of Service Industry Management, 7(1), pp. 6-31. DOI:

Brown, P., McNaughton, R., & Bell, J. (2010). Marketing externalities in industrial clusters: a literature review and evidence from a Christchurch, New Zealand electronics cluster. Journal of International Entrepreneurship, 8(2), 168-181. DOI:

Deniz, M., Seckin, S.N., & Cureoglu, M. (2013). Micro-economic competitiveness: research on manufacturing firms operating in TRB1 region, Procedia- Social and Behavioral Sciences, 75, pp. 465-472. DOI:

Derfus, P., Maggitti, P., Grimm, C., & Smith, K. (2008). The Red Queen influence: competitive actions and firm performance. Academy of Management Journal, 51(1): 61–80. DOI:

Dögl, C., Holtbrügge, D., & Schuster, T. (2012). Competitive advantage of German renewable energy firms in India and China an empirical study based on Porter's diamond. International Journal of Emerging Markets, 7(2), 191 – 214. DOI:

Edler, J., & Georghiou, L. (2007). Public Procurement and Innovation: Resurrecting the Demand Side. Research Policy, Elsevier, 36. DOI:

Flannery, M. J. (2014). Contingent Capital Instruments for Large Financial Institutions: A Review of the Literature. Annual Review of Financial Economics 6, 225–240. DOI:

George, R., & Reddy, Y. (2015). Corporate tax in emerging countries: some aspects of India. International Journal of Law and Management, 57(5), pp.357-366. DOI:

Hayes, A. F. (2013). Introduction to mediation, moderation, and conditional process analysis: A regression-based approach. New York: The Guilford Press

Hogan, T., Meredith, N., & Pan, X. (2015). Risk-based capital regulation revisited: evidence from the early 2000s. Journal of Financial Regulation and Compliance, 23( 2), pp.115-134. DOI:

Kaplan, R.S., & Norton, D.P. (1992). The balanced scorecard: measures that drive Performance. Harvard Business Review, 69 (1), pp. 71-79.

Loader, K. (2007). The challenge of competitive procurement: value for money versus small business support. Public Money and Management, 27 (5), pp. 307- 314. DOI:

Malyshev, N. (2002). The Evolution of Regulatory Policy in OECD Countries. A series of OECD Regulatory Reform Reviews.

Ming, C.Z. (2017). Inventory and Distribution of Energy Subsidies of China. The Energy Journal, 38, SI1. DOI:

Moeljadi, Sumiati, Anselah, S., &Yuniarsa, S. (2015). The Influence of Government as a Moderating Variable in the Relationship between Orientation Entrepreneurship, Innovation, and Market Orientation on Business Performance (Case Study: Tutul Village, Jember, East Java). International Journal of Business, Economics and Law, 7(2) (Aug.) ISSN 2289- 1552

Mund, K., Pieterse, K., & Cameron, S. (2015). Lean product engineering in the South African automotive industry. Journal of Manufacturing Technology Management, 26(5), pp.703-724. 0062. DOI:

Nnyanzi, J., Peter Babyenda, P., & Bbale, J. (2016). Regional Economic Integration and Tax Revenue: East African Community. Journal of Economic Integration, 31(4), 932-967. DOI:

Oyelakin, O., & Kandi, U. (2017). The Moderating Role of Government Policies on the Relationship between Technology, Innovation and Entrepreneurship Development in Nigeria: A Partial Least Square Approach. Universal Journal of Management 5(10): 477-484, 2017 DOI:

Porter, M. (1990). The Competitive Advantage of Nations (1st ed.). Palgrave, New York Press. DOI:

Porter, M. (1998). Clusters and the new economics of competition. Harvard Business Review, 76(6): 77-90.

Tavakol, M., & Dennick, R. (2011). Making Sense of Cronbach’s Alpha. International Journal of Medical Education, 2, Pp.53-55. DOI:

Wilson, Sonsini, Goodrich, and Rosati. (2016). 2016 Antitrust Year in Review. California: Author. Retrieved from report/2016/ Antitrust.2016.pdf.

Yamane, T. (1967). Statistics: An Introductory Analysis (2nd ed.). New York: Harper and Row.




How to Cite

Butt, M. A., & Katuse, P. (2023). Role of government as moderator: Porter’s diamond firm strategy, structure, and rivalry attribute and industry’s performance. International Journal of Research in Business and Social Science (2147- 4478), 12(7), 85–93.



Strategic Approach to Business Ecosystem and Organizational Development