Government’s role as moderator in relationship of porter’s diamond factor conditions and firm’s performance

Abstract

The study's purpose was to investigate through empirical research the moderating role of government in the relationship of porter diamond factor conditions attribute and firm’s performance in the automotive industry of Pakistan. The research methodology used positivism philosophy, a pilot study carried out to determine the reliability and validity of the instrument. The descriptive and inferential statistics constituted an integral part of statistical analysis. 194 samples selected through random sampling, a self-administered questionnaire was served to them, 166 responses received and studied. For moderation macro, PROCESS v3.0 (model 1) used to test the hypothesis. The findings of the study indicate the absence of such a study in the auto industry of Pakistan. Government policy influenced the firm’s performance in the automotive industry. Government policy did not play a moderating role in the relationship of porter diamond factor conditions determinant and firm’s performance. Theoretical implications reflect that the government's role as a moderator between the relationship of porter diamond factor conditions and the firm’s performance remained not significant. Practical implications indicate that government policy has influence over the firm’s performance, nonetheless, government policy’s mediating role between porter’s diamond factor conditions and firm’s performance have no effect. Moderation results provided a theoretical and practical context for academia, industry players, and policymakers