Porter’s Diamond Factor Conditions Determinant: Effect on Automotive Industry of Pakistan

The purpose of the study was to investigate Porter’s diamond attribute factor conditions influence on the performance of firms in the automotive industry of Pakistan. Research methodology used positivism philosophy, data collection instrument used was the structured questionnaire after conducting the pilot study; cross-sectional design was constructed, probability method constituted the data collection approach, parametric and non-parametric statistics used to analyze the data, and hypothesis tested using regression model. The sample size was 194 respondents. The research study found out that there is non-availability of empirical studies on Porter’s diamond in Pakistan. Porter’s diamond factor conditions determinant conceptual and theoretical theme has the potential to provide CA to the industry. Conclusively the study pointed out the underlying force of factor conditions being one of the attributes of Porter’s diamond having significant influence on the performance of the automotive industry of Pakistan. The study examined the automotive industry exclusively from the perspective of private, multinational corporations (MNCs) and joint ventures. There are strategic practical implications of the study findings for academia, practitioners, and government constituencies. The significance of the study lies in the pragmatic perspective provided to the automotives industry players and the government policy makers in realizing the national competitive advantage (NCA) by internalizing the factor conditions as an attribute of Porter’s diamond.