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

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



Abstract Views
1086

Downloads
727

Citations

Share

##plugins.themes.bootstrap3.article.sidebar##

Table of Contents

##plugins.themes.bootstrap3.article.main##

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.

 
Keywords: Automotive Industry; Competitive Advantage; Factor Conditions; National Competitive Advantage
  1. Porter, M. (1990).The Competitive Advantage of Nations (1st ed.). Palgrave, New York Press.  |   Google Scholar
  2. Rugman, A., & Collinson, S. (2012). International business (6th ed.). Harlow, England; New York: Pearson.  |   Google Scholar
  3. Jin, B., & Moon, H. (2006).The diamond approach to the competitiveness of Korea's apparel industry Michael Porter and beyond. Journal of Fashion Marketing and Management : An International Journal, Vol. 10 Iss 2 pp. 195 – 208.  |   Google Scholar
  4. Grant, R.M. (1991). Porter’s competitive advantage of nations: an assessment. Strategic Management Journal, Vol. 12 No. 7, pp. 535-48.  |   Google Scholar
  5. Institute of Development and Economic Alternatives. (2016). Regional Competitiveness Studies Research Study on Auto Sector. Retrieved from http://www. ideaspak.org/images/sampledata/pdf- files /20160318-Auto-Sector-Report.pdf.  |   Google Scholar
  6. State Bank of Pakistan (2015). Sector wise Studies’ Report (2014-2015). Retrieved from http://www.sbp. org.p/reports/annual/arFY15/Vol1/APRFY15(Complete).pdf  |   Google Scholar
  7. Automotive Development Policy. (2016). Report 2016-2021. Retrieved frohttp://boi.gove.pk userfiles1/file/AutoPolicy/AP.pdf  |   Google Scholar
  8. Imenda, S. (2014). Is there a Conceptual Difference between Theoretical and Conceptual Frameworks? University of Zululand, Faculty of Education, Department of Mathematics, Science and Technology Education, P/Bag x1001, KwaDlangezwa, South Africa.  |   Google Scholar
  9. Karkkainen, R. (2008). Clustering and international competitiveness of information technology industry in the Saint Petersburg Area. ISBN 978-952-214-599- 4.Retrieved from https://www.doria.fi/bitstream/handle/ 10024/38568/Julkaisu _RK_Tuta.pdf?sequence=1.  |   Google Scholar
  10. Macpherson, W., & Lockhart, J. (2017).Understanding the erosion of US competitiveness: Managed education and labor in Japanese “corporate castle towns”. Journal of Management History, Vol. 23 Issue: 3, pp.315-336. doi:org/10.1108/JMH-03-2017-0012  |   Google Scholar
  11. Kharub ,M.,& Sharma, R.(2017).Comparative analyses of competitive advantage using Porter diamond model (the case of MSMEs in Himachal).Competitiveness Review: An International Business Journal, Vol. 27 Issue: 2, pp.132-160.  |   Google Scholar
  12. Kamukama, N. (2013).Intellectual capital: company's invisible source of competitive advantage. Competitiveness Review: An International Business Journal, Vol. 2 Issue: 3, pp.260-283.  |   Google Scholar
  13. Chobanyan, A., & Leigh, L. (2006). The competitive advantages of nations: Applying the “Diamond” model to Armenia. International Journal of Emerging Markets, Vol. 1 Issue: 2, pp.147-164.  |   Google Scholar
  14. Jhamb, P. (2016). An Application of Porter's Diamond Framework: A Case of Sports Goods Cluster at Jalandhar. Pacific Business Review International, Volume 8, Issue 8.  |   Google Scholar
  15. Sunders, M., Lewis, P. & Thornhill, А. (2016). Rеsеаrch Mеthods for Businеss Studеnts,(7th еd.). Pеаrson Еducаtion Limitеd.  |   Google Scholar
  16. Malhotra, N.K. (2004). Marketing Research: An Applied Orientation (4th ed.) Pearson Education, Inc: New Jersey.  |   Google Scholar
  17. Nunnally, J.C., & Bernstein, I.H. (1994). Psychometric Theory (3rd ed.). McGraw-Hill:New York.  |   Google Scholar
  18. Cooper, D. R., & Schindler, P. S. (2014). Business research methods (12th ed). New York: McGraw Hill/Irwin 214.  |   Google Scholar
  19. Sekaran, U., & Bougie, R. (2016). Research Methods for Business (7th ed.). John Wiley& Sons Ltd.  |   Google Scholar
  20. Franke, T. M., Ho, T., & Christie, C. A. (2012). The Chi-square test: Often used and more often misinterpreted. American Journal of Evaluation, 33, 448-458 doi: org/10.117/109821 4011426594.  |   Google Scholar
  21. Kothari, C.R. (2007). Quantitative techniques. New Delhi, UBS Publishers Limited.  |   Google Scholar
  22. Thompson, B. (2006). Foundations of behavioral statistics: An insight-based approach. New York: The Guildford Press.  |   Google Scholar
  23. Greene, H. (2017).Econometric Analysis (8th ed.). Upper Saddle River, N. J: Prentice Hall.  |   Google Scholar
  24. Bagire,V.,& Namada, J.(2013). Managerial Skills, Financial Capability and Strategic Planning in Organizations. American Journal of Industrial and Business Management.Vol.No.5.doi: 10.4236/ajibm. 2013.35055.  |   Google Scholar

Downloads

Download data is not yet available.

How to Cite

Butt, M. A., Katuse, P., & Namada, J. M. (2019). Porter’s Diamond Factor Conditions Determinant: Effect on Automotive Industry of Pakistan. European Journal of Business and Management Research, 4(4). https://doi.org/10.24018/ejbmr.2019.4.4.78

Search Panel

 Muhammad Ahmed Butt
 Google Scholar |   EJBMR Journal
 Paul Katuse
 Google Scholar |   EJBMR Journal
 Juliana M. Namada
 Google Scholar |   EJBMR Journal