Firm Size as a Moderator of the Relationship between Business Strategy and Performance in Indian Automotive Industry

Miles and Snow’s strategy typologies have been widely employed to describe various business strategies within a given industry and its relationship with performance as well. Numerous empirical studies have been conducted in abroad on strategy–performance relationship, while little attention has been focused on the moderating effect of size of the firm on the strategy and performance relationship. No research has been carried out on this topic related to Indian automotive industry. This study explicitly investigates the effect of firm size in moderating the relationship between strategy and performance of automotive companies in India. Findings are drawn from the analysis of the primary data collected from CFOs representing 18 automotive companies operating in India and secondary data collected from CMIE, Prowess data bases.