| dc.description.abstract | Assessing a country‘s competitiveness and devising policies to enhance competitiveness have become officially institutionalized tasks at both national and regional levels. This study was designed to establish the determinants of Machakos County manufacturing sector competitiveness and to assess whether those determinants can be explained by Porter‘s Diamond model. A descriptive census survey design was used in the study. Data was collected using semi-structured questionnaires which were administered through the drop and pick later method. 47 out of the targeted 65 respondents duly filled and returned the questionnaires for analysis giving a response rate of 72%. The findings from the study indicate that Machakos County manufacturing sector is competitive compared to other counties with the following factors contributing to business success: access to raw materials, proximity to the City of Nairobi, proximity to the airport and low cost of production such as energy, labour, transport among others. The study further found that political stability and conducive county government policies influence business success to a moderate extent that is partly explained by the fact that counties have been in operation in Kenya for less than one year. While Porter (1990) in his well known Diamond identified four determinants of competitive advantage namely; factor conditions, demand conditions, related and supporting industries and firm strategy and rivalry, this study found that only three of those determinants can be used to explain the competitiveness of Machakos County manufacturing sector. The determinants include factor conditions (land, labour and electricity and the county‘s location especially its proximity to the City of Nairobi and airport), related and supporting industries (insurance companies, learning institutions, local suppliers) and firm strategies (marketing innovation, product packaging and advertising). From the study findings, it was recommended that county government policies should be aimed at creating conducive environment for manufacturers willing to invest in Machakos County through tax breaks for business start-ups and demand stimulation. R&D institutions should be set-up within the county and collaboration encouraged with manufacturing firms so as to improve product range though new products hence making the county even more competitive. | en |
