An empirical study of competitiveness measurement methodology: A case study of the automotive manufacturing sector

The automotive industry have experienced remarkable changes in competitiveness level, between the emergence of first generation vehicles and now. The paper seeks to examine the methodology applied, in analyzing firm level competitiveness, as it focuses on tier 2 components manufacturers, which supply components to tier 1 enterprises, within the automotive production value chain. Furthermore, it aims at determining the applicability, effectiveness and relevance of Key Performance Indicators (KPIs) considered in firm performance measurement. This was achieved through review of past competitiveness assessments carried out in the manufacturing sector, which informed the instrument developed for the empirical enterprise assessment. The findings from the research highlights factors, which need to be considered for industries to be competitive locally and internationally. The study considered a wide range of indicators, using a questionnaire with 21 observation themes and approximately 100 observation pointers. However, this paper shall be limited to general background, productivity, performance measurement, product development and labor relations. The methodology examined the relevance of each indicator within the context of the study, by quantifying the feedback received, against questions without responses. The questions without feedbacks which had no link with identified gaps, were tagged as extraneous, hence, inappropriate for future assessment.