Effect of Government Policies on Building Competitive Advantage of Local Manufacturing Companies. A Case of Clothing Manufacturers in Gasabo District, Rwanda

Gikundiro Budengeri Eularie, Dushimimana Jean de Dieu
University of Kigali, Rwanda
https://orcid.org/0009-0000-6416-8505
Email: eulariegikundiro@gmail.com

Abstract: The general objective of this study was to assess the effect of government policies on building competitive advantage of local clothing manufacturing companies in Gasabo District, Rwanda. The study population was 223 including 178 clothing manufacturer staff members and 45 local leaders operating in Gasabo District and local leaders. Due to the small population size, the researcher employed a census method rather than a sampling approach. The research relied on documentation, interviews, and questionnaires to compile its findings. In order to find descriptive and inferential statistics, the researcher used SPSS version 25. The findings show an R value of 0.865, indicating a strong positive correlation between predictors (inspection policies, business registration policy, and licensing policy) and competitive advantage among local clothing manufacturers in Gasabo District. The R² value of 0.748 means that approximately 74.8% of the variance in competitive advantage can be explained by these three policy areas. The regression results show that a one-unit increase in business registration policy leads to a 0.396-unit increase in competitive advantage (B = 0.396, t = 6.828, p = 0.000). Similarly, a one-unit increase in licensing policy results in a 0.255-unit rise in competitive advantage (B = 0.255, t = 4.474, p = 0.000). A one-unit increase in inspection policy contributes to a 0.287-unit increase in competitive advantage (B = 0.287, t = 6.674, p = 0.000), confirming their significant positive influence. Clothing manufacturers are encouraged to stay updated on regulatory requirements and engage in proactive licensing and inspection processes.