Competitiveness Performance of Selected LGUs in Negros Occidental: An Explanatory Sequential Study

Abstract

Background: Local government competitiveness reflects the capacity of local government units (LGUs) to support economic development, deliver effective public services, and strengthen institutional performance. Although the Cities and Municipalities Competitiveness Index (CMCI) provides a multidimensional assessment of LGU performance, rankings alone offer limited insight into the institutional practices and challenges underlying differences in competitiveness. Examining these factors is therefore important for understanding variations in LGU performance and identifying areas for organisational improvement. Aims: This study examined the competitiveness performance of Local Government Units in Negros Occidental by identifying high-performing and low-performing LGUs based on the CMCI from 2022 to 2024 and determining the factors influencing their competitiveness outcomes. Study Design: The study employed an explanatory sequential mixed-methods design. Place and Duration of the Study: The study was conducted among selected LGUs in Negros Occidental, Philippines, using CMCI data covering the period 2022–2024. Methodology: The quantitative phase analysed secondary data from the Department of Trade and Industry’s CMCI database using descriptive statistics, including frequencies, percentages, and means, to determine rankings and performance trends. This was followed by a qualitative phase involving focus group discussions and key informant interviews with 10 CMCI focal persons to explain the factors affecting LGU competitiveness. Results: The quantitative results revealed substantial disparities in competitiveness performance between cities and municipalities. Cadiz City and Kabankalan City emerged as high-performing LGUs, while the municipalities of Salvador Benedicto and Valladolid were identified as low-performing. The qualitative findings highlighted four key areas associated with differences in LGU performance: leadership and institutional alignment, organisational capacity and coordination, data quality and evidence-based management, and strategic collaboration and innovation. High-performing LGUs demonstrated stronger institutional arrangements, coordinated implementation, and adaptive practices, while challenges in low-performing LGUs included limited manpower, fragmented responsibilities, process inefficiencies, and weaknesses in data management and validation. Conclusion: The integrated findings indicate that LGU competitiveness is shaped not only by performance across the five CMCI pillars, but also by institutional capacity and management practices. Strengthening leadership engagement, institutionalising CMCI responsibilities, improving data quality and inter-office coordination, and promoting collaboration and innovation may help LGUs address performance gaps and sustain competitiveness. The findings provide a basis for practical strategies to enhance LGU competitiveness and support sustainable local development.