Readiness for Process Innovation of the Manufacturing Enterprises in Misamis Oriental

Junelyn Louvena B Ruiz and Isaias S Sealza
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Junelyn Louvena B Ruiz: Xavier University, Ateneo de Cagayan, Corrales Avenue, Cagayan de Oro City, 9000, Philippines.
Isaias S Sealza: Xavier University, Ateneo de Cagayan, Corrales Avenue, Cagayan de Oro City, 9000, Philippines.

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Abstract: Aims: This study examined the readiness for process innovation among manufacturing enterprises in eight lower-income municipalities of Misamis Oriental, Philippines, in relation to municipal income classification, entrepreneurs' educational attainment, and compliance with regulatory requirements. Study Design: A quantitative correlational research design was used. Place and Duration of Study: The study was conducted in eight (8) municipalities of Misamis Oriental, Philippines, between January 2025 and June 2026. Methodology: Forty-six micro-manufacturing entrepreneurs were interviewed: 65% were female and 35% were male entrepreneurs from the lower-class municipalities in Misamis Oriental. Using the quantitative research design, the collected data were coded and analysed using the Kruskal-Wallis Test, Chi-Square Test, and Spearman Correlation Analysis. Results: A Kruskal-Wallis Test showed that the mean readiness for process innovation differed significantly by municipality classification, with P=.02 at the .05 level of significance. Another finding showed a significant difference among the categories of educational attainment with respect to readiness for innovation, P=.04, at the .05 level of significance. However, a Kruskal-Wallis test showed no significant difference among municipality classifications with respect to compliance with regulatory requirements, P=.33. Further, there was no statistically significant relationship between municipality classification and educational attainment, with χ²(4) = 3.76, P=.44, Cramér's V = 0.2, at the .05 level of significance. Finally, a Spearman correlation showed a low positive correlation between readiness for process innovation and compliance with business regulatory requirements; however, it was not statistically significant, with r(44)=0.23, and P=.12. Conclusion: Higher municipal income classification and higher educational attainment among entrepreneurs may positively influence the readiness of manufacturing enterprises for process innovation. However, municipality classification may not influence entrepreneurs' educational attainment or their compliance with business regulatory requirements. Further work may be undertaken to assess the reliability of these findings.

Date: 2026-08-22
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Published in Journal of Economics, Management and Trade, 2026, 32 (9), pp.20-28

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