The extent of technological innovation adoption among micro, small and medium food processing enterprises and its effects on poverty reduction

Kenneth D. Barroga, Agnes C. Rola, Dinah Pura T. Depositario and Larry N. Digal

International Journal of Entrepreneurship and Small Business, 2023, vol. 50, issue 1, 35-65

Abstract: This study's main research question as contextualised for Davao region, Philippines, is what are the effects of the extent of technological innovation adoption (TIA) among micro, small, and medium food processing enterprises (MSMFEs) on the persistent developmental issue of poverty? This study involved DOST's Small Enterprises Technology Upgrading Program (SETUP) under which financial assistance for MSMFEs is provided to enable them to adopt technological innovations to boost productivity. Primary data were obtained through a census of 52 MSMFEs and key informant interviews. The analytical tools used were a composite index construction, an ordered logistic regression analysis, and a before-and-after approach to impact evaluation. The adoption indices ascertained which MSMFEs did not adopt the technological innovations of SETUP and which ones adopted less, moderately, and highly or fully. There was a positive and significant impact of TIA on MSMFEs' annual gross sales, employment, and daily wage rates of direct workers; thus, contributing to poverty alleviation. Given these promising findings, this study suggests that, among the menu of available poverty reduction strategies, one with far reaching potential is that of strengthening the MSMFEs through TIA.

Keywords: impact assessment; ordered logistic regression; poverty; SETUP; SME; technological innovation adoption; TIA. (search for similar items in EconPapers)
Date: 2023
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