A Model of Business Innovation in the Context of Micro, Small and Medium Enterprises in Davao Del Sur

Eva Marie Castillo-Sam, Jeaneth Tormis and John Vianne Murcia

MPRA Paper from University Library of Munich, Germany

Abstract: This study determined the factors that affect business innovation of micro, small and medium enterprises (MSMEs) in Davao del Sur. Data were gathered from owners and proprietors of 88 microenterprises, 61 small enterprises and 52 medium enterprises registered and are operational within the municipalities and component city of the Province of Davao del Sur. Results revealed that the respective mean scores of the management factors have the interpretations: articulation of vision, mission and goals was found to be good, organizational structure was found to be good, while human resource management was found to be very good. In addition, the mean scores for marketing mix have the following interpretations: Product was found to be very good, while price, place and promotion were found to be good. MSMEs were found to be financially-capable. More so, politico-legal, economic, socio-cultural and technological factors were found to be influential in the activities and decision-making of the owners and proprietors. They also posed high regard in adopting business innovation. Stepwise regression analysis was used to derive a model for business innovation of micro, small and medium enterprises in Davao del Sur. The final model revealed that a combination of organizational structure, human resource management, politico-legal forces and socio-cultural forces significantly determine the business innovation of micro, small and medium enterprises, holding other variables constant.

Keywords: business innovation; MSMEs; management factor; marketing mix; financial capability; best-fit model (search for similar items in EconPapers)
JEL-codes: M00 M1 M3 (search for similar items in EconPapers)
Date: 2016-01, Revised 2016-06
New Economics Papers: this item is included in nep-cse and nep-ino
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