Total Quality Management and Entrepreneurial Orientation as Predictors of Business Performance among Small-Medium Enterprises (SMEs)

Abstract

The research sought to identify the areas of Total Quality Management and Entrepreneurial Orientation that significantly predict the Business Performance of Small and Medium Enterprises located in the City of Tagum. The respondents of the study were four hundred ninety (490) selected Small and Medium Enterprises in Tagum City, Davao del Norte. The researcher used a quantitative, non-experimental utilizing correlational technique in research and utilized the adapted and modified research questionnaires as instrument. The statistical tools used in the research include Mean, Pearson r, and Multiple Regression Analysis. The sampling techniques employed in this study is random sampling. Results revealed that the level of Total Quality Management of the respondents is very high, the level of Entrepreneurial Orientation is very high, while the level of Business Performance indicates a very high level. In addition, the study found out that there is a significant relationship between total quality management and business performance, and there is a significant relationship between entrepreneurial orientation and business performance. The domains of TQM that significantly predict Business Performance are customer focus, planning, process management, people management, and information analysis. Moreover, the domains of Entrepreneurial Orientation that significantly predict Business Performance are autonomy, proactiveness, and competitive aggressiveness. Lastly, the results of the study support the theories of Resource based View Theory and Dynamic Capabilities Theory.