Authors: Emilina R. Sarreal, and Joan C. Reyes

Year: 2019, Volume 28 No. 3
Pages: 21–33


From the Global Innovation Index (GII), the Philippines was ranked at 73rd which was far behind the four countries belonging to the Association of Southeast Asian Nations member states where Singapore placed fifth (5th), while Malaysia , Thailand, and Vietnam placed 35th, 44th and 45th, respectively.. The Philippines was ranked higher than Indonesia (85th) and Cambodia (98th). Based on the Survey of Innovation Activities in 2015 where innovative behavior was found to be contingent on the location and firm size, less than half of the micro, small, and medium enterprises (MSMEs) in Luzon (except National Capital Region) are innovation active.

The study analyzed how entrepreneurial orientation (EO) lead to innovative orientation among MSMEs in Region III outside of the variables included in the 2014 GEM database. To supplement the dichotomous nature of the 2014 GEM data where no probing questions were deployed to elaborate on their responses, the sequential explanatory mixed method design was used to validate the quantitative data generated from the 2014 GEM respondents from Region III. The quantitative design used the 170 respondents from Region 3 while the qualitative design collected data via focus group discussion (FGD) from 25 nascent, new and established entrepreneurs from Region III. The quantitative data was analyzed using multinomial logistic regression due to the dichotomous and interval nature of the GEM data. The qualitative data from the FGD was examined using content analysis in establishing general themes generated.

Results of the study yielded competitive aggressiveness as a significant determinant of innovative orientation which the FGD participants validated and deemed to be as relevant as the other EO constructs of innovativeness, autonomy, risk-taking and proactiveness.

Keywords: nascent entrepreneurs; new and established businesses; competitive aggressiveness; innovative and entrepreneurial orientation; product, market and technology innovative orientation; mixed method research
JEL Classifications: L22, L25, L26, O32, O33, Q55