Determinants of the Extent of Technological Innovation Adoption Among Micro, Small, and Medium Food Processing Enterprises in Davao Region, Philippines
Kenneth D. Barroga1*, Agnes C. Rola2, Dinah Pura T. Depositario3,
Larry N. Digal4, and Isabelita M. Pabuayon3
1Technical Services Division, Department of Science and Technology (DOST) XI
Davao City 8000 Philippines
2College of Public Affairs and Development, University of the Philippines Los Baños
Laguna 4030 Philippines
3College of Economics and Management, University of the Philippines Los Baños
Laguna 4030 Philippines
4School of Management, University of the Philippines Mindanao
Davao City 8000 Philippines
*Corresponding Author: This email address is being protected from spambots. You need JavaScript enabled to view it.
ABSTRACT
Micro, small, and medium food processing enterprises (MSMFEs) need to modernize and adopt technological innovations to stay competitive. Various factors influence MSMFEs’ ability to adopt innovations. This study aimed to identify the determinants of the extent of adoption among MSMFEs in Davao Region, Philippines. Data were obtained through a census of MSMFEs in the region assisted by DOST’s Small Enterprises Technology Upgrading Program (SETUP), a government program that enables MSMFEs to adopt technological innovations to boost productivity. The analytical tools used were index construction and ordered logistic regression (LR) for quantitative analysis and case studies for qualitative analysis. The statistical or econometric packages available in R software were used in the estimation process and results generation. The adoption indices ascertained which MSMFEs did not adopt technological innovations and which ones adopted less, moderately, and highly or fully. Results showed that 4% of the MSMFEs did not or failed to adopt technological innovations. On the other hand, 21% of the MSMFEs fully adopted the innovations. The majority of them were in the highly adoptive level. Additionally, the extent of technological innovation adoption (TIA) among MSMFEs was mainly influenced by the sex of the owner, educational attainment, business scale, and type of market. Thus, male owners, those with higher educational attainment, and those who own micro-scale businesses catering to both domestic and export markets are likely to adopt more technological innovations. These findings can contribute to a policy establishing an efficient SETUP implementation strategy at the regional and national levels or developing a new program for MSMFEs.
INTRODUCTION
Micro, small, and medium food processing enterprises (MSMFEs) depend on the adoption of technological innovation by acquisition of upgraded equipment and diffusion of new technologies to increase their productivity, competitiveness, and efficiency. The benefits derived from TIA are well-documented in the literature (Radu 2015, Yu and Tao 2009). The issue that still needs to be addressed is the extent to which technological innovations are adopted by MSMFEs. Some MSMFEs may respond and adopt technological innovation while others may not. A common finding from MSMFE studies is that while some of them have responded by introducing technological innovation such as equipment upgrading or modernizing production, many others continue to produce without using science and technology in their operations to meet statutory and regulatory requirements and international standards (Yapp and Fairman 2005, Parrilli and Elola 2012). . . . . read more
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