The role and significance of small and medium enterprises in meeting the factor determinants of economic sustainability: A multi-case study on particular members of the Cebu Furniture Industries Foundation CFIF

• Main Authors: Alvarez, Ana Emelita, De Guzman, Kamille, Licup, Charmaine, Lo, Karen
• Format: text
• Language: English
• Published: Animo Repository 2013
• Subjects: Small business > Management; Cebu Furniture Industries Foundation; Furniture industry and trade; Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/10655
• Institution: De La Salle University

This multi-case study on the sample firms of the Cebu Furniture Industries Foundation (CFIF) provides an intensive analysis and valuation of the role and significance of small and medium enterprises (SMEs) in meeting the factor determinants of economic sustainability. Convenience sampling was utilized in the selection of the three sample firms. Collection of data was done through a series of (1) interviews and surveys of prominent individuals from each company to obtain first hand information regarding the firms relationship with SMEs, (2) interviews with officials from CFIF, to gather more comprehensive and credible data and arguments concerning the Philippine furniture industry specifically the SMEs, and lastly, by (3) acquiring financial statements for the sole purpose of providing a monetary perspective on their economic sustainability. The study made use of both qualitative and quantitative data analysis throughout the paper notwithstanding its predominantly quantitative nature. A multi-case analysis, cross synthesis summary and pattern-matching table were utilized to further assess the validity of the four propositions made by the researchers. Results from data analysis uncovered the exceptional contribution (role) and significance of SMEs leading to the growth, development and sustainability of the Philippine furniture industry. The SMEs were deemed to have a crucial role in supplying three out of the four factor determinants leading to economic sustainability. These are raw materials, skilled manpower and technology. It was found that SMEs have a minor role and significance as suppliers of the fourth factor, design. Reasons behind such findings were explained thoroughly throughout this paper. This study is a product of careful research that supplements information and recommendations, which could help companies and the industry itself, achieve growth, development and sustainability. Through boundless support and proper management operations, the furniture industry can and will become one of the highest income streams of the Philippine government. Based on the findings of the study, the researchers would like to make the following recommendations: For the companies- (1) Strengthen their competitive advantages and work towards the expansion of their business domestically and internationally, (2) that management strengthen their ties with their suppliers, particularly SMEs, (3) to take good care of SMEs by providing them with business opportunities and implement proactive steps to empower them, (4) create policies for the protection of SMEs and to (5) tap the domestic market as it was envisioned to be very promising alongside export and international market. For the Philippine Furniture Industry- (1) support MSMEs and large enterprises equally in all areas such as operations, production, imports and exports, (2) have a close coordination with the policy makers, (3) create more projects and programs that would focus on uplifting, developing and enriching the capabilities of SMEs, (4) come up with a particular framework or standard to assess the cruciality and significance of the SMEs. For the government- (1) create more training programs to develop factors such as raw materials, skilled manpower, technology and design, (2) extend support both physically and financially, (3) acknowledge and actually use the roadmap designed for the furniture sector and to (4) include particular guidelines for SMEs in the industry roadmap. For the SMEs- (1) participate in all available training programs, (2) develop themselves as main suppliers of raw materials, skilled manpower, technology and design, (3) focus on innovation and to (4) take extensive measures to maintain and improve management and operations. For future researchers- (1) find, if not, develop a tool that is custom-fit to measure industry economic sustainability, (2) tackle and confirm if these findings are indeed true not only for these sample firms but also other firms and the furniture industry as a whole, (3) consider intervening variables or external factors, and to (4) conduct a causality study of SMEs against sustainability.