Consequences of Kaizen Practices in MSMEs in the Philippines: The Case of the Manufacturing Productivity Extension Program (MPEX)

• Main Authors: Raneses, Nestor O, Cainghog, Nelson G, Tamayao, Mili-Ann M, Gotera, Kristine Mae C
• Format: text
• Published: Archīum Ateneo 2020
• Subjects: Business; Economics; Entrepreneurial and Small Business Operations
• Online Access: https://archium.ateneo.edu/decent-work-econ-growth/1; https://archium.ateneo.edu/cgi/viewcontent.cgi?article=1001&context=decent-work-econ-growth
• Institution: Ateneo De Manila University

The Manufacturing Productivity Extension Program (MPEX) is a fully subsidized public-instigated productivity improvement program directed toward the micro, small, and medium enterprise (MSME) sector. While not advertised and packaged as a Kaizen initiative, it has all the elements of the Kaizen philosophy. Based on survey responses from 64 MPEX beneficiaries and 47 non-MPEX beneficiaries, the study showed that MPEX increased the number of product lines implying that Kaizen practice leads to product innovation among firms. Due to data and confounding issues, significant difference in productivity in terms of number of workers and sales per worker was not established. Firm asset size was implied to influence the capability to implement Kaizen. Regulatory compliance and customer demand requirements and entrepreneurial capacity are catalysts for enabling, adopting, and sustaining Kaizen implementation.