Chapter V Data Collection and Utilization

ACC 80 – ACCOUNTING RESEARCH METHODS
Chapter 5
Basic Accountancy Research - Data Collection and Utilization
The importance of good quality data cannot be overemphasized. Data are the most important
ingredients in all scientific researches. They are the bases in understanding and analyzing the research
questions which could subsequently provide solutions to existing problems.
The task of gathering data in the research process is similar to the audit process. Both are
guided by the principle of "due professional care." They are geared towards the accumulation of
evidence to support claims about the subject matter. Data must be analyzed and interpreted so that
their meanings can be drawn.
Specific Outcomes:
After reading this chapter, the students should be able to:
1. Illustrate the different methods of data gathering;
2. Draft data gathering instruments based on the research design and data
requirements;
3. Identify the appropriate types of sampling applicable to the data requirements;
4. Construct data distribution tables and other means of data presentation;
5. Analyze data sets and deduce meanings in them; and
6. Draft conclusions and recommendations based on the results of the study.
Topic Outline
5.1 Data Collection
5.2 Data Processing
5.3 Research
Application
5.1 Data Collection

This process entails field work and use of various methods of data gathering. This is the means
by which evidence is gathered to be able to provide empirical support in answering the research
questions.
Along this, the researcher should 1) have the ability to differentiate the purposes or uses of
the various methods of gathering data and proposing the most appropriate method(s), 2) be able to
construct a research instrument that will enable the gathering of data in the most efficient and
effective manner 3) must be capable of appraising the quality of data that are relevant to the study.
Before going to the field, the researcher should have defined the population on which research is to
be conducted, calculated the sample size that is representative of the population, and constructed a
reliable sampling design.
The data collection process belongs to the fourth chapter in a research report (Figure 5-1). In
the Chapter, the research design is described first; then followed by the data-gathering methods, the
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instruments, and the sampling plan. Data can be gathered from the respondents through a survey, an
interview, observation, focused group discussion, or triangulation. The researcher should discuss how
these were conducted. This part of the report presents data about the population, sample size,
sampling method used, profile of the respondents, and data-gathering instruments. It discusses the
measurement scales and range of meanings for the quantitative measures used. It also shows the
place where the study is conducted. It also describes the groups, organizations, and sectors involved
in the study. The researcher has the option to includes certain socio-economic aspects if he/she deems
them relevant. A map of the location is shown in this part of the report. A sample write-up on Data
Collection is shown in Illustrative Example 1.
Data Collection Chapter 4 – Research Design and Methods
• Data Gathering Methods 1. Description of the Research

• Instruments 2. Data-Gathering Methods
• Sampling Plan 3. Data Gathering Instruments
4. Sampling Plan
Data Processing
Chapter 5 – Results and Discussion
• Presentation
• Analysis Presentation, Analysis, and Interpretation of
• Interpretation Data Gathered Arranged According to the
Research Problems
Research Application
Chapter 6 – Conclusions and Recommendations
Figure 5-1. Data Collection and Utilization Processes
Types of Data
Research in Accountancy can be carried out with two types of data: primary and secondary.
Primary data are the data collected first hand by a researcher through his/her own data-gathering
techniques such as surveys, interviews, and focus groups. These are the facts and figures that are
collected intentionally for the current research. On the other hand, secondary data are the data that
were gathered by someone else or collected for some purposes other than the current study.
Secondary data are available to the public.
Primary data can be supported extensively by secondary data. In like manner, the secondary
data can greatly substantiate the primary data gathered during the current research. If secondary data
are analyzed with care and diligence, they can provide a cost-effective way of gaining a broad
understanding of the research questions. They are also helpful in designing subsequent researches
and can provide a baseline with which to compare the primary data collection results. It should be
noted, however, that each of them alone can provide answers to the research question. The two types
of data are often contrasted in terms of sources, accuracy, methods of gathering, and cost as shown
in Table 5-1.
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The advent of information and communication technologies and the worldwide web have
made secondary data easily available online. To find information on the internet, one can use the
uniform reference locator (URL) or the search engines. URL is a web address that identifies a particular
location on the Web. A search engine is a web site that collects and organizes contents from all over
the internet. To locate something, a person should enter a query about what he/she would like to
find. Subsequently, the engine provides links to contents that match what the person wants. The most
popular search engines are Google, Yahoo, Bing and the like.
Category Primary Data Secondary Data

Sources Researcher’s own study Worldwide web, boos, journals, census
conducted through data, official statistics, technical
experiments, surveys, reports, trade journals, scholarly
questionnaires, focus group, journals, biographies, articles, and
and other techniques databases available to the public.
Accuracy Tends to be more accurate as Less accurate because the data collected
it is customized specifically for were not specifically supplied or
the current study designed for the current study
Data-gathering method Follows a systematic Since data are already available, the
approach designed by the researcher has no means to systematize
researcher, making the data an approach to gather them
scientific
Cost Higher cost due to longer time Typically available for free for a
spent in gathering and in subscription fee to the database,
developing the analysis magazine or journal. Once the
subscription is obtained, the data can be
gathered immediately so it takes much
less time to collect secondary data.
Table 5-1. Comparison of Primary and Secondary Data
Data Gathering Methods and Instruments
The commonly used methods to gather data are: (1) survey, (2) interview, (3) Observation, (4)
focus group discussion, and (5) triangulation.
Survey is a type of research design. It is also a method of data-gathering. As a method, survey

is conducted by means of a questionnaire.
A questionnaire is a means of eliciting the feelings, beliefs, experiences, perceptions, or

attitudes of sample individuals. Largely, it is a very concise, preplanned set of questions designed to
yield specific information about a pertinent topic, to meet a particular need for research information.
As a data-gathering instrument, it is a written or printed form consisting of a list of questions to be
submitted to one or more persons. It could be in closed/restricted form or open/unrestricted form.
A closed or restricted form of questionnaire asks for a "yes" or "no” answer, short response,
or item checking. It is quite easy to tabulate, interpret, and summarize. On the other hand, an open
or unrestricted form calls for free response from the respondent and allows for greater depth of
response. It is relatively difficult to tabulate, interpret, and summarize.
A good questionnaire has the following characteristics:
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1. It deals with a significant topic. Since the questionnaire requires time on the part of the
respondent, the significance of the topic should be clearly stated in the questionnaire or
in an accompanying letter.
2. It seeks information that can only be obtained from the respondent and not from other
sources.
3. Its length should be reasonable, that is, it should contain only essential data needed in the
study.
4. It should have a pleasing appearance-clearly printed and data neatly arranged.
5. It should contain clear and complete directions, completely-defined terms, and properly-
worded questions.
6. Its category of questions should provide an opportunity for easy, accurate, and
unambiguous responses.
7. Questions should be objective, with no leading suggestions to the desired response.
The rate of response in a survey depends on the following factors: (1) length, of the
questionnaire; (2) reputation of the research organization or sponsoring agency; (3) complexity of the
questions asked; (4) relative importance of the study as determined by the respondent; (5) extent to
which the respondent believes that his/ her responses are important; (6) quality and design of the
questionnaire; and (7) time of year the questionnaires are sent out.
Survey questionnaire may be administered through direct administration, online survey, mail
survey, and telephone survey.
Direct administration of a survey can be done among individuals within groups. This is
considered as the most powerful and useful tool of research because it includes factual information,
opinions, attitudes, and reasons for behavior. When administered in a group, the instrument is carried
out to all members of the group at the same time and usually in the same place. However, this
approach requires literate respondents and does not permit follow up questions.
Online survey provides fast results and does not entail travel and mailing costs. However, this
requires computer skills on the part of the respondents.
In a mail survey, the questionnaire is sent to each individual by mail with a request that it
should be completed and returned by a given date. It is inexpensive and can be accomplished by the
respondent alone. It allows access to samples that might be hard to reach in person or by telephone.
It also permits respondent to have sufficient time to answer questions. However, there is less
opportunity to encourage the cooperation of the respondent and provide him/her assistance. There
is also a low response rate since many respondents do not lend themselves well in providing
information.
In a telephone survey, the researcher or assistant asks questions over the telephone. This is
cheaper than personal interviews. It can be conducted fairly quickly and can be blended easily to
standardized questioning procedures. It permits a greater amount of follow-up and provides better
coverage in certain areas where personal interviewers are often reluctant to go. However, this
prevents visual observation of respondents and is less effective in obtaining information about
sensitive issues or personal questions.
Table 5-2 shows a closed (restricted) questionnaire for a study that assessed the performance of an
audit firm. Using the attributes of audit quality, the said study also benchmarked the firm's
performance with its competitors.
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Please rate the quality of our audit services on your dealings with our audit team and using the
attributes listed below by checking the corresponding column of the following scales:
1 – Strongly disagree
2 – Disagree
3 – Agree
4 – Strongly Agree
Audit Quality Attributes 1 2 3 4 Comments

1 Our firm had an appropriate amount of prior experience
in auditing your company.
2 Our firm had the necessary industry expertise to
effectively audit your company
3 Our firm was responsive to your company’s needs.
4 The audit team members as a group were technically
competent in their application of the generally accepted
auditing standards.
5 The individual audit team members were never engaged
in any action that would compromise his independence,
either in fact or in appearance.
6 The audit team members as a group always exercised
due professional care throughout the engagement.
7 The audit team members exhibited a strong
commitment to quality.
8 The executives (partner/director) from the CPA firm
were actively involved in the engagement.
9 The audit team members conducted the audit field work
in an appropriate manner.
10 The audit team members interacted effectively with the
audit committee before, during, and after the audit.
11 The audit team members exhibited high ethical practices
and were very knowledgeable about them.
12 The audit team members were very knowledgeable
about accounting and auditing.
Table 5-2. Closed Survey Questionnaire on Audit Quality
Interview is a face-to-face interpersonal attempt to obtain reliable and valid information in

the form of verbal responses from one or more respondents. It is a conversation where the roles of
both the interviewer and the respondent change continually. It is a means of obtaining personal
information, attitudes, perceptions, and beliefs. An interview is administered through the help of an
interview guide or interview schedule.
Interview is known for its versatility and speed. Apparently, it allows the interviewer to
elaborate the questions and the interviewee to seek clarification. It also allows the interviewer to
observe verbal and non-verbal behavior of the interviewee.
Interview can be structured (or standardized) or unstructured. Structured interviews have the
following characteristics:
1. They are rigidly standardized and formal.

2. They are more scientific in nature than unstructured interviews.
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3. The same questions are presented in the same manner and order in each subject.
4. The choice of alternative answers is restricted to a predetermined list. The same
introductory and concluding remarks are used.
5. They introduce controls that permit the formulation of scientific generalizations.
It should be noted that collecting quantified and comparable data from all subjects in a
uniform manner introduces rigidity into the investigative procedures. This manner may prevent the
investigator from probing in sufficient depth. Thus, there are times that unstructured interviews are
used.
Unstructured interviews are flexible; meaning, they have few restrictions. Even if preplanned
questions are asked, they are altered to suit the subjects and situation. Subjects are encouraged to
express their thoughts freely. In some instances, the interview obtains the information in a very casual
manner that the respondents are not aware they are being interviewed. The disadvantage of
unstructured interviews is that they often yield data that are too difficult to summarize or evaluate.
Some researchers also find it difficult to compare data from various interviews and derive
generalizations that are universally applicable. This is due to the differences in the approach employed
during the interview.
In using interview as the data-gathering technique, the researcher should be alert to the
following sources of error:
• Error in asking questions. This happens when an inappropriate question is asked.

Consequently, the response to the question will not satisfy the objectives of the
investigation.
• Error in probing. This occurs when the interviewer does not allow the respondent
sufficient time to respond or when he/she anticipates what the response will be.
• Error in motivating. Unless respondents motivated by interviewers to answer questions
to the best of their ability, they are likely to be uncooperative.
• Error in recording responses. This occurs when the interviewer records the respondent’s
answers inaccurately by omitting information.
An interview guide for a study on the certification and accreditation system for government
internal auditors is shown in Illustrative Example 2.
Observation is used in a variety of disciplines as a tool for collecting data about people,
processes, and cultures, usually in line with a qualitative research. It enables the researcher to describe
existing situations using the five senses, providing a "written photograph" of the situation under study.
It also facilitates the description of behaviors and artifacts in the social setting chosen for study.
Before conducting an observation, it is necessary to have an observation guide. While

observation is in progress, it is important that the researcher or the data gathering staff lists all the
important results and collate them into an observer note.
To operationalize observation as a technique, the researcher identifies the attributes of the

subject that should be noted such as behavior, processes, cultures, traits, or other social artifacts.
Then, he/she devises a systematic procedure to identify, categorize, and record such attributes in a
natural situation.
Observation can be direct or unobtrusive. Direct observation, also called reactive observation,
is one where the subjects know they are being watched or observed. The danger here is the possibility
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that the subjects might deliberately react on the observation process. The other limitation of this
technique is the lack of generalizability of findings since the behavior observed from the sample
individuals might not represent the population's behavior. It is possible that the behavior shown by a
person is not representative of his/her own usual behavior. Thus, there is a need for long-term
observation to address these frailties. In an unobtrusive observation, the individuals do not know they
are being observed. The main problem here is the ethical issue involving consent and invasion of
privacy.
Observation methods provide researchers with ways to check for nonverbal expression of
feelings, determine who interacts with whom, grasp how participants communicate with each other,
and check how much time is spent on various activities. In deciding whether to use observation or not,
the researcher must consider the types of questions to be answered in the study and the site under
study, the opportunities that are available at the observation site, the representativeness of the
participants of the population at that site, and the strategies for recording and analyzing the data.
Participant observation is a special type of observation where the researcher enters a setting
being studied and actually participates in every scene being observed, analyzed, and written. The
researcher, at the same time, is an actor, an audience, a player, and a spectator. The essence of
participant observation is to place oneself within the process or conduct without disrupting it and to
take the perspective of the participants. By actually participating in the social process, the researcher
not only observes events but also experiences the emotions and concerns of the people he/she is
trying to understand.
Focus Group Discussion is used to obtain different reactions of individuals to one topic. It
consists of a relatively limited sample size, ranging from as few as 4 to as many as 12 persons. As a
result, participation rate is relatively good and everyone has the opportunity to share insights. Yet it
should be large enough to provide diversity of perceptions. Participants are reasonably homogeneous
and unfamiliar with each other. Focus groups pay attention to the perceptions of the participants.
They are not intended to develop consensus, to arrive at an agreeable plan, or to make decisions about
which course of action to take.
Some advantages of the focus group discussion are: (1) It is a socially oriented research
procedure; (2) Its format allows the researcher or moderator to probe; (3) Its discussions have high
face validity: (4) Discussions can be relatively low cost; and (5) Its format can provide speedy results.
On the other hand, the limitations of this method are: (1) researcher's lesser control of the
group discussion; (2) difficulty in analyzing the data: (3) requirement for carefully trained facilitators
or interviewers; (4) difficulty to assemble the groups; and (5) requirement for an environment that is
conducive to discussion or conversation.
The conduct of the focus group discussion is guided by an agenda. It comprises several types
of questions, specifically the opening, introductory, transition, key, and ending.
Opening questions are the round robin questions that everyone answers at the beginning of
the focus group discussion. They are designed to be answered rather quickly, usually within 10-20
seconds, and to identify characteristics that the participants have in common. The questions should
be factual or opinion-based.
Introductory questions commence the general topic of discussion. They provide participants
an opportunity to reflect on past experiences and trace their connection with the overall topic. Usually
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this type of questions is not critical to the analysis and is intended to foster conversation and
interaction among the participants.
Transition questions move the conversation into the key questions that drive the study. These
help the participants envision the topic in a broader scope. They serve as the logical link between the
introductory and the key questions. Once this type of question is thrown, the participants would
become aware of how others view the topic.
Key questions drive the study. There are two to five questions in this category. These are
usually the first questions to be developed. They are also the ones that require the greatest attention
in the subsequent analysis.
Ending questions bring closure to the discussion. They enable participants to reflect back on
previous comments. These are critical to analysis. Ending questions should allow the participants to
state their final position on critical areas of concern.
Triangulation is used to indicate that more than two methods are used in a study, with a view
to double or triple check the results. This is also called cross examination. It is a powerful technique
that facilitates validation of data through cross verification from more than two sources. In particular,
it refers to the combination and application of several data-gathering methods in the study of the
same subject or phenomenon.
The idea is that the researcher will be more confident with the study findings if different
methods lead to the same results. By combining multiple methods, the research is expected to
overcome the weakness of the study such as the possible intrinsic biases of the researcher.
In a qualitative research, triangulation can increase the credibility and validity of the results.
It attempts to map out, or explain more fully, the richness and complexity of social phenomenon and
human behavior by studying it from more than one standpoint. It also gives a balanced picture of the
situation.
In addition to triangulation method, there are also triangulations in other forms such as data
triangulation, investigator triangulation, and theory triangulation. Data triangulation involves the
multiple uses of time, space, and persons. Investigator triangulation involves multiple researchers in
an investigation. Theory triangulation involves using more than one theoretical scheme in the
interpretation of the phenomenon.
Use of Sampling
Observing phenomenon is inherent in the work of a researcher as he/she is bound to gather

data from a large number of sources. Incidentally, nobody can observe everything. Thus, a critical part
of research is the decision on what will be observed and what will not. This necessitates the use of
sampling.
Sampling is the process of selecting a few (sample) from a bigger group (population) to
become the basis for estimating or predicting a fact, situation or outcome regarding the bigger group.
A sample is a sub-group of a population that the researcher is interested in. The basic idea in sampling
is that some of the elements in a sample provide useful information on the entire population.
Sampling saves time, money, and effort of the researcher. Because the source of information
is reduced to a smaller number, oftentimes, the data gathered through the use of sampling is more
accurate and more effective. Sampling also provides more comprehensive information since more
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time is devoted to the samples. On the other hand, sampling requires expertise and involves more
care in preparing detailed sub-classification of data. It entails complicated sampling plans that are
laborious to prepare. Results may be misleading, if sampling plan is not correctly designed and
followed. Sample becomes misleading if the characteristics to be observed occur rarely in a
population.
Sampling can be probabilistic and non-probabilistic. Probability sampling is based on the

concept of random selection, that is, a controlled procedure that assures each population element is
given a known nonzero chance of selection. It is generally accepted that only probability samples
provide estimate of precision. In a non-probability sampling, each member does not have a known
nonzero chance of selection. Hence, some elements of the population may be deliberately ignored
because they do not meet certain criteria. It is important to note that allowing interviewers to choose
sample members at random (as they wish or wherever they find them) is not random sampling.
In random selection, each person or item in the universe has an equal probability of being
chosen for the sample, and every collection of persons or items of the same size has an equal
opportunity of becoming the actual sample. This is true regardless of the similarities or differences
among them, as long as they are members of the same universe. No bias enters in the selection
process, that is, the researcher cannot consciously or unconsciously influence who gets chosen to be
in the sample.
Some common methods of drawing a random sample are fishbowl draw, table of random
numbers, computer programs, calculators, and tossing of coin or dice. Fishbowl draw is done if the
total population is small. In doing this, the researcher provides number for each element using
separate slips of paper, puts all the slips into a box, and then picks them one by one without looking,
until the number of slips selected equals the sample size that he/she has decided upon. The table of
random numbers is provided in most books on statistics and research, usually shown in the
appendices. The researcher can select the sample using the table according to certain procedures.
Computer programs and calculators are also capable of producing procedures for sample selection.
Finally, the most basic form of selection is the use of coins and dices.
Random sampling can be classified into simple and complex. The simple random sampling is
done without replacement. For instance, in using the table of random numbers, if the researcher
encounters the same number again, that number is simply ignored. The complex random sampling
can be systematic, stratified, and cluster.
In a systematic random sampling, the elements are numbered consecutively from one up to
the last number. For instance, in a subdivision the researcher may choose the house unit on every -
nth line of a listing sheet. In this type of sampling, the sampling interval is computed by dividing the
population size by the sample size. The sampling ratio is arrived by dividing the sample size by the
population size.
Stratified random sampling involves separating the population elements into non-
overlapping groups, called strata, and then selecting a Simple random or systematic sample from
within. There are samples selected in all strata. The groups may be rank-ordered. For instance, in a
university the teaching staff is ranked into professors, associate professors, assistant professors, and
instructors. The researcher can stratify on two or more variables. For instance, in addition to stratifying
professorial rank, the researcher could also stratify on sex, making a total of eight groups.
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Cluster sampling is used for population that cannot be easily listed for sampling purposes,
that is, it is either impossible or impractical to compile an exhaustive list of elements composing the
target population. This is also called area sampling. The process involves sampling initially among the
clusters in the population, followed by the selection of elements within each selected cluster. For
example, in studying the church members in the Philippines, the first thing to do is to list the churches
as clusters; then get samples in terms of clusters. Afterwards, the researcher could list the members
of the selected churches, Finally, the sample members from the list of selected churches should be
taken.
Convenience sampling, also called accidental sampling, is one where the researcher merely
chooses the closest live persons as respondents. In this method, what is lost in sampling accuracy 1s
saved in time and money. A common example is the "captive audience” in an occasion like a meeting
or seminar being used as survey respondents.
In a judgmental sampling, the researcher selects samples based on his/her own knowledge of
the population and the nature or purpose of the study. He/ she picks only those who best meet the
purpose of the study. In a quota sampling, the researcher begins with a matrix of the characteristics
of the population and treats them as strata. Then he/she decides which strata may be relevant for the
study and sets quota in each stratum as samples, proportionate to the representation in the entire
population.
Whatever sampling method is used in the research, the sample size should be computed. The
basic formula for computing the sample size is shown in Figure 5-2.
n=
1 + Ne2
Where:
n = sample size
N = population size
e = desired margin of error (percent allowance
for non precision due to use of sample instead of
population
Figure 5-2. Formula for Sample Size Computation
A nationwide survey of local government units in the Philippines was conducted to assess their
financial health. The study made use of three clusters of respondents (provinces, cities, and
municipalities) with the desired margins of error at 10%, 15%, and 20%, as shown in Table 5-3. The
sample selection was also made based on regional locations of the target respondents. As shown in
Table 5-3, the population of local government units in the country is 1,704. The study had choices of
sample of 193 for a 10% margin of error, 104 for 15%, and 64 for 20%.
5.2 Data Processing
The data collected are grouped according to certain criteria the researcher deems appropriate
and presented according to the research questions to which they are applicable. The researcher
extracts meanings from these data and deduces important implications or connotations that will be
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valuable in the real world. This part constitutes Chapter 5 of the research report. It becomes the body
of the research paper as it contains the responses to the research questions.
In answering each research question, the researcher has to process the data in three stages:
presentation, analysis, and interpretation. The sequential order is important.
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Table 5-3. Sampling Plan for the Three Clusters of Respondents
SAMPLE COMPUTATION FOR PROVINCES, CITIES AND MUNICIPALITIES
PROVINCE CITY MUNICIPALITY TOTAL

REGION
N 10% 15% 20% N 10% 15% 20% N 10% 15% 20% N 10% 15% 20%
CAR 6 3 2 1 1 0 0 0 76 5 2 1 83 9 5 3
1 4 2 1 1 8 4 2 1 117 7 3 2 129 13 7 4
2 5 3 2 1 3 1 1 1 90 6 3 1 98 10 5 3
3 7 4 2 2 13 6 4 2 117 7 3 2 137 17 9 6
4-a 5 3 2 1 11 5 3 2 131 8 4 2 147 16 9 5
4-b 4 2 1 1 1 0 0 0 48 3 1 1 53 6 3 2
5 6 3 2 1 7 3 2 1 107 7 3 2 120 13 7 4
6 7 4 2 2 17 8 5 3 140 9 4 2 164 20 11 7
7 4 2 1 1 12 6 3 2 120 7 3 2 136 15 8 5
8 6 3 2 1 4 2 1 1 139 9 4 2 149 14 7 4
9 3 2 1 1 4 2 1 1 67 4 2 1 74 8 4 3
10 5 3 2 1 8 4 2 1 85 5 2 1 98 12 6 4
11 4 2 1 1 5 2 1 1 44 3 1 1 53 7 4 3
12 4 2 1 1 4 2 1 1 45 3 1 1 53 7 4 2
13 5 3 2 1 3 1 1 1 70 4 2 1 78 8 5 3
ARMM 6 3 2 1 3 1 1 1 106 7 3 2 115 11 6 4
NCR 14 6 4 2 3 0 0 0 17 7 4 2
TOTAL 81 45 29 19 118 54 32 21 1,505 94 43 25 1,704 193 104 64
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Presentation suggests putting the data into proper order and categories using certain
presentation or display techniques, such as tables and graphs. The researcher should decide whether
the data are best presented as text or in a table or graph. The choice of a particular method should be
determined primarily by the impressions or knowledge of what is likely the readership's familiarity
with the topic and the statistics.
• Tables. These offer a useful means of presenting large amount of detailed information in
a small space. A table has a title, stub, caption or column headings, body, and
supplementary notes or footnotes.
Tables can be categorized as follows:

o Univariate (also called frequency table) containing information about one variable
o Bivariate (also called cross tabulations) containing information about two variables
o Polyvariate (also called multivariate) - containing information about more than two
variables
• Graphs. A graph is based entirely on the tabled data and therefore can tell no story that
cannot be learned by inspecting a table. However, graphic representation often makes it
easier to see the pertinent features of a set of data. The graph can be a histogram, bar
chart, frequency polygon, pie chart, stem-and-leaf display, line diagram or trend curve, or
scattergram.
Analysis involves choosing from a variety of data which are pertinent and relevant, and
reducing them to forms that are intelligible and interpretable so that the relationships between
research problems and the intended answers can be studied.
Interpretation involves making inferences pertinent to the research relations investigated

from where the generalizations are drawn. This step involves (a) finding meanings, and (b) drawing
implications.
Presentation and analysis complement each other; however, they do not provide complete
answers to the research problems. Interpretation provides the needed explanations and meanings to
the available information to answer the questions. The researcher has to note the distinctions among
these three steps.
Interpretation may be carried out in many ways. The researcher may interpret the results as
he/she presents and analyzes them by drawing relationships from the data. He/she may also adopt a
higher level of interpretation where he/she compares the research data and their meanings to what
related researches have pointed out. He/she may also relate the interpretation to existing theories or
what had been accepted as true, thereby drawing points of agreement or disagreement between
them. Afterwards, the researcher draws out the corresponding implications of the research findings.
In writing this chapter of the research report, the researcher divides the data into constituent
parts to be able to answer the questions posed in the introductory part of the research. This time, the
researcher uses empirical data to answer the questions. To be consistent, the data should be
presented in the same order as the research question where the data apply.
In summary, the competency required of researcher in this research process entails using
various methods of data presentation; identifying relationships on the data gathered; explaining the
differences between data, facts, and inferences; and stating research findings clearly and accurately.
The researcher must be able to interpret the data gathered in relation to the research question.
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Data Distribution
Once the data are collected, they are processed into meaningful information. This process,
also called data distribution, entails sorting and categorizing of data and putting them into tables and
graphs. One common form of data distribution is the frequency distribution table. For example, in a
survey asking the respondents "how many hours of training in auditing have you attended for the past
year?", the distribution of responses is as follows:
Respondent Hours
A 32
B 16
C 24
D 30
E 16
F 8
G 8
H 16
I 24
J 12
This data is covered into a frequency distribution table showing the actual occurrences as
follows:
Hours Frequency
32 1
30 1
24 2
16 2
12 1
8 2
The frequency distribution can also be presented for group intervals, showing the scores in
level. This is more compact but the scores lost individual identity as shown below:
Hours Frequency
25-32 2
17-24 2
9-16 4
1-8 2
Percentages also provide a better understanding of the data collected. The percentage is
drawn by dividing the frequency of individual responses by the total number of response (n). The
cumulative frequency (c) can also be computed by adding the number of scores in one interval to the
number of above it as shown below.
Hours Frequency % cf cf as % of n
32 1 10 1 10
30 1 10 2 20
24 2 20 4 40
14
16 2 30 7 70
12 1 10 8 80
8 2 20 10 100
n=10 100
Summary statistics is another tool that can be used in this part of the research process. It
makes data more manageable by measuring two basic tendencies of distributions: central tendency
and dispersion or variability.
Central tendency provides information on the grouping of the number in a distribution by

calculating a single number that is characteristic of the entire distribution. The three measures of
central tendency are mean, median, and mode. The mean represents the average of the set of scores.
The median is the score on the midpoint of a distribution. The mode is the score or scores occurring
most frequently. It is used when the mean is inappropriate. A course in statistics of Accountancy
students provides essential competency in the use of these statistical tools.
The dispersion or variability describes the way in which the scores are spread out about the
central point. This is particularly valuable when comparing different distributions. The measures of
dispersion or variability are range, variance, and standard deviation. The range, which is the simplest
measure, is the difference between the highest and lowest scores in a distribution of scores. The
variance provides for the mathematical index of the degree to which scores deviate. A small variance
indicates that most of the scores in the distribution lie fairly close to the mean, while a large variance
indicates that the scores are widely scattered. Thus, the variance is directly proportional to the degree
of dispersion. The standard deviation represents the given distance of the scores from the mean of a
distribution. It is helpful in describing the results of standardized tests. It is computed by taking the
square root of the variance.
Data Analysis and Interpretation
Data analysis involves working to uncover patterns and trends in data sets; data interpretation
involves explaining patterns and trends. Once the data are presented in data distribution tables using
descriptive statistics, they are further analyzed.
One method of data analysis is the use of inferential statistics. From the sample data, the
researcher infers what the population suggests. He/she makes judgments of the probability that an
observed difference between groups is a dependable one, or that might have happened by chance in
the study. Usually, the researcher links each of the inferential analyses to specific research questions
or hypotheses that were raised in the research, or notes any model that was tested that emerged as
part of the analysis. Inferential statistics is a subject that should be thoroughly understood by a
researcher doing studies in Accountancy.
The use of correlation analysis is common in many social researches. As previously stated,
correlation analysis is capable of determining the existence of linear relationship or association
between variables, but it is unable to prove anything about cause-and-effect relationship.
Correlation has two major dimensions: direction and strength. The direction can either be
positive or negative. A positive correlation is one in which both variables vary in the same direction. If
an increase in the value of one variable is accompanied by an increase in the value of the other variable
the relationship is positive. If the decrease in one variable is accompanied by a decrease in the other
variable, the relationship is also called positive. If an increase in one variable is accompanied by a
15
decrease in the other variable, the relationship is called negative or inverse. The fact that the
relationship is negative does not mean that the variables are less strongly related than the variables
in a positive relationship. This merely shows that they vary in opposite directions. The signs show the
direction of the relationship, not the strength.
The strength of relationship refers to the degree of correspondence between the variation in
scores of one variable and the variation in the scores of the other variable. Basically, a relationship is
said to exist between two variables when a change in the scores of one is accompanied by a change
in the scores of the other variable. At one extreme, the scores of one variable could vary drastically
while the other variable remains constant in value. This is called zero or independent relationship. On
the other extreme, a change in the scores of one variable is accompanied by corresponding and
predictable changes in the value of the other variable. This is called perfect or pure relationship.
Usually, the researcher finds relationships that are stronger than zero but substantially short of
perfection.
The notion of relationship is very important for explanation and prediction of social events
and phenomena. A zero relationship (independence) essentially means that knowledge of one variable
tells absolutely nothing about the score of the other variable. However, if there is a perfect
relationship, then knowing the score on one variable will allow the prediction of the score on the other
variable with one hundred percent accuracy. In intermediate case (between 0 and 1), the relationship
is stronger than zero but short of perfection.
To find out if the relationship that has been determined through samples is also true among
the population, certain tests like the t-Test is done at certain level of significance. In this case, a
significance probability is obtained. The decision rule is "if the corresponding significance probability
is less than the level of confidence, the correlation is significant."
The other analysis used is regression. This is used to predict one variable based on the other.
It estimates the value of the dependent variable based on a selected value of the independent
variable. For instance, the following sets of variables can be predicted using regression analysis:
Independent Variable Dependent Variable
Sales Earnings
Investment Outcome
Number of products produced Cost
Work experience Salary
Efforts Results
The analysis of data provides inputs to interpretation. The researcher combines the results of
data analysis with value statements, criteria, and standards in order to produce judgments and
conclusions. Interpretation seeks to explain and find meanings in the data that were analyzed.
There are no hard and fast rules for analyzing and interpreting data, as each type of research
entails different ways of doing them. There are also disciplinary practices that are dominant in a
particular field or area or practice. For instance, qualitative research entails different analytical
methods such as event analysis, domain analysis, content analysis, discourse analysis, and the like.
Illustrative Example 1 shows a sample write-up for data collection. It shows the location of the
study, sampling procedures, methods of data collection and instruments used, and methods of data
16
analysis. It also shows the general profile of the enterprises and the demographic profile of individual
respondents.
Illustrative Example 2 is an interview guide for a study on the certification and accreditation
system for government internal auditors.
Illustrative Example 3 is a sample of data presentation for the assessment of financial

resources. It also shows the problems of small and medium enterprises (SMEs) and the reasons for
their survival.
5.3 Research Application
This part deals with the capacity of the researcher to translate research outputs into
meaningful plans of actions or other modes of interventions that will provide value to the discipline,
society, organizations, and communities. Following are the requisite competencies that a researcher
should have in this phase:
• Relate research findings with the needs of a particular discipline, society, organization or
community;
• Explain how social research is used to support social and economic policy;
• Translate research findings into meaningful plans of actions or strategies
• Design a roadmap to maximize the utilization of research findings
• Identify areas for possible future research agenda based on the findings of the study;
• Discuss the contributions of research in building the knowledge in a discipline; and
• Set up events or occasions where research findings can be disseminated.
When a research report is prepared, the application phase is the last chapter with the
following components: (1) summary of findings, (2) conclusions, and (3) recommendations.
Summary of Findings. The summary presents a general overview of the study from the
problem and research objectives to the methodology used to end up with a summary of significant
findings which provide answers to the research questions.
Conclusions. These are the logical and valid outgrow the of the findings. Conclusions should
be based upon the findings. This part should appropriately answer the specific questions raised at the
beginning of the investigation in the order they are given under the problem statement. The study is
almost meaningless if in the conclusions the questions raised are not properly answered.
The conclusions should be formulated concisely. They should convey all the necessary
information resulting from the study as required by the specific questions.
Recommendations. From the results of the study, the recommendations are drawn which
could be in terms of providing solutions to existing problems, developing strategies and actions, and
improving policies and policy processes. The criteria used in choosing from the alternative courses of
actions should be specified. Recommendations should aim for the ideal but must be feasible, practical,
and attainable. It is useless to recommend the impossible. Alternative courses of actions should be
specified.
Finally, the researcher should prepare the roadmap related to the recommendations. This
constitutes the value-adding characteristics of the research.
17
Illustrate Example 4 shows the summary of findings, conclusions, and recommendations of a

study about SMEs while Illustrative Example 5 presents the lessons learned from the experience of a
cooperative that has been the subject of a research.
18
Illustrative Example 1 Data Collection Write-Up
Locale of the Study
Batangas is regarded as an agricultural-industrial center that is rich in experiences in small and

medium enterprises (SME) development. It is a major national and international gateway through
south west of the Philippines largest island of Luzon and to the country’s major industrial provinces
and growth centers collectively known as CALABARZON (Cavite, Laguna, Batangas, Rizal, and
Quezon). Bounded on the east by Cavite and Laguna and the South China Sea on the west, Batangas
has a land area of 3,185.8 square km. The population as of year 2000 is 1,905,348. The province has
three cities Batangas City, the provincial capitol, and the cities of Lipa and Tanauan. It has 31
municipalities distributed in four congressional districts.
Although Batangas is famous for trading and tourism attraction, it has been predominantly an
agricultural province. Known for Batangas "barako" coffee, beef, pepper, and other agricultural
products, Batangas continues to dominate the supply of these food items in Metro Manila.
Batangueños supply Manila with 25 percent of "tilapia" and other fish products such as the delicious
"maliputo" and "tawilis," 30 percent of meat and poultry, and 50 percent of table eggs. Sugarcane
fields in the westerm portion of the province regularly supply the two sugar mills in the area.
However, banana and mango are taking the place of sugar production. High value crops are being
produced while cutflower farms are increasing.
The province has a long tradition in metal fabrication as evidenced by the "balisong." It is also known
for exportable baby dresses and delicately embroidered garments.
Batangas is a suitable home for plant facilities of industrial estates. With well- defined industrial
zones and very satisfactory road network, the provinces destined to host more industries. The oil
companies, petrochemical complexes food processing plants, coal, grains, cement handling
facilities, shipbuilding and metal fabrication establishments are now well established in Batangas.
Of the eleven provinces in Region IV, Batangas is considered the prime Supplier of poultry products
and high-grade livestock meat of Metro Manila and other parts of the country.
At the end of year 2000, the Office of the Provincial Veterinarian in Batangas in registered a total of
78 commercial swine raisers and 99 commercial poultry in the province (Table 1). These numbers
do not include the backyard production facilities that are owned and managed by single families as
subsistence production. The Bureau of Animal Industry reported that there are 52 feed mills
operating in the province, representing 58 percent of the 90 feed mills in Region IV (Table 2).
19
Table 1. Number of Registered Feed mills and Commercial Swine and Poultry Raisers in Batangas by Size
TYPE OF ENTERPRSE SMALL MEDIUM LARGE TOTAL

Feed mills 32 15 5 52
Swine Farms 53 6 19 78
Poultry Farm 93 5 1 9
Total 178 26 25 229
Percentage share 78% 11% 11% 100%
Table 2. Number of Feed mills in Region IV
PROVINCE NO. OF FEEDMILLS PERCENT

Batangas 52 58
Cavite 8 9
Laguna 9 10
Mindoro Oriental 2 2
Quezon 14 16
Rizal 5 6
Total 90 100
Of the 229 agri-based enterprises coming from the three sub-sectors in the province, 78 percent
are small, 11 percent are medium, and 11 percent are large. The classification of feed mills was
made after the researcher has conducted a preliminary survey of the feed mills with ten or more
years ot operations based on the list of the Bureau of Animal Industry. A survey letter was sent to
different feed mills for the purpose of determining their classification based on asset size as of
December 31, 2000. Regarding the Piggery and poultry farms, the classification of the size in terms
of the number of heads maintained as average stocks was based on the list provided by the Office
of the Provincial Veterinarian in Batangas.
These feed mills and farms are scattered in various municipalities but many are located in the
eastern part of the province (Table 3). The places that registered the highest number of feed mills,
piggery, and poultry farms are San 0Se, with 69 enterprises (30%); Lipa City, with 57 enterprises
(25%); Mataas na Kahoy and Rosario, each with 29 enterprises (13%); and Malvar, with 12
enterprises (5%).
The sample enterprises of this study are located in four municipalities found in the eastern part of
the province, namely: Malvar, Mataas na Kahoy, Rosario, and San Jose, and the City of Lipa. These
areas were identified by simple random sampling done to select the sample enterprises and not
through a process of selecting the specific municipality or city. In brief, the areas were not
purposively chosen. They happened to be where the sample enterprises are located. Since the five
places registered the highest number of enterprises in the province, they also had the highest
probability of being identified as the site of the study.
20
Table 3. Number of Registered Feedmills and Commercial Swine and Poultry Farms in Batangas by
Municipality
MUNICIPALITY FEEDMILLS SWINE POULTRY TOTAL PERCENT

FARMS FARMS SHARE
Agoncillo 1 - - 1 0.44
Balayan 1 - - 1 0.44
Batangas City 3 4 - 7 3.06
Bauan 1 - - 1 0.44
Ibaan 3 7 - 10 4.37
Lemery - 1 - 1 0.44
Lipa City 20 17 20 57 24.89
Malvar 2 10 - 12 5.24
M. Kahoy 2 19 8 29 12.66
Padre Garcia 2 - - 2 0.87
Rosario 3 14 12 29 12.66
San Jose 6 4 59 69 30.13
San Pascual 3 - - 3 1.31
Sta Teresita - 1 - 1 0.44
Tanauan City 3 - - 3 1.31
Taysan 2 1 - 3 1.31
Total 52 78 99 229 100
Sampling Procedures
A three-level sampling was employed with the SME sector in Batangas province as the primary
sampling units (PSUs). It was noted during the conduct of the study that there is no single source of
data on the total number of SMEs in the province. Hence, the population of SMEs in the province
cannot be presented.
The information about the various sub-sectors was gathered from different agencies of the
government. Of the various sub-sectors of SMEs, three were purposively chosen to have best met
the following criteria: (a) agri-based in | nature, (b) existing for at least ten years, and (c) most
prevalent in the province. The sub-sectors identified were: feed mills, swine farms, and poultry
farms.
21
The stages in the selection of sample are as follows:
Stage 1 Selection of sub-sectors
Primary sampling units (PSU): SME sector in Batangas Province
Sampling Scheme: Purposive sampling of three sub-sectors that best meet the
following criteria: (a) agri-based in nature, (2) existing for at least ten years, and (c)
most prevalent in the province.
n = 3 sub-sectors of SMEs
Stage 2 Selection of Enterprises
Secondary Sampling Units (SSU): 3 sub-sectors of SMEs
Sampling Scheme: Simple random sampling of five enterprises per sector
n = 15 enterprises
Stage 3 Selection of individual respondents
Tertiary sampling units (TSU): 15 respondents
Sampling Scheme: Simple random sampling of 15 respondents per enterprise,

representing three (3) groups of respondents: management group (5), input
provider group (5), and output user group (5).
As noted, the process of sampling in each of the three stages involved different sampling schemes.
In the first stage, purposive sampling was done in the selection of three sub-sectors-feed mills,
swine farms, and poultry farms. In the second stage, simple random sampling of five enterprises
from each sector was done by drawing the names of the enterprises. A total of 15 enterprises were
taken as samples. The third stage was done by simple random sampling to gather 15 respondents
coming from each enterprise representing each of the three groups of respondents; management
group, input providers, and output users. The names of all employees, regular suppliers, and regular
buyers were listed and assigned a corresponding number and drawn. A total of 22 respondents
were obtained. Of these, 179 or 80 percent responded (Table 4).
Table 4 also shows there was a 100 percent retrieval of questionnaire in the management group,
80 percent in the input providers, and 59 percent in the output users group.
22
Table 4. Number of Target and Actual Individual Respondents
INPUT
TYPE OF NO. OF Management OUTPUT USERS TOTAL
PROVIDERS
ENTERPRISE ENT.
Target Actual Target Actual Target Actual Target Actual
Feedmills 5 25 25 25 25 25 25 75 75
Swine raisers 5 25 25 25 20 25 16 75 58
Poultry raisers 5 25 25 25 15 25 6 75 46
Total 15 75 75 75 60 75 44 225 179
% of actual over target 100% 80% 59% 80%
Methods of Data Collection and Instruments Used
This study used survey as the primary method of data collection. The survey techniques used
include personal interview and self-administered questionnaires.
For each of the 15 enterprises, interviews among key officials were done to establish the company
profile and find out the enterprise policies and practices. Included among the interviewees were
managers of different departments like production, marketing, administration, and finance. They
were asked questions depending on their respective functions. In the case of swine and poultry
farms, the farm managers and some owners were also interviewed.
Two sets of interview schedule were used--one for the feed mills and the other for swine and
poultry farms. These were prepared separately because of the differences in the nature of their
operations specifically in terms of production and marketing. A set of structured questionnaires was
used to show the extent of agreement or disagreement of the respondents on the processes
identified to be significant in the institutionalization of SMEs and to evaluate the various
organizational and institutional variables.
The first part of the questionnaire used the Likert scale of. 1 to 5, identified as follows:
1 - Strongly Disagree
2 - Disagree
3 - Undecided
4 - Agree
5 - Strongly Agree
The second part used a rating scale where attributes were rated from “poor to excellent” using the
following scores:
1 - Poor
2 - Fair
3 - Good
4 - Very Good
5 - Excellent
The researcher administered the questionnaires with the assistance of five enumerators who were
previously trained. The questionnaire was pre- tested with 30 respondents from two other feed
mills located in Lipa City. Pre- testing allowed certain revisions in the instrument before the survey
proper.
23
The researcher also observed the operation of the enterprises and held dialogues with some key
informants such as company owners, employees as well as suppliers of materials and buyers of
products.
Secondary data were gathered on the various processes that contributed to the institutionalization
of SMEs. These secondary sources include previous studies, annual reports of government agencies,
and articles published in different journals.
Methods of Data Analysis
The processes in the evolution of SMEs in terms of the level of agreement or disagreement
of the respondents on the individual process are presented using the weighted mean. In the
interpretation of responses using the weighted mean, the following scale and verbal interpretation
were used:
Scale Interpretation
1.0 – 1.49 Strongly Disagree

1.5 – 2.49 Disagree
2.5 – 3.48 Undecided
3.5 – 4.49 Agree
4.5 – 5.0 Strongly Agree
The quantitative data regarding the state of SMEs are presented using descriptive statistics
like mean and standard deviation computed by the Statistical Analysis Software. The assessment of
the respondents on the various aspects of organization and state of institutionality was scaled from
1 (the lowest) to 5 (the highest). Each aspect of the variables was assigned a value judgement using
the following scale:
Scale Value Judgement
1.0 – 1.49 Poor

1.5 – 2.49 Fair
2.5 – 3.48 Good
3.5 – 4.49 Very Good
4.5 – 5.0 Excellent
In measuring association between variables, the study used correlation analysis, specifically
the Spearmen's Correlation, an ordinal measure of association. This measure allows the study of
relationship between sets of ranked data. It uses rho, also called Spearman's coefficient of rank-
order correlation (rs) to measure the strength of relationship. The value of rs varies +1 when all pairs
of ranks are identical; -1 when no pairs are identical; and 0 when there is no relationship between
the two variables, that is, no pattern to the pairs of ranks. In brief, a value of -1.00 indicates perfect
negative correlation and a value of 1.00 indicates perfect positive correlation among the ranks. A
rank correlation of 0 indicates that there is no strong association among the ranks. In this research,
as in most social science researches, the following ranges are used:
Less than 0.5 - weak correlation

0.5 and above - strong correlation
24
The significance probability determines the significance of correlation. In this study, the 1
percent level of confidence is used. Thus, the decision rule is "If the corresponding significance
probability is less than the level of confidence (1%) the correlation is significant."
To test the significance of differences between the random samples in the three groups of
respondents management group, input providers, and output users the Kruskal-Wallis H test was
used. This test, developed by W.H. Kruskal and W.A. Walis in 1952, is used in ordinal-level (ranked)
data. No assumptions about the shape of the populations are required by the test However, the
samples selected from the populations must be independent. In this variance analysis, the percent
significance level was also used in the study.
General Profile of the Enterprises
Table 5 presents the profile of the enterprises indicating the location; production capacity;
size; number of years in operation; organizational form and number of employees, regular
suppliers, and regular buyers.
As seen in Table 5, the feed mills studied are all corporations; two are small enterprises and
three are medium-sized businesses. All of them have been operating for the last ten years. The
longest period of operation is 13 years.
Production capacity of the feed mills averages at 754 bags per day with 1,500 bags as the
highest daily production. The number of employees ranges from 20 to 48 and averages at 81.
Regular suppliers of feed ingredients, medicine, and other chemicals average at 27 per feed mill
while buyers at 75 per feed mill. It can be noted that feed mills have the highest number of
employees, suppliers, and buyers among the three subject sub-sectors.
Of the five piggery farms sampled, two are sole proprietorships, two are corporations, and
one is a cooperative (which has plan of converting into a corporation). Three are small and two are
medium-sized enterprises on the basis of the number of sows maintained. One is near to becoming
a large enterprise. Two of the swine farms established in the early 1980s have the longest period of
operation of 16 years.
The sow level ranging from 214 to 500 averages at 300 heads per farm. The average number
of employees is 17 per farm. The number of regular suppliers of feeds, medicines, and vaccines
averages at five while that of buyers at four per farm. All the poultry farmers interviewed are sole
proprietorships. Two have been operating in the early 1970s. Four enterprises are small and one is
a medium-sized farm that is about to become a large farm based on the number of heads
maintained. This particular farm is engaged in broiler contract growing while the other four are
engaged in layers' production.
The number of heads maintained by the poultry farms averages at 21960 with 3,000 heads
as the lowest and 50,000 heads as the highest number or stocks. The average number of employees
is 11 per farm. Regular suppliers buyers average at five and four per farm, respectively.
25
Table 5. Profile of Respondent SMEs
SME LOCATION PRODUCTION SIZE YEARS OF ORGANIZATION NO. OF NO. OF NO. OR

CAPACITY OPERATION FORM EMPLOYEES REGULAR REGULAR
SUPPLIERS BUYERS
Feed Mills Bags/day
1 San Jose 1,500 M 11 Corp 48 40 200
2 Lipa 320 S 11 Corp 30 12 50
3 Rosario 500 M 10 Corp 20 41 40
4 Mataas 650 S 13 Corp 24 30 54
na Kahoy
5 San Jose 800 M 10 Corp 31 10 30
Average 754 11 31 27 75
Piggery Sows
1 Malvar 250 S 12 Prop 16 20 4
2 Lipa 214 S 10 Corp 11 12 3
3 Lipa 250 S 10 Corp 12 3 20
4 Malvar 289 M 16 Corp 17 8 8
5 Lipa 500 M 16 Prop 30 6 4
Average 300 13 17 10 8
Poultry Chicken
1 San Jose 20,000 S 14 Prop 10 7 8
2 San Jose 24,800 S 30 Prop 12 5 7
3 Lipa 50,000 M 28 Prop 22 1 1
4 Rosario 6,000 S 10 Prop 5 5 4
5 Rosario 3,000 S 10 Prop 6 5 2
Average 21,960 18 11 5 4
Total 294 205 436
Demographic Profile of Individual Respondents
Table 6 shows the profile of the individual respondents in terms of se highest educational
attainment, and years of employment or business transactions with the enterprise.
Of the 179 individual respondents, 52 percent are male. When the respondents are grouped
according to categories (management, p providers, and output users), males accounted for 57
percent and 59 percent the input providers and output users groups, respectively. The distribution
differs in the management group where male represents 44 percent only.
Table 6 also suggests that as to highest educational attainment, major of the respondents
(72%), regardless of group, are college graduates. Even when they are grouped as management,
input providers, and output users, college graduates still comprise the majority in all groups.
However, for the management and output providers, high school graduates constitute 2 percent in
both groups. The highest educational attainment is master s degree earned by only one respondent
(1%) in the management group. There are eight Doctors of Veterinary Medicine (4%) who are evenly
distributed in the three groups of respondents. The data on educational attainment implies the
adequacy of individuals with college preparations among stakeholders of the SMEs. But they also
reveal a low level of interest among respondents to pursue graduate studies.
About half (44%) of the respondents have been working in or doing business transactions
with the enterprise for 5 years and below, 36 percent have six to 10 years of employment or
business transactions with the enterprise, and a small number (20%) have over 10 years. The same
26
pattern remains even when the respondents are grouped as management, input providers, and
output users. This implies the commonality of the length of employment among employees and
period of business affiliation of suppliers and buyers with the SMEs.
Table 6 also shows that the average year of employment or business transactions with the
enterprise of the respondents is 6.9, with the management group having the shortest at 6.4 and
the input providers the longest at 7.6 years.
Of those belonging to the management group, majority (55%) are rank and file employees.
Thirty five percent are employees belonging to the managerial and supervisory positions, while 11
percent are working owners or stockholders.
Table 6. Demographic Profile of Individual Respondents
MANAGEMENT INPUT OUTPUT USERS TOTAL

CHARACTERISTICS
PROVIDERS
Number Percent Number Percent Number Percent Number Percent
Sex
Male 33 44 34 57 26 59 93 52
Female 42 56 26 43 18 41 86 48
Total 75 100 60 100 44 100 179 100
Highest Educational Attainment
High school 19 25 0 0 1 25 30 17
graduate
College 3 4 1 2 8 18 12 7
undergraduate
College graduate 49 65 56 93 23 52 128 71
Doctor of Veterinary 3 4 3 5 2 5 8 4
Medicine
Master’s degree 1 1 0 0 0 0 0 0
Total 75 100 60 100 44 100 179 100
Years of Employment/Business Relations with Enterprise
1 to 5 years 36 48 23 38 19 43 78 44
6 to 10 years 27 36 21 35 17 39 65 36
11 to 18 years 12 16 16 27 8 18 36 20
Total 75 100 60 100 44 100 179 100
Average number of 6.4 7.6 6.8
years
Classification of Position in the Management Group
Manager/Supervisor 26 34 26 34
Rank and file 41 55 41 55
employee
Working owner 8 11 8 11
Total 75 100 75 100
Source: Mendoza, Rufo R. 2021. Institutionalization of Agri-Based Small and Medium Enterprises in
Batangas Province, Philippines. Unpublished doctoral dissertation. University of the Philippines Los
Baños. College, Laguna.
27
Illustrative Example 2
Interview Guide
Note to Interviewees:
This interview is in line with the Presidential Anti-Graft Commission's Project Study on
Certification/Accreditation System for Government Internal Auditors. The interview is being
conducted for agencies that were identified to have certification and/or accreditation programs or
services for individuals performing specific technical or professional occupations. It aims to gather
data related to the following:
a. policy Landscape of the programs or services (in terms of enabling laws and institutional
rules and policies);
b. intra-and inter-organizational arrangements;
c. modalities and processes pertaining to the certification and/or accreditation; and
d. documentary requirements
We will appreciate your specific answers to the questions listed below. Your cooperation in providing
us certain documents related to the items will be very much appreciated.
1 What certification program(s) or service(s) for individuals does your agency have?
2 What specific areas and skills/expertise are covered by the certification program or
services?
3 What are the legal bases/enabling laws of your certification? (Please provide 3 copy.)
4 What internal issuance(s) support your certification? (Please specify executive or

administrative orders, memoranda, and circulars and provide copy.)
5 What are the objectives of the certification?
6 Who requires or uses the certification? (Please specify organizations requiring the
certification and for what purpose?
7 How long has your certification been in existence?
8 What unit in your agency performs/ manages the certification program?
9 What are the major functions and responsibilities of the unit?
10 How is the unit related or connected with the other units in the organization? (Please
provide organizational chart.)
11 How many staff does the unit have?
12 How many certifications are processed in a month?
13 What are the bases in giving certification? (Please specify whether written examination,
oral examination, interview and the like.)
28
14 What are the processes involved from application to the grant of certification? (Please
specify processes and if possible the process flow.)
15 What are the documentary requirements for the application?
16 What are the documents supporting the approved certification?
17 How much does an individual pay for the whole certification?
18 Who are the signing authorities? (Specify position approving each process from application
to certification.)
19 What is the term of certification (in number of years)?
20 What are the renewal requirements and processes?
21 What are the problems you have encountered in the past regarding the process of
certification?
22 What are the current problem or issues that you have faced with regarding certification?
29
Data Presentation
Assessment of Financial Resources
Of the feed mills interviewed, only one does not prepare a budget. The other four feed mills
prepare financial plans at least once a year and revise them as often as the need arises. The owners
or stockholders provide more funds for three of the five feed mills. Nonetheless, all of them do not
require periodic capital contributions from owners. Whenever there are excess funds, these are
primarily invested on long-lived assets like building and machineries as well as in allied businesses
like breeding farms (Table 1).
Table 1. Aspects of Financial Resources of Small and Medium Enterprises
ASPECTS FEED MILLS PIGGERY POULTRY

(n = 5) (n = 5) (n = 5)
Do you prefer company financial
plan/budget?
• Yes 4 5 5
• No 1 0 0
What is the dominant source of your
operating capital?
• Owners/stockholders 3 4 5
• Credit 2 1 0
Do you encounter difficulty in
collecting receivables?
• Yes 5 4 5
• No 0 1 0
Credit term enjoyed from supplies
• 1-45 days 1 2 2
• 46-90 days 3 3 3
Do you encounter difficulty in paying
your supplier?
• Yes 3 2 3
• No 2 3 2
Do you require periodic capital
contributions from owners?
• Yes 0 2 4
• No 5 3 1
Where do you primarily invest your
excess funds? (multiple responses)
• Long-lived assets 3 1 1
• Business Expansion 4 3 5
• Improvement of Stocks 4 4
Do you have internal auditing as a
separate unit?
• Yes 4 3 0
• No 1 2 5
All feed mills encounter difficulty in collecting receivables. To resolve the problem on
collection, legal action is taken against the bad debtors. Demand letters are sent while penalties
30
and interests are charged. As a precautionary measure, collateral are required and credit limits are
monitored.
These feed mills enjoy credit term from suppliers ranging from 15 to 90 days depending on
the kind of raw material. Corn, a major raw material, is purchased with relatively shorter credit
terms of 15 days. This results in a tight cash position when payment to suppliers becomes due. Only
two do not experience difficulty in paying their suppliers. Credit terms are usually extended when
the feed mills fail to pay on time. Suppliers also require postdated checks. Thus, it is generally
observed that financial problems primarily result from difficulty in the collection of receivables.
When financial position is tight, funds are sourced from personal accounts of stockholders
of the five feed mills. There are also open credit lines from the bank that can be tapped to pay
suppliers on time. Only one of the five feed mills has no internal auditing as a separate unit. The
auditors directly report to the board of directors or to the manager.
All the piggery farms prepare a financial budget either yearly or monthly. In one of the farms
interviewed, the creditors provide more of the funds necessary in running the affairs of the business
particularly in an on-going construction. However, in the other four, the owners provide more of
the needed funds.
Excess funds are primarily used for business expansion and improvement of the livestock.
Others are invested in allied businesses like feed mill. One piggery farm invests in a wildlife and
recreational park within the farm premises.
To remedy the problems in delayed collection of accounts that were experienced by four
of the five piggery farms, legal action was taken against those in default. These farms enjoy credit
term from suppliers ranging from 30 to 90 days. One enjoys a flexible credit term owing to personal
contacts and mutual trust with suppliers.
Two piggery farms have no internal auditing as a separate unit but have, nonetheless, a
monthly audit of accounts. The auditors directly report to the board of directors or to the manager.
Budgeting is done in all poultry farms. Estimates of income and expenses are not formally
presented in budget format but simply as an aid in meeting financial obligations and determining
expected gains. Because they are sole proprietorships owners invest additional capital whenever
needed. Excess funds are primarily used for business expansion. All farms have experienced
difficulty in collecting receivables, but only one resorted to legal action. The others resort to follow-
ups or "pakiusapan” system. These farms enjoy credit term from suppliers ranging from 30 to 60
days. All have no internal auditing. The most common financial problems are related to tight cash
position resulting from difficulty in collection of receivables.
It can be noted that the owners or stockholders, not the creditors, represent the primary
source of capital among SMEs. This supports the observation of the Institute of Southeast Asian
Studies (ISAS), from 1986 to 1988, that SMEs have low leverage ratios since they usually do not have
much debt - a finding that is similar across studied by ISAS, namely: Indonesia, Singapore, Malaysia,
Thailand, and Philippines.
The findings of Salazar, et al. (1988) that collection of receivables is one of the primary
Problems faced by SMEs in the Philippines, is also confirmed in this study. An assessment of SMEs
in Table 2 reveals that their financial resources are generally good (overall mean score of 3.40). This
implies that the SMEs have adequate resources needed to meet the current as well as the long-
31
term needs or the business (5.37). It also shows that funding sources are easily accessible (3.39),
hence, they are immediately available when the need arises (3.39).
In terms of the viability of business operations to which funds are tied up or used, the
respondents rate the SMEs as "good" (3.42). It appears that the subject SMEs have chosen the right
kinds of investment, hence, it was generally observed that funds were utilized to generate more
returns to the organization (3.34).
The scheme of forecasting the sources and uses of funds was also rated "good" (3.34). This
is coupled by the presence of safekeeping mechanisms to ensure proper custody of funds. Control
measures on financial resources are also in place and rate "good" (3.49).
Problems of SMEs
Problems besetting the feed mills differ from one company to another--from shortage of
supply, poor quality, and unstable price of raw materials to low collection efficiency (Table 3). One
feed mill cited occasional machine breakdown as another major problem along with occasional
shortage of raw materials.
The foot and mouth disease (FMD) outbreak in mid-1990s affected two piggery farms. One
was directly infested causing high mortality of stocks. It continued to operate using the weanlings
that survived the disease, which were believed to be FMD resistant. Two piggery farms also cited
loose management/ internal control as the D1ggest problem that they have encountered.
The main problems encountered by poultry farms include capital shortage, Occurrence of
pests, and low selling prices of products.
Reasons for Survival of SMEs
The respondents cited various reasons why the business enterprises have survived over the
years. As shown in Table 4, the commitment to produce quality feeds consistently earned the
loyalty and patronage of the buyers among the feed mills. The quality of management capped with
sound policies in terms of customer service and employees' welfare and benefits are also vital
factors for survival.
Among piggery farms, the manner by which the farms are managed primarily explains why
they have survived. This is manifested in an efficient system of livestock farming that is operates in
an environment conducive to growth in stocks. Animal housing, clean surrounding, feeding
program, and proper vaccination are also very important for the piggery farms to survive. How
management deals with workers also count much because workers have direct influence in the
improvement of livestock quality.
The poultry farms regard efficient production management as the primary cause of survival
and continuous growth. This is shown from the time of selecting the foundation stock up to the
culling and marketing of layers. Housing, space, and ventilation are also regarded as important. One
proprietor who has been in the business for 14 years said that in order to survive in the business,
the management should refrain from borrowing money from banks. She reasoned that interests on
borrowed funds only eat up profits that may cause the downfall of a business.
32
Table 2. Mean Scores of the Assessment of Financial Resources of SMEs as Rated by Management, Input
Providers, and Output Users
INPUT OUTPUT OVERALL

CRITERIA MANAGEMENT VALUE
PROVIDERS USERS MEAN
Adequacy
The extent of adequacy of
financial resources to meet
the current needs of the
business 3.27 3.63 3.14 3.36 Good
The extent of adequacy of
financial resources to meet
the long-term needs of the
business 3.29 3.62 3.20 3.38 Good
Mean 3.28 3.63 3.17 3.37 Good
Access
The degree of accessibility of
funding sources to the
business 3.41 3.55 3.14 3.39 Good
Availability
How funds necessary to
meet the needs are
immediately provided 3.37 3.58 3.14 3.39 Good
Viability
The degree of viability of the
business operations to which
finds are used 3.43 3.58 3.18 3.42 Good
Utilization
The manner of fund
utilization to generate
benefits to the organization 3.24 3.48 3.32 3.34 Good
Forecasting
The manner of forecasting
the sources and uses of
funds 3.35 3.58 3.36 3.43 Good
Control
The presence of safekeeping
and control mechanisms 3.49 3.57 3.39 3.49 Good
Overall mean score 3.36 3.58 3.23 3.40 Good
Standard deviation .83 .64 .58 .37
Legend: 1.01-1.49 = Poor 1.5-2.49 = Fair

2.5-3.49 = Good 3.5-4.49 = Very Good 4.5-5.0 = Excellent
33
Table 3. Common Problems Encountered by SMEs
F (n=5)
SMEs PROBLEMS
Multiple Responses
Feed mills Shortage of raw materials supply 5
Poor quality or raw materials 5
Unstable price of raw materials 5
Low collection efficiency 5
Occasional machine breakdown 1
Piggery Foot and mouth disease 2
Loose management/internal control 2
Poultry Capital Shortage 5
Occurrence of pests 5
Low selling price of products 5
Table 4. reasons for survival of SMEs.
F (n=5)
SMEs PROBLEMS
Multiple Responses
Feed mills Commitment to produce quality feeds 5
Sound management policies on:
Customer Service 5
Employee welfare and benefits 5
Piggery Sound management policies on:
Animal Housing 5
Clean surrounding 5
Feeding program 5
Proper vaccination 4
Management-employee relations 3
Poultry Efficient production management on:
Foundation stock selection 5
Proper culling procedures 3
Housing, space, and ventilation 5
Marketing strategies 3
Refrain from borrowing money 1
Source: Mendoza, Rufo R. 2001. Institutionalization of Agri-Based Small and Medium Enterprises in Batangas
Province, Philippines. Unpublished doctoral dissertation. University of the Philippines Los Banos. College,
Laguna
34
Summary, Conclusions, and Recommendations
Summary of Findings
The study sought to (1) identify the processes in the evolution of SMEs; (2) determine the
level of agreement or disagreement of the respondents on the importance of the identified
processes in the evolution of SMEs; (3) assess the current conditions of the SMEs in Batangas
province in terms of the following organizational variables: internal variables such as leadership,
production policies, market access, technology, human resources, and financial resources; and
external variables such as enabling, functional, normative, and diffuse linkages; (4) assess the
current state of SMEs as an institution based on the following indicators of institutionality: technical
capacity, normative commitment, innovative thrust, environmental image, spread effects of
activities, autonomy, influence, and public| acceptance; (5) determine how the internal
organizational variables are related to the external variables and the indicators of institutionality of
SMEs; (6) determine how the external variables are related to the institutionality of SMEs; and (7)
determine if there are significant differences on the assessment of the three groups of respondents
in the indicators used in the study.
The data pertaining to the processes that contributed to the institutionalization of SMEs
were gathered through a survey. The respondents were requested to signify the level of their
agreement or disagreement on the individual process. Frequency counts, percentages, weighted
means, and ranking were used to analyze the responses.
The data relative to the current conditions as well as the state of institutionality of SMEs
were collected through a survey. The techniques used were personal interviews, questionnaires,
field observation, and dialogue. The survey was conducted in four municipalities and one city in
Batangas Province. Fifteen agri-based enterprises were randomly selected as samples five coming
from each of three sub-sectors of feed milling piggery, and poultry-raising. A total of 225 individual
respondents were randomly chosen from the 15 enterprises to represent three groups-
management, input providers, and output users. Of these, 179 subjects responded, representing
80% of the target respondents. Descriptive statistics like mean and standard deviation were
computed using Statistical Analysis Software.
In measuring the relationship of variables, the Spearman's Correlation was used by

comparing the coefficient of rank-order correlation (rs) to measure the strength of relationship. To
determine the significance of correlation, the significance probability was computed and compared
with one percent level of significance. The significance of the differences in the three groups of
respondents was determined using the Kruskal-Wallis H Test and was tested at one percent level of
significance.
Process in the Evolution of SMEs
The five processes identified to have been contributory the institutionalization of SMEs are:
(1) enactment of enabling laws;) provision of government policies, programs, and projects; (3)
establishment of government agencies, (4) participation of private sector; and (5)
regional/international integration and cooperation. The study showed that all the processes are
recognized by the respondents as contributory to the evolution of SMEs as shown in the weighted
mean of 3.7l, interpreted as agree." The highest grand mean was seen in the output users group
(5.96), followed by the input providers group (3.91). The management group had the lowest mean
of 3.87.
35
Of the five processes, participation of the private sector had the highest overall mean score
of 4.06 interpreted as "agree." The output users group gave the highest rating of 4.10, while the
management group gave the lowest at 4.0. Of that 179 respondents, majority agreed (67% agreed
and 21% strongly agreed) that participation of the private sector is indeed a significant process for
the SMEs to develop and grow. Many firms interviewed were active in their respective sectoral
associations and have cited the benefits of membership. Private organizations are believed to have
served as intermediary between the government and the business community. More importantly,
there are some aspects of business operations that rely on associations for facilitation and support
like the bulk buying of certain raw materials and the sharing of resources.
The provision of government policies, programs, and projects ranked second with 4.03
overall mean score interpreted as "agree," the highest (4.11) being given by the output users and
the lowest (3.95) by the management group. The respondents recognized the fact that policies
operationalize the enabling laws. These also provide directions and focus to government efforts and
activities. In the same vein, programs and projects enable the government to reach its constituents.
This was confirmed by the agreement (64%) and strong agreement (23%) of the respondents on the
contributions of government to the growth of SMEs.
The enactment of enabling laws for SMEs to develop and grow which was rated at 3.87
overall mean score and interpreted as "agree", ranked third in terms of significance. Of the 179
respondents, 61 percent agree and 17 percent strongly agreed with this process. The input
providers rated this highest (3.93) while the output users rated it the lowest (3.80). It is generally
accepted that laws are necessary to give order in the relationship of various actors of society. They
define authority and responsibility of each party involved in SME development. On the part of the
government, laws define its structure, legitimize its resources, and provide avenue to exercise upon
people its regulatory functions.
The establishment of government agencies is believed to have contributed to the evolution of SMEs
with a 3.86 mean score (agree) and with 64 percent of the respondents agreeing and 16 percent
strongly agreeing. Apparently, government agencies serve as a common venue for the business
sector and the bureaucracy to communicate their respective concerns. Nonetheless, some
respondents fear the duplication of functions if so many agencies are created to perform related
tasks. The lack of coordination among government offices was also found to be real.
The regional/ international integration and cooperation was rated with a 3.72 mean score
(agree). The study found a mixed reaction concerning this process. Thus, there is a relatively
noticeable large percentage of undecided respondents (24%). The fear among respondents is in the
intense competitive pressure that free flow of goods could bring to the smaller enterprises that are
not yet ready. In totality, 58 percent of the respondents agreed while 12 percent strongly agreed
that the processes of integration and cooperation are nevertheless important for the SME sector.
The study revealed the importance of private sector participation in the continuous
development of the SME sector. It implies that SME development is not the sole responsibility of
either the government or the businessmen themselves. On the contrary, it is a shared responsibility.
Thus, it is imperative to insure the process of participation in the development of SMEs.
It is also important to study the dynamics inside the SME sector in terms of composition,
power relations, process of choosing representatives, utilization of resources, and exchange
processes. In like manner, it is timely to examine the government programs for the SME sector in
36
order to align them with the real needs of the sector. It is also important to find out who benefits
from the process of participation and how empowerment is achieved.
Internal Organizational Variables
The assessment of the internal organizational variables shows that SMEs They are "good"
in terms of leadership (3.44), production policies (3.32), technology (3.30), human resources (3.43),
and financial resources (3.40). However, they are "very good" (3.52) in have "good" (3.40)
organizational capacities. terms of market access.
Leadership. An assessment of the organizational leadership reveals that leaders of SMEs

have the capacity necessary to run the affairs, of the business, hence, the respondents rated the
SME leadership "good" in all areas and an overall score of 3.44. This also indicates the general belief
of the respondents that the leadership style dominant among the management is one between
autocratic and democratic leadership but there is a leaning toward autocracy.
Production. The mean score of 3.32 signifies that production policies are believed to be
generally "good." It implies that the SMEs production facilities that are located in strategic areas.
Production inputs are bought under well-established systems of procurement and follow quality
control requirements. The production processes are appropriate to produce the finished goods at
prices acceptable to the market and at the same time could satisfactory returns to the owners. The
respondents rated all measures production policies as "good." This implies that there are adequate
and timely production polices that are regarded by the respondents as clear, consistent and neutral.
However, the quality of these policies is not sufficient enough to considered "very good" or
"excellent.”
Marketing. There is an identified market for the products of SMEs. In fact, the market is
assured because the products in the form of food-related items are in demand. The ready market
is further explained by the fact that meat is a prime need of human beings, hence, the demand is
endless. The mean score of 5.52 (very good) revealed the general belief that the market is accessible
to the SMEs. This can be attributed to the fact that the management has adequate knowledge about
the general business environment and the market being served. There are also initiatives geared
toward product development. Since the market is identified and specific for most SMEs, promotion
is not mandatory.
Technology. Of the six internal organizational variables considered in the study, the aspect
of technology had the lowest mean score of 3.30. But it is nevertheless classified as "good." This
implies that the desire of the management to adopt modern technology still remains at a latent
stage. One reason for this is the cost involved in the adoption of new technologies.
Human resources. The aspect of human resource is perceived to be generally "good" with
a 3.43 mean score since there is an adequate supply of manpower that is both skilled and trainable.
The labor force is appropriately placed in a properly structured organizational set-up. The effort to
train manpower is also clear and evident.
Financial resources. The financial aspect poses some problems particularly in line with
paying the currently maturing obligations. This problem has its roots in the difficulty of collecting
the accounts from customers. Generally, the SMEs have the confidence of both the shareholders
and the owners. Thus, financial resources are assessed "good" with a mean score of 3.40. Financial
plans are prepared by most SMEs and effectively functional control mechanisms are in place.
37
However, the absence of internal audit in some farms needs immediate attention of the
management.
The findings show that the internal organizational variables are interrelated components or
the individual SVES. They are set in structure where each component has a number of functions.
The management of these variables agrees with the structural-functional perspective in sociology
which drew its original inspiration from Herbert Spencer and Emile Durkheim and later refined by
Talcott Parsons and Robert Merton. The agreement lies along the fact that the various components
of the organization have to function in order to maintain the stability of the whole organization.
The role of each component should also be clear and understandable to the actors so that they
could have a sense of identity and thus perform the job better. Clearly, this is a challenge to the
management of the SMEs.
An organization is also a system whose various parts have to work in harmony. As espoused
by the general systems theory that the elements of a system should stand in unison, it is important
that both the individual enterprise and the SMEs as a sector manage the different elements
comprising them so that they would work in harmony.
External Organizational Variables
The external organizational variables have an overall mean score of 3.39 interpreted as
"good." Of the four types of linkages, the SMEs scored highest in functional linkage with an overall
mean score 3.36. This indicates that the SMEs relationship is strongest with those who supply inputs
to the business, those who use the outputs, and competitors. This is understandable because
business firms have to prioritize relationship with those whom they have direct interest and
business transactions.
Relationship with national government agencies performing developmental and regulatory

functions, with local governments, and with owners or corporate board of directors (also called
enabling linkage) was rated "good" with a 347 mean score. Normative linkage with academe, trade
and industry organizations, socio-civic organizations, professional organizations, religious
organizations, and other nongovernment organizations got an overall mean score of 3.31,
interpreted as "good." The relationship with opinion groups and the public at large or diffuse linkage
was assessed "good" (3.11 mean score).
The study revealed the need for the SMEs to develop linkages with entities outside the
organization. This is clearly in agreement with the interactionist perspective in sociology with focus
on how the people act together, respond to, and influence one another. It also agrees with the
exchange theory, which focuses on how people influence one another by exchanging various forms
of rewards and punishments for approved or disapproved behavior. Thus, maintaining linkage with
external parties could have certain rewards to the organization. And the reciprocities could enhance
the organizational performance of the SMEs.
Indications of Institutionality
The state of institutionality of the SMEs was rated “very good” (3.54), an indication that
SMEs have indeed attained a higher level in the institutionalization hierarchy. Six of the eight
indicators were rated "very good," namely: technical competence (3.65), normative commitment
(3.61), environmental image (5.67), spread effects of activities (3.56), autonomy (3.52), and public
acceptance/approval 3.57). The two indicators rated as "good" were innovative thrust (5.28) and
influence (3.48).
38
Technical competence. The assessment of technical competence with a mean score of 3.65
shows the general agreement that SMEs have the necessary capacity to produce acceptable quality
of products at reasonable price. They are able to meet the expectation of buyers and can meet
demands even in the future.
Normative commitment. The aspect of normative commitment is rated "very good" with a
3.61 mean score. This shows the general belief that SMEs are sincere in delivering their goods to
the parties they serve. They are true to their mission and are in fact interested to grow and prosper
as efficient and effective organizations.
Innovative thrust. This aspect was rated "good" with 3.28 mean score, an indication that
there is much to be done to introduce the values of creativity and innovation among SMEs.
Environmental image. The respondents rated this aspect "very good" with a 3.67 mean
score. This shows that the SMEs have created an image that is acceptable to and respected by the
people in the immediate environment.
Spread effects of activities. The spread effects of SME activities have mean score of 3.56
(very good). The respondents felt the effects of the activities of the SMEs in terms of employment
provided, revenue contributions to government, physical development of the community,
ecological balance, and social equity. SMEs are also capable of harnessing economic activities.
Autonomy. The SMEs' autonomy speaks of their reliance on own resources and power (3.52
mean score). It is believed that SMEs are autonomous enough in defining their own goals and
directions; in promulgating policies, rules, and procedures; in pursuing their own affairs and
operations; and in providing solutions to day-to-day problems. Except for the autonomy in financial
resources, all areas of autonomy are rated "very good."
Influence. Another measure of institutionality that is rated "good" with a 3.48 mean score
is influence. It appears that SMEs have yet to influence the practice of people and inspire them to
engage in enterprising activities. While SMEs could enhance competitive consciousness, they can
also fairly enhance community or national identity and pride and transfer norms and values to larger
society. the
Public acceptance. The aspect or public acceptance is perceived to be "very good" with a
3.57 mean score. This indicates that there is a high level of public awareness and satisfaction to the
firms' products and services. There is also a high level of public preference for the firms' products
and services as shown in the customers' patronage. Thus, the respondents are amenable to
recommend the products and services of the SMEs.
The study revealed that SMEs have certain clients whose interest they should serve. These
clients determine the length of time the SMEs would survive. The clients have demand in terms of
product and service quality, price, availability, and usefulness. The SMEs, therefore, have to look
beyond organizational concerns and attend to societal affairs to be able to sustain their state of
institutionality.
Problems of SMEs
Problems commonly encountered by SME's depend on the type of business activity in which
they are engaged. In other words, a subsector like feed milling encounters problems whose nature
39
is different from those of the piggery and poultry subsectors. Understandably, the operational
intricacies of a business and the nature of the products contribute to the distinctiveness of the
problems. It was observed, however, that there are commonalities in the problems encountered
within a subsector.
Reasons for Survival of SMEs
The reasons identified to have been instrumental in the survival of SMEs vary from one
subsector to another. However, there are commonalities among the reasons. Commitment to
produce quality products, sound management policies and practices, and marketing strategies are
the most common reasons why SMEs are able to survive through the years.
Relationship of Variables
Correlation analysis. Using the Spearman Rank-Order Correlation, the study found out the
following:
a. All internal organizational variables have positive correlation with the linkage variables, the
relationship ranging from weak (with coefficient rho of less than .5) to strong (with
coefficient rho of .5 and above). The factors with strong positive correlation are financial
resources and enabling linkage (.52) and functional linkage (.60); production policies with
functional linkage (.56); marker access with functional linkage (.51); and human resource
with functional linkage (52).
b. All internal organizational variables have positive correlation with all indicators of
institutionality. The correlation ranges from weak to strong. The factors with strong positive
correlation are the following: leadership with technical competence (.59), normative
commitment (.60), innovative thrust (.55), and public acceptance (.51); market access with
technical competence (.68), normative commitment (.64), innovative thrust (.59),
environmental image (.57), influence (.53), and public acceptance (.60); technology with
technical competence (.56), normative commitment (.55), innovative thrust (.54), influence
(.50), and public acceptance (.51), Production policies, human resources, and financial
resources have strong positive correlation with all the indicators of institutionality.
c. All linkage variables have positive correlation with indicators of institutionality and the
relationship ranges from weak to strong. Those with strong positive correlations are
enabling linkage with technical competence (.68), normative commitment (.56),
environmental image (.52), spread effects (.60), influence (.53), and public acceptance (.52);
normative linkage with technical competence (.56), normative commitment (.55),
innovative thrust (.50), spread effects (.54), influence (.56), public acceptance (.53); and
diffuse linkage with influence (.51). Functional linkage has strong positive correlation with
all the indicators of institutionality.
The study shows that the SME sector is indeed an institution. The institutionality of the
sector is a function of the way the individual organizations manage both the internal and external
organizational variables.
Since the organizational variables are within the influence of the management of the
enterprises, it is imperative that they understand fully well the dynamics within the organization
and how they interact with entities outside their organizational boundaries. How they manage the
different variables will determine how far they will remain as an institution. In fact, the current state
40
of institutionality of the SME sector is a reflection of how the individual enterprises have managed
the organizational variables in the immediate past.
Test of hypothesis. The three null hypotheses were tested at one percent significance level.
The significance probabilities of .001 in all indicators imply the need to reject three null hypotheses.
In effect, the research confirms that there are significant relationships between (a) internal
organizational variables and linkage variables, (b) internal organizational variables and indicators of
institutionality and (c) linkage variables and indicators of institutionality.
Analysis of variance. The test of significance of the differences in the three groups of
respondents was made using the Kruskal-Wallis H. Test. Of the 18 variables, 12 were found to have
no significant differences at one percent significance level, namely: leadership (.85), production
policies (.10), financial resource (.03), enabling linkage (.44), functional linkage (.23), normative
linkage (.81), diffuse linkage (.85), technical competence (.05), normative commitment (.43), spread
effects of activities (.08), autonomy (.52), and influence (.38). Thus, the three groups of respondents
- management, input providers, and output users - have similar perceptions regarding the 12
variables.
The six variables whose tests revealed significant differences were market access (.04),
technology (.05), human resources (.0002), innovative thrust (.01), environmental image (.001), and
public acceptance (.01). This means that the three groups of respondents have different
perceptions regarding the six variables.
Conclusions
Based on the findings of the study, the following conclusions were drawn:
1. The task of developing the SME sector requires appropriate government intervention and
private sector participation. The study reveals that:
a. Laws governing SMEs are necessary to enable the individual enterprises and the sector
to grow and develop.
b. Appropriate and responsive policies, programs, and projects of the government are
important to operationalize the laws governing the SMEs.
c. Government agencies are needed to support the promotion and development of SMEs.
d. The participation of the private sector through associations helps significantly in the
successful coordination between the government and the business community.
e. Regional/international integration and cooperation are important processes that could
provide benefits and opportunities to the SME sector.
2. The SMEs generally have "good" organizational capabilities. The study reveals that:
a. SME are "good" in internal organizational aspects. Specifically, they have "very good"
access to market and "good" organizational capabilities in terms of leadership,
production, technology, human resources, and financial resources. This indicates that
one of the strengths of SMEs is their access to market. In the case of agri-based
enterprises, it is the nature of their products that sustains their continuous demand. In
other words, because their products meet a basic necessity in life, there has always
been a ready market for them. The assessment also indicates that the individual
enterprises have the necessary capabilities to manage the different aspects of their
business. However, they have to harness these capabilities, particularly those that were
assessed good to improve further their performance.
41
b. SMEs are "good" in maintaining relationships with parties external to the organization.
Specifically, they have "very good" functional linkage 1owever, they are only "good" in
keeping normative, enabling, and diffuse linkages - aspects where further
improvements can be made 1hese are clear indications that the SMEs maintain linkages
primarily with those who have direct business transactions with them such as input
providers and output users. Thus, the individual enterprises have to expand their
exchange of transactions with other entities outside or the organizations to include
government agencies providing them the authority to operate and regulate their
business operations as well; and collaborators like educational institutions, socio-civic
organizations, and other non-government organization. They also have to link with the
general public whose interests are nonetheless important to their business operations.
3. The issue of what makes an institution can be addressed by assessing the extent of efforts
an organization has invested in a multiple of attributes that eventually characterize its own
state of institutionality. This study reveals that the SME sector, after an assessment of the
individual enterprises has been made, has a "very good" state of institutionality.
Specifically, they have "very good" technical competence, normative commitment,
environmental image, spread effects of activities, autonomy, and public acceptance
However, they only have "good" level of innovative thrust and influence, thus, requiring
further attention and proper action.
4. The organizational variables influence the state of institutionality of the SMEs. Therefore,
enhancement of these variables is necessary for the SMEs to attain and/or improve the
state of institutionality. Thus, the individual enterprise has to manage each variable to
maximize its usefulness and contribute to the overall organizational performance. It is
through managing these variables that the enterprise wll be able to attain and/or improve
its state of institutionality.
5. The management group, input providers, and output users have similar perceptions about
the following aspects or the SMES: leadership, production policies, enabling linkage,
functional linkage, normative linkage, diffuse linkage, technical competence, normative
commitment, spread effects of activities, autonomy, and influence. However, they have
differing perceptions with regard to market access, technology, human resources, financial
resources, innovative thrust, environmental image, and public acceptance.
6. There are clear indications that the characteristics of small enterprises are not far different,
in fact, indistinguishable with those of the medium enterprises The distinctions are only in
terms of numerical attributes like asset size, number of employees, and production
capacity. The structures, processes, and problems have more commonalities than
differences.
Implications
On Government Policy
Government support to SMEs. The government support currently in place for SMEs can be
characterized as follows:
a. They are too diffused over so many agencies of government. A businessman in need of help
goes from one office to another to find the specific support provided by the different
government offices. While specialization of functions is important, the fact that
42
businessmen have to roam around several distant service providers in government is both
tedious and time consuming. In effect, businessmen work by themselves and disregard the
government’s offer for assistance.
The diffusion is clearly true in the case of two national agencies catering to SME
development: the Department of Agriculture and the Department of Trade and Industry.
Within each department are specialized agencies located in distant places. Similarly, the
segregation of services for the agricultural and industrial enterprises is also problematic
because it requires two government agencies to attend to the same SME sector.
b. The government support has no level or stage of intervention. In other words, the
assistance is provided in basket form for SMEs in whatever stage of organizational life. The
assistance is not geared toward SMEs in any particular organizational stage such as
enterprise formation, enterprise expansion, and enterprise transformation.
c. Along areas of financing, the Philippine government has made it easier for SMEs to borrow
money from banks by suspending or relaxing stringent requirements imposed by financial
institutions in the processing of loan applications. There are also guarantee programs
specifically for SMEs. Yet, borrowers still find the document requirements stringent and the
collateral requirements strict. The preference of banks for big loans is also evident since
banks believe that the cost of processing small loans is the same as the cost of processing
multi-million peso or even billion-pes borrowing. Banks still have to require collaterals
before lending to small and medium businesses because there are risks involved. The
reason banks are not inclined to lend without collateral is that they are in effect taking the
shareholders' risks if they provide financing o without assets to rely on in case the project
does not work out. As a result, SMEs still find money placements of individual lenders easier
to avail of especially in meeting the most urgent financial needs.
Thus, while it appears that the government is doing so much to assist the SMEs in the
sourcing of funds through various financing packages, credit liberalization, and
simplification of requirements, it seems that the SMEs are either reluctant or unable to
borrow from the institutional sources credit. Indeed, the gap between the availability of
funds and the inability of the SMEs to borrow poses a problem.
SME development in local governments. The Local Government Code of 1991 lays down the legal
framework for the local government's active involvement and participation in economic promotion
through an active partnership between the local government and the private sector. The Local
Development Council is given an active role in the planning of programs and projects at the local
government level. However, the code did not provide the necessary organizational unit required
for a more responsive and dynamic development in the local government. It did not also categorize
the enterprise according to its size, which, in fact, requires varying types of intervention. As a result,
the development and promotion of SMEs in local government are plainly abstract. There are no
definite and concrete programs that could adequately enhance the growth of the sector.
On Private Sector
Private sector participation. The importance of partnership between the government and the
private sector in SME promotion and development cannot be overemphasized. The respondents of
the study confirmed the perceived importance of both the establishment of government agencies
and the participation of private sector as processes in the evolution of SMEs. However, it appears
that the individual SMEs are short of making functional linkages with government agencies as
43
revealed in the assessment of the linkages variables. Therefore, the SME sector has to address some
concerns that will strengthen their relationship in the form of participation with government
agencies.
Enterprise management. It is generally observed that the individual enterprises have the necessary
capability to run the daily affairs of the business. Indeed, they have the competence in various areas
of managing the firm: production, marketing, human resource management, financial
management, and the like. They also have the necessary organizational strengths that make them
an institution: innovative thrust, normative commitments, influence, autonomy, and the like.
However, SMEs have to face the bigger challenge of globalization. They have to meet the demand
for advancement of enterprises and look at alternative models of business management.
Furthermore, they have to be concerned with environmental protection and ecological balance. All
of these should be addressed in their pursuit of profit and without neglect of their social
responsibility.
On Future Researches/Studies
Levels of socio-economic analysis. In studying the socio-economic development of a nation,

researchers commonly use four levels of analysis, namely: individual level, organizational level,
societal level, and world system. It is important to consider the sectoral level as the point between
the organizational and societal levels. A sectoral level perspective, as in the case of the SME sector,
opens up conditions and situations that are peculiar in the sector. It limits the boundaries of analysis
to the particularly affected sector, which could uncover realities from where policies and programs
could focus.
On Community Development
SME and community development. Most people depend on SMEs for a living on the part of the
entrepreneurs, SMEs are the immediate business activity where they can productively put their
resources to create value and generate wealth. In | return, they are able to provide employment
opportunities to people, thus maximizing the human potential in a community. They put to
productive use the produce of farmers and other entities, which also become beneficiaries of the
capitalist business activities. In effect, SMEs are able to alleviate the personal lives of the people --
helping families send their children to school, provide the necessary medical treatment, and build
homes and families.
SME also supply the society with finished goods for use or consumption of the people. The revenues
that they generate from sales could proportionately share with the government in the form of taxes.
In the long run, the taxes are spent for a lot of public purposes. Clearly, SMEs play a crucial role in
creating opportunities that make the attainment of equitable and sustainable growth possible.
Recommendations
1. The national government must review its current strategy on SMEs to include the following:
a. Consolidation of agencies with related functions in order to avoid too much diffusion
of support services to the business community. The consolidation should also include
placing all the available services to facilitate their efficient delivery in one setting. The
same process should be done at the regional level.
44
b. Development of schemes that will categorize the government support in accordance

with the level of operations or organizational life of the business, specifically at the
enterprise formation, enterprise expansion, and enterprise transformation levels.
c. Study of the real causes of the gap between fund availability in different packages and
loan availment among SMEs.
d. Proposal to include in the amendments to the Local Government Code, a provision
specifically creating a unit in the local governments addresses the needs of the SME
sector.
2. The SME Should work both individually and collectively as a sector along the following areas
of concerns:
a. Helping the government redefine its developmental and regulatory policies and
agencies. It is to their best interest to keep the government informed, more focused,
and strategically aligned
b. Getting ready with globalization by enriching core competences, adoption of modern
technology, and increasing quality consciousness with the organizations.
c. Developing a passion to learn, train people, and retain them to get exposed to current
technologies.
d. Advancement to enterprises that will undertake value-adding process to agricultural
products.
e. Studying the possibility for business diversification, contract growing subcontracting,
packaging business, scientific/systematic feasibility studies. and the like through
f. Protection of the environment and keeping ecological balance through proper waste
disposal, responsible soil utilization, installation of anti- pollution devices, and the like.
g. Sacrificing the traditional business interest for social responsibility. Workers need to
earn in much the same way as the business does. Their lives need to improve faster
than the profit margins of business.
3. Future researches can have the following directions/agenda:

a. Institutionalization of micro enterprise as a sector of society particularly those located
in the countryside and in agrarian reform communities.
b. Institutionalization of other sub-sectors of SMEs.
c. Studying the variance in responses among the three sub-sectors in this study, namely:
feed milling, swine production, and poultry raising.
d. Situating the SMEs as a sector in poverty alleviation initiatives.
e. Studying the dynamics of the process of participation in SMEs including the exchange,
sharing, and utilization of resources.
f. Studying the dynamics of empowerment of the SME sector.
4. Local government should include in their priorities the needed support to SMEs.
Specifically, they should localize the provisions of the national laws by:
a. Establishing a unit in the local governments that will cater to the needs of the SME
sector.
b. Passing an ordinance that will provide funding support to the SME development in the
locality on a yearly basis.
c. Developing a comprehensive program putting in place the support the SME sector
requires from the local government. The program should encompass the various
aspects of operations of the SMEs such as production, marketing, human resource
development, technolo8Y, and financial resources.
d. Engaging in developmental activities like research, training, and extension for SMEs and
providing them with the necessary facilities for development.
45
5. Provincial governments in the Philippines should prepare institutional development

program specifically for the SME sector that will consider, among other, the following
agenda:
a. Establishment of adequate and up-to-date centralized data bank to include businesses
in both agricultural and industrial sectors.
b. Encouragement of SMEs to organize themselves into business networks and
associations. Efforts should also be exerted to strengthen existing organizations.
c. Extension of fiscal and other incentives particularly to the newly established firms.
d. Design of mechanism that will encourage and facilitate partnership between large and
small enterprise not only in terms of market, but also in production processes and
technology sharing.
e. Establishment of mechanism that will monitor supply-and-demand of products of SMEs
and maintain possible supply-demand equilibrium and systems that will address the
trap of oversupply situations.
A sample "Five-Year Institutional Development Program for Agri-Based SMEs" designed particularly
for a provincial government is presented as part of this study.
Source: Mendoza, Rufo R. 2001. Institutionalization of Agri-Based Small and Enterprises in Batangas
Province, Philippines. Unpublished doctoral dissertation. University of the Philippines Los Baños.
College, Laguna.
46
Lessons from Experiences
Financial Management Practices and Organizational Performance of a Cooperative
The study provides certain lessons-also called variables that can be adopted by
other newly formed or growing cooperatives.
1. Pro-active efforts to consider financial management.

Cooperatives should give importance to financial management as early organizational
formative stage. Since any cooperative entails certain right from its formative period,
important tasks which should not be neglected are the proper accounting, custody, and use
of these funds. Management should not wait for the time when the treasurer can no longer
determine balances of funds or the bookkeeper complains about unreconciled figures the
books of accounts. A pro-active effort should be exerted as early as the pre-operating stage
by installing an appropriate financial system, encouraging examination, review, or audit of
financial statements; and seeking advice from specialists in financial management.
2. Use of credit. Cooperatives should be cautious on the use of credit.

Since most cooperatives start with minimal share capital, what most likely happens Is that
they borrow funds or obtain goods and services on credit. As a debtor (borrower), a
cooperative should know its limit - its paying ability, its resources, and the disposition of
borrowed funds. Many organizations fall prey to costly borrowing because of the belief that
any fund available or any willing Creditor could be beneficial to them. If borrowing is not
properly or scientifically accounted for, there is the danger of being tied up in unproductive
debts. And in that situation, the tendency is to obtain new debt to pay an old one until such
time that the organization is tied up in multiple debts, and thus becomes insolvent.
The same caution should similarly be exercised by cooperatives engaged in lending

operations or those extending credit on sale of goods and services. It is an observed reality
that granting credit is an easier task than collection because in such situation the member-
debtors tend to approach willingly the cooperative. But in paying back the money, they
tend to shy away from the cooperative-creditor. There are only few cases where payments
are made voluntarily. Given this reality, any cooperative should use certain tools to reduce
the credit risks. Limiting credit to an amount equivalent to the member’s share capital is
one way to assure repayment. The use of credit terms, credit investigation, collateral and
co-maker requirements, and complete documentation could definitely help a lot.
3. Development plans. The management of any cooperative should focus its

direction to the attainment of its mission. One way to do this is to prepare medium- or long-
term development plans. A coordinated effort in the planning of projects and activities
could guide management in setting priorities and selecting appropriate strategies. Plans,
however, should also entail assessment or evaluation to find out areas that need
improvements or corrective measures.
Another critical point in the use of development plans is the need to periodically
redefine the organization's mission. This will give the cooperative comparative advantage
and will make it distinct from the rest of nongovernment organizations.
4. Thrust of diversification. Multipurpose cooperatives have certain

advantages over other specific kinds of cooperative. Attaining growth in one particular line
47
of business should provide cooperatives the challenge to venture into related or allied
fields. For indeed, members have multiple needs to be met and these entail diversification
on the part of the cooperative. Therefore, the challenge of diversification is one concern
that can be immediately considered.
5. Divorce from politics. Cooperatives need capable leaders who can direct
their operations. In some cases, however, leaders tend to play partisan politics even in
running the cooperative. While it is true that politics could help especially in sourcing
financial assistance, cooperative leadership should be divorced from partisan politics. Once
political interest comes into the scene, there is a possibility that certain efforts will be
geared toward gaining political influence at the expense of the cooperative.
6. Linkages. A cooperative should be concerned not only with the internal

affairs of building the organization but also with its interdependencies with other relevant
parts of the society. The kind of linkage referred to in the previous discussions was more of
functional linkage. As clearly illustrated, this is the relationship among the farmers as
producers of agricultural products, LIMCOMA as feed manufacturer, and the poultry and
livestock growers as users of feeds.
In the systems framework of Reyes and Talatala (1994), this ability of the
organization to produce outputs that are needed as inputs by other systems is called
relevance. Thus, to maintain relevance, an organization belonging to a system should be
sensitive and alert to environmental signals to adjust or continue to deliver quality and
specific outputs needed by its environments. An organization to be institutionalized has to
engage in a network of relationships and interact with other organizations. It has to relate
with entities that control the allocation and access to essential resources and protect the
organization against attack (enabling linkage). LIMCOMA keeps this linkage with the
Cooperative Development Authority, Department of Agriculture, Land Bank of the
Philippines, Development Bank of the Philippines, and other government units.
Relationship with other organizations which share overlapping interest (normative

linkage) should also be built as what LIMCOMA did with the Cooperative Union of the
Philippines, the Federation of Cooperatives of Batangas City, and the Ibaan Irrigators
Federation. There is also a need to link with the public at large for they can influence the
standing of an institution m a locality (diffuse linkage).
7. The business aspect of a cooperative. The general concept that a

cooperative is organized to achieve a common social or economic end implies that it has to
engage in certain social or economic activities as a means to attain that end. LIMCOMA
ventured into the business of feed milling and, after meeting satisfactorily the needs of
members in that aspect of business, diversified into other areas. It is an indication that
business activities can really happen in a cooperative setting. In fact, it can be one best way
to realize a cooperative’s goal of sharing returns with its members and contributing
significantly to the society.
The cooperative form of organization can be a limiting factor in the conduct of

business activities since the main objective of a cooperative is to provide goods and services
to its members and not to generate profit. However, it can also be an edge because of the
many positive features of the cooperative principles such as the democratic control in
administering the organizational affairs, the open and voluntary membership, the provision
for the education of members and employees, and the need for an active cooperation with
48
other cooperatives. These can be capitalized into meaningful activities that will transform
the potentials of cooperative form into meaningful results. LIMCOMA did the same
transformation.
Implications on development. The cooperative movement in the Philippines can

be likened to a force that tends to hasten progress and development. It has become an
effective tool to attain unity, fight poverty, and enhance sustainable development. As a
mass-based organization, it can truly mobilize the human potential for the national interest
and the common good.
But before any cooperative can do all of these, it must have the capability to stand
on its own feet and to manage efficiently its own affairs. In short, it must have technical
feasibility, administrative capability, and financial soundness-conditions that call for
capability building among cooperatives.
The study shows that financial soundness of a cooperative does not happen by
mere intentions of management. Neither does it come as a given or inherited process in
forming an organization. Rather, it comes as a result of concerted efforts that require
awareness and strong will on the part of management.
If only all cooperatives could inject in their plans and programs the use of financial
management tools on the very first day of their organizational life, then problems on fiscal
accountability, low repayment performance, insolvency, dissolution, and bankruptcy could
be minimized, if not completely avoided. For indeed, financial management practices are
preventive measures that could provide solutions even before problems could crop up.
A cooperative that is financially sound is capable of performing its role as a

springboard to development. It promotes not only savings consciousness and
creditworthiness but also, and most importantly, the attainment of a better quality of life
which is the main concern of development and development management.
Source: Mendoza, Rufo R. 1996. Financial Management Practices and Organizational Performance:
The LIMCOMA Multi-Purpose Cooperative Experience. Unpublished Masteral Field Study/Thesis.
University of the Philippines Los Baños. College, Laguna.
49

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Chapter V Data Collection and Utilization

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ACC 80 – ACCOUNTING RESEARCH METHODS

5.1 Data Collection

5.2 Data Processing

5.1 Data Collection

Data Collection Chapter 4 – Research Design and Methods

• Data Gathering Methods 1. Description of the Research

Figure 5-1. Data Collection and Utilization Processes

Category Primary Data Secondary Data

Data Gathering Methods and Instruments

Survey is a type of research design. It is also a method of data-gathering. As a method, survey

A questionnaire is a means of eliciting the feelings, beliefs, experiences, perceptions, or

A good questionnaire has the following characteristics:

Audit Quality Attributes 1 2 3 4 Comments

Interview is a face-to-face interpersonal attempt to obtain reliable and valid information in

1. They are rigidly standardized and formal.

• Error in asking questions. This happens when an inappropriate question is asked.

Before conducting an observation, it is necessary to have an observation guide. While

To operationalize observation as a technique, the researcher identifies the attributes of the

Observing phenomenon is inherent in the work of a researcher as he/she is bound to gather

Sampling can be probabilistic and non-probabilistic. Probability sampling is based on the

Figure 5-2. Formula for Sample Size Computation

5.2 Data Processing

Table 5-3. Sampling Plan for the Three Clusters of Respondents

SAMPLE COMPUTATION FOR PROVINCES, CITIES AND MUNICIPALITIES

PROVINCE CITY MUNICIPALITY TOTAL

Tables can be categorized as follows:

Interpretation involves making inferences pertinent to the research relations investigated

Central tendency provides information on the grouping of the number in a distribution by

Data Analysis and Interpretation

Independent Variable Dependent Variable

Illustrative Example 3 is a sample of data presentation for the assessment of financial

5.3 Research Application

Illustrate Example 4 shows the summary of findings, conclusions, and recommendations of a

Illustrative Example 1 Data Collection Write-Up

Locale of the Study

Batangas is regarded as an agricultural-industrial center that is rich in experiences in small and

TYPE OF ENTERPRSE SMALL MEDIUM LARGE TOTAL

Table 2. Number of Feed mills in Region IV

PROVINCE NO. OF FEEDMILLS PERCENT

MUNICIPALITY FEEDMILLS SWINE POULTRY TOTAL PERCENT

The stages in the selection of sample are as follows:

Stage 1 Selection of sub-sectors

Primary sampling units (PSU): SME sector in Batangas Province

Stage 2 Selection of Enterprises

Secondary Sampling Units (SSU): 3 sub-sectors of SMEs

Sampling Scheme: Simple random sampling of five enterprises per sector

Stage 3 Selection of individual respondents

Tertiary sampling units (TSU): 15 respondents

Sampling Scheme: Simple random sampling of 15 respondents per enterprise,

Table 4. Number of Target and Actual Individual Respondents

Methods of Data Collection and Instruments Used

Methods of Data Analysis

1.0 – 1.49 Strongly Disagree

Scale Value Judgement

1.0 – 1.49 Poor

Less than 0.5 - weak correlation

General Profile of the Enterprises