CHAPTER III

RESEARCH METHODOLOGY

In this chapter, we outline the research methodology employed in our

study titled "The Strategic Management and Performance Implication of Micro

Enterprises in Surallah, South Cotabato". This concentrates on the discussion of

the research methods and procedures adhered to by the researcher in order to

answer systematically the specific problems posed for investigation. Specifically,

the Research Design, Local of the Study, Respondents, Research instrument,

Data Gathering Procedure, Data Analysis and Ethical Consideration were

explained in this chapter.

Research Design

The study employed a Quantitative-descriptive research design to

investigate the strategic management practices and performance implications of

micro enterprises in Surallah, South Cotabato. Descriptive research aims to

gather information about a particular situation or phenomenon without attempting

to establish causal relationships. This design was appropriate for the study as it

allowed for a comprehensive understanding of the current state of strategic

management practices and performance of micro enterprises in the area.

As suggested by Bhattacherjee (2012). Descriptive research is a type of

research method that involves observing and describing the behavior of a

subject without influencing it in any way. This design is chosen because it allows
for a detailed and in-depth analysis of the current situation and practices of micro

enterprises in Surallah, South Cotabato.

As Kumar (2019) explains, descriptive research can involve studying one

or more variables, just as they occur naturally. In this case, the variables are the

strategic management practices and performance of the micro enterprises. The

goal is to provide a comprehensive snapshot of the current state of affairs.

This research design is particularly useful for the study because it will

allow to establish the current practices and performance levels of micro

enterprises in Surallah, South Cotabato. This information can then be used to

identify areas for improvement and to develop strategies for enhancing the

performance of these enterprises, as Saunders, Lewis, and Thornhill (2019)

suggest.

However, Creswell and Creswell (2017) caution that while this research

design provides valuable information about the current state of affairs, it does not

allow for definitive cause-and-effect conclusions. Therefore, any implications

drawn from this research should be done with caution.

 THE STRATEGIC MANAGEMENT AND PERFORMANCE IMPLICATION OF MICRO

ENTERPRISES IN SURALLAH, SOUTH COTABATO

Strategic Management Accounting Locale of The Study

Practices  Surallah, South Cotabato

 Budgeting;

 Cost Management;

 Performance Measurement;

 Strategic Planning

Financial performance Research Instruments

 Annual Revenue;  Survey questionnaire

 Likert scale
 Profit Margin;
 Respondents
 Performance Measurement;

 Return on Investment

Significant Relationship Between The Data Gathering Procedure

Strategic Management Accounting And The

Performance Implications Of The Micro

Enterprises

Source of Data

 Primary Data

 Secondary Data

Possible engagements in terms of

strategic management and performance Data Analysis

implications

TABLE 3.1 Research Design Framework

Research Locale

The research locale for this study is Surallah, South Cotabato, a

municipality located in the Philippines. Surallah is chosen as the setting of the

study due to its vibrant micro enterprise sector, which forms an integral part of

the local economy. These micro enterprises range from small retail shops and

service providers to manufacturing units, all contributing to the economic

development of the region.

The current situation of micro enterprises in Surallah is dynamic, with

businesses constantly adapting to market trends and economic conditions.

These enterprises are characterized by their strategic management practices,

which have a direct impact on their performance and sustainability. However,

there is a lack of comprehensive research focusing on the strategic management

and performance implications of these micro enterprises, which this study aims

to address.

The trend in Surallah, similar to other regions, is a growing recognition of

the role of micro enterprises in economic development. This trend further justifies

the need for this study, as understanding the strategic management practices
and performance implications of these enterprises can provide valuable insights

for business owners, and the academic community.

Respondents of the study

The respondents of this research will be the owners and managers of

micro enterprises in Surallah, South Cotabato. These individuals are chosen as

respondents because they have direct knowledge and experience of the

strategic management practices in their respective enterprises and can provide

insights into their performance implications. The respondents vary in terms of

their nature of work, lifestyle, and other profiles, reflecting the diversity of the

micro enterprise sector in Surallah.

A stratified random sampling technique will be used to select the

respondents. The micro enterprises in Surallah, South Cotabato will be divided

into different strata based on their industry or sector. From each stratum, a

random sample of enterprises will be selected, and the owner or manager of

each selected enterprise will be invited to participate in the research. This

technique is chosen because it ensures that every individual in the population

has an equal chance of being selected, thus reducing selection bias and

enhancing the generalizability of the findings (Bryman, 2016).

The total number of respondents will depend on the total number of micro

enterprises in each stratum and the overall population of micro enterprises in

Surallah, South Cotabato. However, the aim is to have a sample size that is

representative of the population to ensure the validity and reliability of the

research findings.
 Before administering the questionnaire, informed consent will be obtained

from each respondent. They will be informed about the purpose of the research,

how their data will be used, and their right to withdraw from the research at any

time. Confidentiality and anonymity will be ensured throughout the research

process to protect the privacy of the respondents.

The first part of the research question is Level of Strategic Management

Accounting Practices This question aims to understand how well micro-

enterprises in Surallah are adopting different strategic management accounting

practices. It focuses on four specific areas: budgeting, cost management,

performance measurement, and strategic planning. You want to know, for each

of these areas, how frequently micro-enterprises use specific techniques or tools

related to strategic management accounting.

Level of Financial Performance

This question shifts the focus to the financial outcomes of the micro-

enterprises. You want to know how well they are performing financially,
considering four key indicators: annual revenue, profit margin, performance

measurement (which might use different metrics than the first question), and

return on investment.

Relationship between Strategic Management Accounting and Performance

This question builds on the first two by asking whether there's a

connection between how well micro-enterprises implement strategic

management accounting practices and how well they perform financially. In other

words, you want to see if there's a pattern where micro-enterprises with better

strategic management accounting practices also tend to have better financial

outcomes.

Effective Strategic Management and Performance Engagements

Finally, this last question takes a practical approach. Based on the

findings from the previous questions, we want to identify specific strategic

management accounting practices or tools that are most effective in improving

the financial performance of micro-enterprises. This will help us develop

recommendations or interventions that can directly benefit the businesses.

Research Instruments

This study employed a survey questionnaire as the primary research

instrument to gather data on the strategic management practices and

performance implications of micro enterprises in Surallah, South Cotabato. The

questionnaire consisted of closed-ended questions utilizing a Likert scale,

allowing respondents to indicate their level of agreement or disagreement with

various statements related to strategic management factors and their perceived

impact on performance. This format facilitated efficient data collection and

quantitative analysis. The target respondents were owners and managers of

micro enterprises operating in Surallah, ensuring that the data collected reflected

the perspectives of key decision-makers within these businesses.

The research instrument would be utilized within a select group of micro

enterprises located in Surallah, South Cotabato. The instrument was carefully

designed to ensure it would accurately measure the constructs of interest in the

study.

The reliability of the instrument was evaluated using a statistical measure

known as Cronbach’s alpha coefficient. This coefficient provides a measure of

internal consistency, or how closely related a set of items are as a group. It is

considered to be a measure of scale reliability.

The successful application of the instrument in this context provides a

strong foundation for its use in future research within similar settings and

populations. It also contributes to the body of knowledge on effective research

methods within the field of micro enterprise studies.

Data gathering procedure

Data is a basic section in any examination and it will ensure in figuring the

courses of action and The consequence of the study will be revealed. Data

collection is said to be the guideline Component of the review and it will help the

researcher to guarantee about the review comes About (Greenhalgh and

Peacock 2005).

Primary data will be collected through a self-made questionnaire designed

to gather information about strategic management practices and their

performance implications. Secondary data will be collected through a review of

relevant literature, reports, and statistics related to micro enterprises in Surallah,

South Cotabato, and also the researcher solicited copies of the micro enterprises

of Surallah, South Cotabato by requesting the Office of the Municipality Mayor

through the Business Permit and Licensing Office for the sorted and classified

list of registered micro enterprises with number of employees, owner's name,

nature of ownership and business category used as reference for the Micro

Enterprises and respondents' profile.

Cronbach's Rating

Alpha

0.90 or Excellent Cronbach's Alpha

higher formula:

0.80 to 0.89 Good

0.70 to 0.79 Acceptable

 0.60 to 0.69 Questionable

0.50 to 0.59 Poor

0.49 or Unacceptabl

lower e

Table 3.2 Cronbach’s Alpha

Source: SPSS for Windows Step by Step: A Simple Guide and Reference (George & Mallery,

2003)

It undergone reliability test before distributed to the respondents. The

researcher obtained approval from the local government of Surallah, South

Cotabato. The researcher then sent letters to the owners or managers of micro

enterprises in the municipality, requesting their permission to participate in the

study. Upon receiving the necessary approvals, the researcher distributed the

questionnaires to the respondents. The researcher will be responsible for the

distribution and retrieval along with the list of respondents.

Statistical Treatment

The data collected from this questionnaire will be analyzed using

descriptive statistics and inferential statistics. Descriptive statistics, such as

frequencies, means, medians, and standard deviations, will be used to

summarize the data on the level of strategic management accounting practices

adopted by micro enterprises and their financial performance. Inferential

statistics, such as correlation analysis and regression analysis, will be used to

test the hypotheses of the study. Specifically, correlation analysis will be used to

determine the relationship between the level of strategic management

accounting practices and the financial performance of micro enterprises.

Regression analysis will be used to identify the specific strategic management

accounting practices that have the most significant impact on the financial

performance of micro enterprises.

Mean

The mean, often referred to as the average, will play a crucial role in

summarizing key aspects of our data. It will allow us to paint a concise picture of

the overall level of strategic management accounting practices adopted by

micro-enterprises, as well as their financial performance. By calculating the

mean scores for different aspects of strategic management accounting, such as

budgeting, cost management, performance measurement, and strategic

planning, we'll gain a clear understanding of the general tendencies within the

surveyed enterprises. Similarly, the mean will help us summarize the overall

financial performance by providing average values for annual revenue, profit

margin, performance measures, and return on investment.

Median

While the mean provides a valuable overview, the median serves as a

complementary measure that can offer additional insights, especially when

dealing with potential outliers or extreme values. By identifying the middle value
in a dataset when the values are arranged in order, the median can reveal

central tendencies that might be masked by outliers if we relied solely on the

mean. This can be particularly useful in our study if we encounter micro-

enterprises with exceptionally high or low scores in certain areas.

Standard Deviation

To capture the extent of variability within our data, we'll utilize the

standard deviation. This measure will reveal how much the individual values

deviate from the calculated mean. In the context of our study, it will allow us to

assess the degree of diversity among micro-enterprises regarding their adoption

of strategic management accounting practices and their financial performance.

This information can shed light on the range of approaches and outcomes

present within the surveyed population.

Correlation Analysis

To explore the potential connections between strategic management

accounting practices and financial performance, we'll employ correlation

analysis. This technique will enable us to determine whether a relationship exists

between these two variables, and if so, the strength and direction of that

relationship. It will reveal whether they tend to move in tandem (positive

correlation), in opposite directions (negative correlation), or if they operate

independently (zero correlation). This knowledge will be instrumental in

understanding the potential impact of strategic management accounting

practices on the financial success of micro-enterprises.

Regression Analysis

Going a step further, regression analysis will allow us to delve into the

specific nature of the relationship between strategic management accounting

practices and financial performance. It will empower us to model this relationship

mathematically and identify which particular practices exert the most significant

influence on financial outcomes. This deeper understanding will guide us

towards targeted recommendations for micro-enterprises, highlighting the most

effective practices to prioritize for enhanced financial performance.

Data Analysis

The data collected from the micro enterprises in Surallah, South Cotabato

will be analyzed using a variety of statistical techniques. Initially, descriptive

statistics were computed for all the variables in the study. This provided an

overview of the general trends and patterns in the data for both strategic

management accounting practices, such as budgeting, cost management,

performance measurement, strategic planning, and financial performance

indicators like annual revenue, profit margin, performance measurement, and

return on investment.

Following this, inferential statistics will be used to test the hypotheses of

the study. Techniques such as t-tests or regression analysis were employed to

understand the impact of different strategic management accounting practices

on the financial performance of the micro enterprises. In addition, correlation

analysis was conducted to understand the relationships between different

strategic management accounting practices and financial performance

indicators. This analysis helped in understanding how changes in strategic

management accounting practices are associated with changes in financial

performance.

Furthermore, regression analysis will be used to understand the predictive

power of strategic management accounting practices on financial performance.

This analysis helped in identifying which practices have the most significant

impact on performance. Finally, the results from these analyses were interpreted

in the context of the research questions. This involved discussing the statistical

significance of the findings, their practical implications for micro enterprises, and

suggestions for future strategic management practices based on the results of

the study. This comprehensive analysis provided a deep understanding of the

strategic management accounting practices and their implications on

performance.

Ethical Consideration
 The confidentiality of the respondents will be ensured. No personal

information that can identify the respondents will be collected. Informed consent

will be obtained from the respondents before administering the questionnaire.

The researcher exhibited professionalism and ethics throughout the

research process. The objectives, importance and usefulness of the study were

clearly explained to the respondents before distributing and administering the

questionnaires. The respondents’ personal information was treated as

confidential throughout the study. Participation was voluntarily, and non-

respondents were not forced in any way. Additionally, respondents were not put

under any pressure to answer questions and no embarrassing personal

questions were asked. Moreover, it was explained to them that the validity of

results would depend on the quality of their responses and they should answer

based on their experiences and their positions in the organizations. In addition,

the researcher emphasized integrity in his research. Hence, all authors whose

works were used as data sources were appropriately acknowledged.