Predictors of Sustainable Community-based Enterprises in Southern Philippines
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Published
Aug 13, 2023
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Abstract
This study aimed to investigate the determinants of sustainable community-based enterprises in terms of their social and economic benefits and operational durability. The researcher used sequential explanatory mixed methods, conducting a cross-sectional survey of 300 active members, three focus group discussions, and eleven key informant interviews with CBE leaders. Data gathered through interviews were thematically analyzed, while data gathered through the survey was analyzed using inferential statistics. The research hypotheses were tested using a Generalized Additive Model. The results suggested that Entrepreneurial Leadership, Community Participation, and Business Continuity Planning are the determinants of the economic benefits of CBEs. Entrepreneurial Leadership and Responsive Business Model explain the social benefits of CBEs, while a Responsive Business Model, Community Participation, and Entrepreneurial Leadership explain its operational durability. This study suggests that Entrepreneurial Leadership predicts all three dimensions of sustainable CBE-one that provides social and economic benefits and are operationally durable. This study is primarily of interest to the Government and Non-Government Agencies (including International NGOs) advocating, designing, funding, and implementing post-war reconstruction and poverty-reduction programs using CBEs as a strategy. Building and strengthening the entrepreneurial leadership capability of the CBE leaders may be given primary consideration, among other interventions, to ensure sustainable CBEs.
Keywords: Sustainability, Community-based Enterprises, Southern Philippines
References
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Bagheri, A. (2017). The Impact of Entrepreneurial Leadership on Innovation Work Behavior and Opportunity Recognition in High-technology SMEs. The Journal of High Technology Management Research, 28(2), 159-166. https://doi.org/10.1016/j.hitech.2017.10.003
Bailey, N., Kleinhans, R., & Lindbergh, J. (2018). Research Institute Report No. 12: An Assessment of Community-based Social Enterprises in Three European Countries. London, UK: Power to Change.
Ballesteros, M. M., & Llanto, G. M. (2017). Strengthening Social Enterprises for Inclusive Growth: Philippines. Philippine Institute for Development Studies. Retrieved from https://base.socioeco.org/docs/pidsdps1704_rev.pdf
Barth, S., Barraket, J., Luke, B., & McLaughlin, J. (2015). Cquaintance or Partner? Social Economy Organizations, Institutional Logics and Regional Development in Australia. Entrepreneurship & Regional Development: An International Journal, 27(3-4), 219-254. https://doi.org/10.1080/08985626.2015.1030458
Chandra, A., McNamara, K. E., Dargusch, P., Caspe, A. M., & Dalabajan, D. (2017). Gendered Vulnerabilities of Smallholder Farmers to Climate Change in Conflict-prone Areas: A Case Study from Mindanao, Philippines. Journal of Rural Studies, 50, 45-59. https://doi.org/10.1016/j.jrurstud.2016.12.011
Claridge, T. (2014, December 7). Why is Social Capital so Important? Institute for Social Capital. Retrieved from https://www.socialcapitalresearch.com/why-is-social-capital-so-important/
Dhewanto, W., Ratnaningtyas, S., Permatasari, A., Anggadwita, G., & Prasetio, E. A. (2020). Rural Entrepreneurship: Towards Collaborative, Participative Models for Economic Sustainability. Entrepreneurship and Sustainability Issues, 8(1), 705-724. http://doi.org/10.9770/jesi.2020.8.1(48)
Dikko, M. (2016). Establishing Construct Validity and Reliability: Pilot Testing of a Qualitative Interview for Research in Takaful (Islamic Insurance). The Qualitative Report, 21(3), 521-528. https://doi.org/10.46743/2160-3715/2016.2243
Fani, S. V., & Subriadi, A. P. (2019). Business Continuity Plan: Examining of Multi-usable Framework. Procedia Computer Science, 161, 275-282. https://doi.org/10.1016/j.procs.2019.11.124
Gray, B., Kirkwood, J., Etemaddar, M., & Monahan, E. (2018). Sustainable Business Models for Community-based Enterprises in Samoa and Tonga. Small Enterprise Research, 25(2), 99–113. https://doi.org/10.1080/13215906.2018.1479293
Hastie, T. J., & Tibshirani, R. J. (1990). Generalized Additive Models. New York: Routledge.
Huang, S., Ding, D., & Chen, Z. (2014). Entrepreneurial Leadership and Performance in Chinese New Ventures: A Moderated Mediation Model of Exploratory Innovation, Exploitative Innovation and Environmental Dynamism. Creativity and Innovation Management, 23(4), 453-471. https://doi.org/10.1111/caim.12085
Igalla, M., Edelenbos, J., & van Meerkerk, I. (2020). What Explains the Performance of Community-based Initiatives? Testing the Impact of Leadership, Social Capital, Organizational Capacity, and Government Support. Public Management Review, 22(4), 602-632. https://doi.org/10.1080/14719037.2019.1604796
Juma, N., James, C. D., & Kwesiga, E. (2015). Sustainable Entrepreneurship in Sub-saharan Africa: The Collaborative Multi-stakeholders Network Model (Working Paper Series Number 174). Topeka, Kansas: School of Business, Washburn University. Retrieved from https://wuir.washburn.edu/handle/10425/269
Kim, D., & Lim, U. (2017). Social Enterprise as a Catalyst for Sustainable Local and Regional Development. Sustainability, 9(8), 1427. https://doi.org/10.3390/su9081427
Kleinhans, R., Van Meerkerk, I., Warsen, R., & Clare, S. (2021). Understanding the Durability of Community Enterprises in England. Results of a Fuzzy-set Qualitative Comparative Analysis. Public Management Review, 23, 1-24. https://doi.org/10.1080/14719037.2021.1999669
Lesser, E., & Prusak, L. (2013). Communities of Practice, Social Capital, and Organizational Knowledge. In The Knowledge Management Yearbook 2000-2001 (pp. 251-259). UK.: Routledge.
Miniano, C. M. B., & Concepcion, M. C. P. (2018). A Correlational Study on Internal Control System Efficiency and Operational Sustainability of Selected Savings and Credit Cooperatives in the Camanava Area of Metropolitan Manila. International Journal of Scientific Research and Management (IJSRM), 6(5), 420-430. https://doi.org/10.18535/ijsrm/v6i5.em09
Mubita, A., Libati, M., & Mulonda, M. (2017). The Importance and Limitations of Participation in Development Projects and Programmes. European Scientific Journal, 13(5), 238-251. https://doi.org/10.19044/esj.2017.v13n5p238
Newman, A., Neesham, C., Manville, G., & Tse, H. H. M. (2018). Examining the Influence of Servant and Entrepreneurial Leadership on the Work Outcomes of Employees in Social Enterprises. The International Journal of Human Resource Management, 29(20), 2905-2926. https://doi.org/10.1080/09585192.2017.1359792
Obrenovic, B., Du, J., Godinic, D., Tsoy, D., Khan, M. A. S., & Jakhongirov, I. (2020). Sustaining Enterprise Operations and Productivity During the COVID-19 Pandemic: “Enterprise Effectiveness and Sustainability Model”. Sustainability, 12(15), 5981. https://doi.org/10.3390/su12155981
Parwez, S. (2017). Community-based Entrepreneurship: Evidences from a Retail Case Study. Journal of Innovation and Entrepreneurship, 6(1), 1–16. https://doi.org/10.1186/s13731-017-0074-z
Pauceanu, A. M., Rabie, N., Moustafa, A., & Jiroveanu, D. C. (2021). Entrepreneurial Leadership and Sustainable Development—A Systematic Literature Review. Sustainability, 13(21), 11695. https://doi.org/10.3390/su132111695
Peredo, A. M., & Chrisman, J. J. (2017). Conceptual Foundations: Community-based Enterprise and Community Development. In M. van Ham, D. Reuschke, R. Kleinhans, C. Mason, & S. Syrett (Eds.), Entrepreneurial Neighbourhoods (pp. 151-178). UK: Edward Elgar Publishing.
Purusottama, A., Trilaksono, T., & Soehadi, A. W. (2018). Community-based Entrepreneurship: A Community Development Model to Boost Entrepreneurial Commitment in Rural Micro Enterprises. MIX: Jurnal Ilmiah Manajemen, 8(2), 429-448. https://doi.org/10.22441/mix.2018.v8i2.015
Quirkos. (n.d.). Qualitative Data Brought to Life. Retrieved from https://www.quirkos.com/
Rahim, H. L., Abidin, Z. Z., Mohtar, S., & Ramli, A. (2015). The Effect of Entrepreneurial Leadership Towards Organizational Performance. International Academic Research Journal of Business and Technology, 1(2), 193-200. Retrieved from http://www.iarjournal.com/wp-content/uploads/IBTC2015-p193-200.pdf
Rashied, M., & Begum, H. (2016). Community Participation in Development Projects in a Low Income Community. Jahangirmagar University Planning Review, 14, 65-76.
Renko, M., El Tarabishy, A., Carsrud, A. L., & Brännback, M. (2015). Understanding and Measuring Entrepreneurial Leadership Style. Journal of Small Business Management, 53(1), 54-74. https://doi.org/10.1111/jsbm.12086
Salmivaara, V. (2017). Legitimacy of Entrepreneurship in Sustainable Development Debates (Doctoral dissertation). Department of Management Studies, School of Business, Aalto University, Finland. https://doi.org/10.13140/RG.2.2.19866.49607
Sandybayev, A. (2019). Impact of Effective Entreprenerial Leadership Style on Organizational Performance: Critical Review. International Journal of Economics and Management, 1(1), 47-55.
Schoemaker, P. J. H., Heaton, S., & Teece, D. (2018). Innovation, Dynamic Capabilities, and Leadership. California Management Review, 61(1), 15-42. https://doi.org/10.1177/0008125618790246
Simplican, S. C., Leader, G., Kosciulek, J., & Leahy, M. (2015). Defining Social Inclusion of People with Intellectual and Developmental Disabilities: An Ecological Model of Social Networks and Community Participation. Research in Developmental Disabilities, 38, 18-29. https://doi.org/10.1016/j.ridd.2014.10.008
Snedaker, S., & Rima, C. (2014). Business Continuity and Disaster Recovery Planning for IT Professionals (2nd ed.). Oxford, UK: Syngress.
Soviana, S. (2015). Toward a Sustainable Community-based Enterprise: Organizational Architecture and Performance. Management and Organizational Studies, 2(1), 72-86. https://doi.org/10.5430/mos.v2n1p72
Terziev, V., Nichev, N., & Georgiev, M. (2019). Current Status of Social Entrepreneurship: Social Enterprises and State. KNOWLEDGE–International Journal, 30(6), 1587-1592. https://doi.org/10.35120/kij30061587T
Tshikovhi, N., & Mvula, A. (2014). Entrepreneurship Education and Its Concerns in South African Universities. International Journal of Higher Education Management (IJHEM), 1(1), 77-85. Retrieved from https://www.ijhem.com/details&cid=6
UN.ESCAP. (2017). Reaching the Farthest First: The State of Social Enterprise in the Philippines. Retrieved from https://hdl.handle.net/20.500.12870/3103
Van Meerkerk, I., Kleinhans, R., & Molenveld, A. (2018). Exploring the Durability of Community Enterprises: A Qualitative Comparative Analysis. Public Administration, 96(4), 651-667. https://doi.org/10.1111/padm.12523
Veit, D., Clemons, E., Benlian, A., Buxmann, P., Hess, T., Spann, M., … Loos, P. (2014). Business Models - An Information Systems Research Agenda. Business & Information Systems Engineering, 6(1), 45-53. https://doi.org/10.1007/s12599-013-0308-y
Bagheri, A. (2017). The Impact of Entrepreneurial Leadership on Innovation Work Behavior and Opportunity Recognition in High-technology SMEs. The Journal of High Technology Management Research, 28(2), 159-166. https://doi.org/10.1016/j.hitech.2017.10.003
Bailey, N., Kleinhans, R., & Lindbergh, J. (2018). Research Institute Report No. 12: An Assessment of Community-based Social Enterprises in Three European Countries. London, UK: Power to Change.
Ballesteros, M. M., & Llanto, G. M. (2017). Strengthening Social Enterprises for Inclusive Growth: Philippines. Philippine Institute for Development Studies. Retrieved from https://base.socioeco.org/docs/pidsdps1704_rev.pdf
Barth, S., Barraket, J., Luke, B., & McLaughlin, J. (2015). Cquaintance or Partner? Social Economy Organizations, Institutional Logics and Regional Development in Australia. Entrepreneurship & Regional Development: An International Journal, 27(3-4), 219-254. https://doi.org/10.1080/08985626.2015.1030458
Chandra, A., McNamara, K. E., Dargusch, P., Caspe, A. M., & Dalabajan, D. (2017). Gendered Vulnerabilities of Smallholder Farmers to Climate Change in Conflict-prone Areas: A Case Study from Mindanao, Philippines. Journal of Rural Studies, 50, 45-59. https://doi.org/10.1016/j.jrurstud.2016.12.011
Claridge, T. (2014, December 7). Why is Social Capital so Important? Institute for Social Capital. Retrieved from https://www.socialcapitalresearch.com/why-is-social-capital-so-important/
Dhewanto, W., Ratnaningtyas, S., Permatasari, A., Anggadwita, G., & Prasetio, E. A. (2020). Rural Entrepreneurship: Towards Collaborative, Participative Models for Economic Sustainability. Entrepreneurship and Sustainability Issues, 8(1), 705-724. http://doi.org/10.9770/jesi.2020.8.1(48)
Dikko, M. (2016). Establishing Construct Validity and Reliability: Pilot Testing of a Qualitative Interview for Research in Takaful (Islamic Insurance). The Qualitative Report, 21(3), 521-528. https://doi.org/10.46743/2160-3715/2016.2243
Fani, S. V., & Subriadi, A. P. (2019). Business Continuity Plan: Examining of Multi-usable Framework. Procedia Computer Science, 161, 275-282. https://doi.org/10.1016/j.procs.2019.11.124
Gray, B., Kirkwood, J., Etemaddar, M., & Monahan, E. (2018). Sustainable Business Models for Community-based Enterprises in Samoa and Tonga. Small Enterprise Research, 25(2), 99–113. https://doi.org/10.1080/13215906.2018.1479293
Hastie, T. J., & Tibshirani, R. J. (1990). Generalized Additive Models. New York: Routledge.
Huang, S., Ding, D., & Chen, Z. (2014). Entrepreneurial Leadership and Performance in Chinese New Ventures: A Moderated Mediation Model of Exploratory Innovation, Exploitative Innovation and Environmental Dynamism. Creativity and Innovation Management, 23(4), 453-471. https://doi.org/10.1111/caim.12085
Igalla, M., Edelenbos, J., & van Meerkerk, I. (2020). What Explains the Performance of Community-based Initiatives? Testing the Impact of Leadership, Social Capital, Organizational Capacity, and Government Support. Public Management Review, 22(4), 602-632. https://doi.org/10.1080/14719037.2019.1604796
Juma, N., James, C. D., & Kwesiga, E. (2015). Sustainable Entrepreneurship in Sub-saharan Africa: The Collaborative Multi-stakeholders Network Model (Working Paper Series Number 174). Topeka, Kansas: School of Business, Washburn University. Retrieved from https://wuir.washburn.edu/handle/10425/269
Kim, D., & Lim, U. (2017). Social Enterprise as a Catalyst for Sustainable Local and Regional Development. Sustainability, 9(8), 1427. https://doi.org/10.3390/su9081427
Kleinhans, R., Van Meerkerk, I., Warsen, R., & Clare, S. (2021). Understanding the Durability of Community Enterprises in England. Results of a Fuzzy-set Qualitative Comparative Analysis. Public Management Review, 23, 1-24. https://doi.org/10.1080/14719037.2021.1999669
Lesser, E., & Prusak, L. (2013). Communities of Practice, Social Capital, and Organizational Knowledge. In The Knowledge Management Yearbook 2000-2001 (pp. 251-259). UK.: Routledge.
Miniano, C. M. B., & Concepcion, M. C. P. (2018). A Correlational Study on Internal Control System Efficiency and Operational Sustainability of Selected Savings and Credit Cooperatives in the Camanava Area of Metropolitan Manila. International Journal of Scientific Research and Management (IJSRM), 6(5), 420-430. https://doi.org/10.18535/ijsrm/v6i5.em09
Mubita, A., Libati, M., & Mulonda, M. (2017). The Importance and Limitations of Participation in Development Projects and Programmes. European Scientific Journal, 13(5), 238-251. https://doi.org/10.19044/esj.2017.v13n5p238
Newman, A., Neesham, C., Manville, G., & Tse, H. H. M. (2018). Examining the Influence of Servant and Entrepreneurial Leadership on the Work Outcomes of Employees in Social Enterprises. The International Journal of Human Resource Management, 29(20), 2905-2926. https://doi.org/10.1080/09585192.2017.1359792
Obrenovic, B., Du, J., Godinic, D., Tsoy, D., Khan, M. A. S., & Jakhongirov, I. (2020). Sustaining Enterprise Operations and Productivity During the COVID-19 Pandemic: “Enterprise Effectiveness and Sustainability Model”. Sustainability, 12(15), 5981. https://doi.org/10.3390/su12155981
Parwez, S. (2017). Community-based Entrepreneurship: Evidences from a Retail Case Study. Journal of Innovation and Entrepreneurship, 6(1), 1–16. https://doi.org/10.1186/s13731-017-0074-z
Pauceanu, A. M., Rabie, N., Moustafa, A., & Jiroveanu, D. C. (2021). Entrepreneurial Leadership and Sustainable Development—A Systematic Literature Review. Sustainability, 13(21), 11695. https://doi.org/10.3390/su132111695
Peredo, A. M., & Chrisman, J. J. (2017). Conceptual Foundations: Community-based Enterprise and Community Development. In M. van Ham, D. Reuschke, R. Kleinhans, C. Mason, & S. Syrett (Eds.), Entrepreneurial Neighbourhoods (pp. 151-178). UK: Edward Elgar Publishing.
Purusottama, A., Trilaksono, T., & Soehadi, A. W. (2018). Community-based Entrepreneurship: A Community Development Model to Boost Entrepreneurial Commitment in Rural Micro Enterprises. MIX: Jurnal Ilmiah Manajemen, 8(2), 429-448. https://doi.org/10.22441/mix.2018.v8i2.015
Quirkos. (n.d.). Qualitative Data Brought to Life. Retrieved from https://www.quirkos.com/
Rahim, H. L., Abidin, Z. Z., Mohtar, S., & Ramli, A. (2015). The Effect of Entrepreneurial Leadership Towards Organizational Performance. International Academic Research Journal of Business and Technology, 1(2), 193-200. Retrieved from http://www.iarjournal.com/wp-content/uploads/IBTC2015-p193-200.pdf
Rashied, M., & Begum, H. (2016). Community Participation in Development Projects in a Low Income Community. Jahangirmagar University Planning Review, 14, 65-76.
Renko, M., El Tarabishy, A., Carsrud, A. L., & Brännback, M. (2015). Understanding and Measuring Entrepreneurial Leadership Style. Journal of Small Business Management, 53(1), 54-74. https://doi.org/10.1111/jsbm.12086
Salmivaara, V. (2017). Legitimacy of Entrepreneurship in Sustainable Development Debates (Doctoral dissertation). Department of Management Studies, School of Business, Aalto University, Finland. https://doi.org/10.13140/RG.2.2.19866.49607
Sandybayev, A. (2019). Impact of Effective Entreprenerial Leadership Style on Organizational Performance: Critical Review. International Journal of Economics and Management, 1(1), 47-55.
Schoemaker, P. J. H., Heaton, S., & Teece, D. (2018). Innovation, Dynamic Capabilities, and Leadership. California Management Review, 61(1), 15-42. https://doi.org/10.1177/0008125618790246
Simplican, S. C., Leader, G., Kosciulek, J., & Leahy, M. (2015). Defining Social Inclusion of People with Intellectual and Developmental Disabilities: An Ecological Model of Social Networks and Community Participation. Research in Developmental Disabilities, 38, 18-29. https://doi.org/10.1016/j.ridd.2014.10.008
Snedaker, S., & Rima, C. (2014). Business Continuity and Disaster Recovery Planning for IT Professionals (2nd ed.). Oxford, UK: Syngress.
Soviana, S. (2015). Toward a Sustainable Community-based Enterprise: Organizational Architecture and Performance. Management and Organizational Studies, 2(1), 72-86. https://doi.org/10.5430/mos.v2n1p72
Terziev, V., Nichev, N., & Georgiev, M. (2019). Current Status of Social Entrepreneurship: Social Enterprises and State. KNOWLEDGE–International Journal, 30(6), 1587-1592. https://doi.org/10.35120/kij30061587T
Tshikovhi, N., & Mvula, A. (2014). Entrepreneurship Education and Its Concerns in South African Universities. International Journal of Higher Education Management (IJHEM), 1(1), 77-85. Retrieved from https://www.ijhem.com/details&cid=6
UN.ESCAP. (2017). Reaching the Farthest First: The State of Social Enterprise in the Philippines. Retrieved from https://hdl.handle.net/20.500.12870/3103
Van Meerkerk, I., Kleinhans, R., & Molenveld, A. (2018). Exploring the Durability of Community Enterprises: A Qualitative Comparative Analysis. Public Administration, 96(4), 651-667. https://doi.org/10.1111/padm.12523
Veit, D., Clemons, E., Benlian, A., Buxmann, P., Hess, T., Spann, M., … Loos, P. (2014). Business Models - An Information Systems Research Agenda. Business & Information Systems Engineering, 6(1), 45-53. https://doi.org/10.1007/s12599-013-0308-y
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Research Articles
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How to Cite
CASIM-SAMAMA, Norkaina.
Predictors of Sustainable Community-based Enterprises in Southern Philippines.
Journal of Community Development Research (Humanities and Social Sciences), [S.l.], v. 16, n. 3, p. 85-96, aug. 2023.
ISSN 2985-0231.
Available at: <https://www.journal.nu.ac.th/JCDR/article/view/Vol-16-No-3-2023-85-96>. Date accessed: 30 apr. 2024.
doi: https://doi.org/10.14456/jcdr-hs.2023.27.