Lean Management and Entrepreneurial Competencies on Business Resilience of Micro and Small Enterprises
DOI:
https://doi.org/10.54536/jebs.v2i1.7735Keywords:
Business Resilience, Enterprises, Entrepreneurial Competencies, Lean Management PracticesAbstract
This study investigates the influence of lean management practices and entrepreneurial competencies on the business resilience of micro and small enterprises (MSEs) in the third district of Bukidnon, Philippines. Recognizing MSEs as vital contributors to the local economy yet vulnerable to operational challenges and external disruptions, the research aims to understand how these firms adapt and sustain growth amid adversity. Employing a quantitative approach, data were collected from 400 MSE owners across eight municipalities through a structured questionnaire measuring business profile, lean management dimensions, entrepreneurial competencies, and resilience factors. Findings reveal that most MSEs are micro-sized, sole proprietorships engaged primarily in retail, with a majority operating for less than ten years. Lean management practices are highly adopted, particularly in process efficiency, standardization, and waste minimization. Similarly, entrepreneurial competencies are demonstrated at a considerable level among respondents. The study establishes a significant positive relationship between lean management, entrepreneurial competencies, and business resilience, highlighting the critical role of optimized operations and owner skills in enhancing adaptive capacity and vulnerability management. These insights underscore the importance of tailored support programs that foster lean practices and entrepreneurial development to improve the sustainability and resilience of MSEs in resource-constrained, rural settings. Recommendations include promoting continual improvement initiatives and capacity-building interventions targeting emerging enterprises to strengthen their survivability and growth prospects.
References
Achuti, E. O., & Nyaboga, Y. B. (2025). Entrepreneurship education for sustainable development goals: A systematic review and future directions. Journal of Entrepreneurship & Business Strategies, 1(2), 34–43. https://doi.org/10.54536/jebs.v1i2.5608
Alkhoraif, A., Rashid, H., & McLaughlin, P. (2019). Lean implementation in small and medium enterprises: Literature review. Operations Research Perspectives, 6, Article 100089. https://doi.org/10.1016/j.orp.2018.100089
Asare-Kyire, L., Appienti, W. A., Bonsu, C. A., & Ackah, O. (2023). Entrepreneurial orientation and organizational resilience: Role of organizational reconfiguration and absorptive capabilities. Open Journal of Business and Management, 11, 2014–2033. https://doi.org/10.4236/ojbm.2023.115111
Ayogoi, Y. S. (2026). Organizational performance evaluation: A bifocal approach integrating objective and subjective parameters. Journal of Entrepreneurship & Business Strategies, 2(1), 14–34. https://doi.org/10.54536/jebs.v2i1.6750
Baggen, Y., Kampen, J. K., Naia, A., Biemans, H. J. A., Lans, T., & Mulder, M. (2018). Development and application of the opportunity identification competence assessment test (OICAT) in higher education. Innovations in Education and Teaching International, 55(6), 735–745. https://doi.org/10.1080/14703297.2017.1348962
Bangko Sentral ng Pilipinas. (2023). Annual report 2022. https://www.bsp.gov.ph/Pages/AboutTheBank/AnnualReports/2022AnnualReport.aspx
Bartik, A. W., Bertrand, M., Cullen, Z., Glaeser, E. L., Luca, M., & Stanton, C. (2020). The impact of COVID-19 on small business outcomes and expectations. Proceedings of the National Academy of Sciences, 117(30), 17656–17666. https://doi.org/10.1073/pnas.2006991117
Bartram, D. (2005). The Great Eight competencies: A criterion-centric approach to validation. Journal of Applied Psychology, 90(6), 1185–1203. https://doi.org/10.1037/0021-9010.90.6.1185
Bhamu, J., & Sangwan, K. S. (2014). Lean manufacturing: Literature review and research issues. International Journal of Operations & Production Management, 34(7), 876–940. https://doi.org/10.1108/IJOPM-08-2012-0315
Biadacz, R. (2024). Application of Kaizen and Kaizen Costing in SMEs: Opportunities and barriers to continuous improvement in manufacturing and service enterprises. Production Engineering Archives, 30(2), 89–102. https://doi.org/10.30657/pea.2024.30.10
Botha, M., Carruthers, T. J., & Venter, M. W. (2019). The relationship between entrepreneurial competencies and the recurring entrepreneurial intention and action of existing entrepreneurs. Southern African Journal of Entrepreneurship and Small Business Management, 11(1), Article a191. https://doi.org/10.4102/sajesbm.v11i1.191
Carandang, B. (2023, January 7). What can MSMEs expect from DTI and other agencies in 2023? The Manila Times. https://www.manilatimes.net/2023/01/07/business/top-business/what-can-msmes-expect-from-dti-and-other-agencies-in-2023/1873113
Cohen, W. M., & Levinthal, D. A. (1990). Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, 35(1), 128–152. https://doi.org/10.2307/2393553
Conz, E., & Magnani, G. (2020). A dynamic perspective on the resilience of firms: A systematic literature review and a framework for future research. European Management Journal, 38(3), 400–412. https://doi.org/10.1016/j.emj.2019.11.005
Department of Trade and Industry. (2024). Micro, small and medium enterprise development plan 2023–2028. Republic of the Philippines. https://dtiwebfiles.s3.ap-southeast-1.amazonaws.com/BSMED/MSMED+Plan+2023-2028/MSMED+Plan+2023-2028_approved+07Nov2024.v2.pdf
Duchek, S. (2020). Organizational resilience: A capability-based conceptualization. Business Research, 13(1), 215–246. https://doi.org/10.1007/s40685-019-0085-7
Erdiaw-Kwasie, M. O., Abunyewah, M., Yusif, S., & Arhin, P. (2023). Small and medium enterprises (SMEs) in a pandemic: A systematic review of pandemic risk impacts, coping strategies and resilience. Heliyon, 9(10), Article e20352. https://doi.org/10.1016/j.heliyon.2023.e20352
Flaminiano, J. P. C., Domingo, R. T., & Rivera, J. P. R. (2024). Entrepreneurial bricolage: A key to innovation for SMEs in a resource-constrained environment. Small Business International Review, 8(2), 112–129. https://doi.org/10.26784/sbir.v8i2.645
Hadjielias, E., Christofi, M., & Tarba, S. (2022). Contextualizing small business resilience during the COVID-19 pandemic: Evidence from small business owner-managers. Small Business Economics, 59(4), 1351–1380. https://doi.org/10.1007/s11187-021-00588-0
Islam, M. S., & Ahmed, S. (2024). Work standardization in lean manufacturing for improvement of production line performance in SME. Malaysian Journal on Composite Science and Manufacturing, 14(1), 68–82. https://akademiabaru.com/submit/index.php/mjcsm/article/view/5066
Jasti, N. V. K., & Kodali, R. (2015). A critical review of lean supply chain management frameworks: Proposed framework. Production Planning & Control, 26(13), 1051–1068. https://doi.org/10.1080/09537287.2015.1004563
Koporcic, N., Kukkamalla, P. K., Markovic, S., & Maran, T. (2025). Resilience of small and medium-sized enterprises in times of crisis: An umbrella review. Review of Managerial Science, 20, 301–329. https://doi.org/10.1007/s11846-025-00883-0
Kusa, R., Duda, J., & Suder, M. (2021). Explaining SME performance with fsQCA: The role of entrepreneurial orientation, entrepreneur motivation, and opportunity perception. Journal of Innovation & Knowledge, 6(4), 234–245. https://doi.org/10.1016/j.jik.2021.06.001
Kyndt, E., & Baert, H. (2015). Entrepreneurial competencies: Assessment and predictive validity. International Journal of Entrepreneurial Behavior & Research, 21(1), 27–49. https://doi.org/10.1108/IJEBR-07-2013-0116
Lengnick-Hall, C. A., Beck, T. E., & Lengnick-Hall, M. L. (2011). Developing a capacity for organizational resilience through strategic human resource management. Human Resource Management Review, 21(3), 243–255. https://doi.org/10.1016/j.hrmr.2010.07.001
Machingura, T., Adetunji, O., Muyavu, A. T., & Maware, C. (2024). Can human lean practices affect business performance? Evidence from Zimbabwe service industries. The TQM Journal. https://doi.org/10.1108/TQM-06-2023-0176
Malik, F. S., & Terzidis, O. (2025). Thriving in turbulence: Resilience and strategic adaptation in global business. Review of Managerial Science. https://doi.org/10.1007/s11846-025-00940-8
Maravilla, V. S., Jr., & Flores, G. (2025). Entrepreneurial competency, resilience, and financial literacy: Drivers of sustainable performance in SMEs for societal welfare. Journal of Sustainability, Society, and Eco-Welfare, 2(2), 159–176. https://doi.org/10.61511/jssew.v2i2.2025.1374
Martínez-Martínez, S. L., Cegarra-Navarro, J. G., & García-Pérez, A. (2020). Entrepreneurial profiles at the university: A competence-based approach. Frontiers in Psychology, 11, Article 612796. https://doi.org/10.3389/fpsyg.2020.612796
Mashingaidze, M. (2025). Business model innovation and the resilience of SMEs in developing countries: A context of strategy. International Journal of Research in Business and Social Science, 14(9), 83–92. https://doi.org/10.20525/ijrbs.v14i9.4596
McManus, S., Seville, E., Vargo, J., & Brunsdon, D. (2008). Facilitated process for improving organizational resilience. Natural Hazards Review, 9(2), 81–90. https://doi.org/10.1061/(ASCE)1527-6988(2008)9:2(81)
Minh, N. D., & Kien, D. T. (2021). A four-phase framework for lean implementation in small and medium enterprises. Management, 25(1), 259–277. https://doi.org/10.2478/manment-2019-0069
Moraga, M., Abalos, J. S., Molina, A. D., Ortiz, P. A., & Vinluan, A. R. (2024). Organizational resilience and its effect on economic sustainability of selected SME restaurants in Makati City, Philippines. Review of Integrative Business and Economics Research, 13(2), 268–282.
Morris, M. H., Webb, J. W., Fu, J., & Singhal, S. (2013). A competency-based perspective on entrepreneurship education: Conceptual and empirical insights. Journal of Small Business Management, 51(3), 352–369. https://doi.org/10.1111/jsbm.12023
Musyoka, J. K., & Ouma, C. (2024). Effect of crisis leadership on performance of SMEs during COVID-19 pandemic in Nairobi County, Kenya. Kabarak Journal of Research & Innovation, 13(4), 95–112. https://doi.org/10.58216/kjri.v13i4.376
Ndlela, S., & Barnes, N. (2024). The influence of creative problem-solving on the longevity of small and medium enterprises. Management and Economics in Advancement Conference Proceedings, 1(1), 174–193. https://doi.org/10.33422/meaconf.v1i1.174
Ngo, T. T., & Vu, T. H. (2025). The impacts of psychological capital, risk-taking propensity, and entrepreneurial competence on the sustainability performance of SMEs. Cogent Business & Management, 12(1), Article 2466810. https://doi.org/10.1080/23311975.2025.2466810
Nursini, N. (2020). Micro, small, and medium enterprises (MSMEs) and poverty reduction: Empirical evidence from Indonesia. Development Studies Research, 7(1), 153–166. https://doi.org/10.1080/21665095.2020.1823238
Pacific Disaster Center. (2021). Bukidnon, the Philippines: NDPBA province profile. https://dev.pdc.org/wp-content/uploads/Bukidnon.pdf
Pakdil, F., & Leonard, K. M. (2015). The effect of culture on lean management implementation. Journal of Manufacturing Technology Management, 26(2), 164–185. https://doi.org/10.1108/JMTM-12-2012-0120
Panigrahi, S., Al Ghafri, K. K., Al Alyani, W. R., Ali Khan, M. W., Al Madhagy, T., & Khan, A. (2023). Lean manufacturing practices for operational and business performance: A PLS-SEM modeling analysis. International Journal of Engineering Business Management, 15, 1–16. https://doi.org/10.1177/18479790221147864
Philippine Statistics Authority. (2021). Defining Philippine micro, small and medium enterprises. https://psa.gov.ph
Realyvásquez-Vargas, A., Arredondo-Soto, K. C., Blanco-Fernández, J., Sandoval-Quintanilla, J. D., Jiménez-Macías, E., & García-Alcaraz, J. L. (2019). Implementation of production process standardization: A case study of a publishing company from the SME sector. Processes, 7(10), Article 646. https://doi.org/10.3390/pr7100646
Rebollido, G. A. (2024, September). High poverty rates, other challenges still plague Mindanao – MSU professor. MindaNews. https://mindanews.com/top-stories/2024/09/high-poverty-rates-other-challenges-still-plague-mindanao-msu-professor/
Rojasara, P. M., & Qureshi, M. N. (2013). Performance improvement through 5S in small scale industry: A case study. International Journal of Modern Engineering Research, 3(3), 1654–1660. https://www.researchgate.net/publication/317358245
Sakib, M. N., Rabbani, M. R., Hawaldar, I. T., Jabber, M. A., Hossain, J., & Sahabuddin, M. (2022). Entrepreneurial competencies and SMEs’ performance in a developing economy. Sustainability, 14(20), Article 13643. https://doi.org/10.3390/su142013643
Shah, R., & Ward, P. T. (2007). Defining and developing measures of lean production. Journal of Operations Management, 25(4), 785–805. https://doi.org/10.1016/j.jom.2006.07.010
Stone, K. B. (2012). Four decades of lean: A systematic literature review. International Journal of Lean Six Sigma, 3(2), 112–132. https://doi.org/10.1108/20401461211243702
Tabinas, M. I. C., Paradero, A. L., & Casinillo, L. F. (2022). Business strategies of micro, small, and medium enterprises in response to the COVID-19 pandemic. Innovative Technology and Management Journal, 5(1), 24–37.
Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319–1350. https://doi.org/10.1002/smj.640
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533. https://doi.org/10.1002/smj.4250180803
Tortorella, G. L., Kumar, M., Thürer, M., Browning, T. R., Hines, P., Romero, D., & Furlan, A. (2025). Lean and organizational resilience: A discussion. International Journal of Production Economics, 293, Article 109897. https://doi.org/10.1016/j.ijpe.2025.109897
Trupp, A., Salman, A., Stephenson, M. L., Chan, L. F., & Gan, J. E. (2025). A systematic review of challenges faced by micro and small enterprises in tourism destinations: Producing solutions through resilience building and sustainable development. Tourism Planning & Development, 22(3), 301–323. https://doi.org/10.1080/21568316.2024.2307970
United Nations. (2015). Transforming our world: The 2030 agenda for sustainable development. United Nations General Assembly. https://sdgs.un.org/2030agenda
United Nations Development Programme. (2020). MSME value chain: Rapid response survey (wave 2). UNDP Philippines. https://dtiwebfiles.s3-ap-southeast-1.amazonaws.com/COVID19Resources/Reports/MSME+Value+Chain+Rapid+Response+Survey_Wave+2.pdf
Warren, K. (2025). Absorptive capacity as a catalyst for resilience in SMEs: A comprehensive literature analysis. Journal of Research and Innovation in Entrepreneurship, 9(1), 510–542. https://www.jriiejournal.com/absorptive-capacity- as-a-catalyst-for-resilience-in-smes-a-literature-analysis/
Womack, J. P., & Jones, D. T. (1996). Lean thinking: Banish waste and create wealth in your corporation. Simon & Schuster.
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Jun Mar L. Romea, Ronel V. Sudaria
This work is licensed under a Creative Commons Attribution 4.0 International License.
