Measures of Sustainability Among Small and Medium Retail Enterprises: An Exploratory Factor Analysis

Abstract

This paper aimed to develop a multidimensional framework of sustainability among small and medium retail enterprises (SMREs) in Davao City. The study employed a quantitative, non-experimental research design employing Exploratory Factor Analysis (EFA). An initial face to face interview from 12 key informants who are business owners, managers and personnels from Department of Trade and Industry and Business Bureau of Davao City were the respondents to gather relevant factors. Out of the responses collected and augmented by related literature and studies, a total of 54 items were developed to compose the data collection tool administered to 231 SMREs in Davao City. Using Exploratory Factor Analysis, 29 items remained in the model to compose the six constructs after 7 rotations and iterations, making them the final factors measuring sustainability among SMREs in Davao City. Using thematic analysis, constructs were generated to include customer feedback and responsiveness, strong customer service and support, financial management and budgeting, market research and understanding customer needs, exercise religious faith to God and strong leadership and management. Notably, a new factor exercise of religious faith to God was found in the result of the study. Understanding the underlying structures of sustainability in SMREs can serve as strategic framework and a prioritization guide to ensure business continuity, economic resilience, and long-term sustainable growth.