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GBC 2019 12th Global Business Conference

Conference Proceedings ISSN 2362-7832


De La Salle-College of Saint Benilde
March 2, 2019

12th Global Business Conference


CONFERENCE PROCEEDINGS
Volume 8
ISSN No. 2362 – 7832

1
GBC 2019 12th Global Business Conference
Conference Proceedings ISSN 2362-7832
De La Salle-College of Saint Benilde
March 2, 2019

th
The 12 Global
Business Conference
Conference Proceedings
Volume 8
ISSN No. 2362-7832

Theme: “Sustainable Marketing”


March 2, 2019
Augusto-Rosario Gonzalez Theater De La Salle-
College of Saint Benilde, Manila

Co-organized by:

De La Salle-College of Saint Benilde, Manila

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GBC 2019 12th Global Business Conference
Conference Proceedings ISSN 2362-7832
De La Salle-College of Saint Benilde
March 2, 2019
Option 1 (Morning Session)

7:00 – 8:00
Registration

8:00 – 8:10
Opening Prayer and National Anthem

8:10 – 8:20
Opening Remark
Mr. Siegfred Javelosa
Dean, School of Management and Information Technology
De La Salle-College of Saint Benilde, Manila

8:20 – 8:45
Speaker 1
From Carabao Milk to Champagne: The Birth of CalaBoo: Laying the Groundwork for a Global Social
Enterprise
Ms. Marie Cavosora

8:45 – 9:10
Speaker 2
Environmental Heroism: The Case of Mount Purro Nature Reserve
Mr. Toto Malvar

9:10 – 9:45
Speaker 3
No Hungry Filipino: How Aquaponics Can Help in Food Production
Mr. Robi Del Rosario

9:45 – 10:10
Question and Answer

10:10 – 10:35

3
GBC 2019 12th Global Business Conference
Conference Proceedings ISSN 2362-7832
De La Salle-College of Saint Benilde
March 2, 2019
Making Travel a Community Engagement
Ms. Risa Barcelona

10:35 – 11:00
What Makes a Sustainable Business?
Mr. Rey Lugtu

11:00 – 11:35
Question and Answer

11:35 – 12:00
Open Forum and Awarding of Certificates

Option 2 (Afternoon Session)

12:30 – 1:15
Registration

1:15 – 1:25
Opening Prayer and National Anthem

1:25 – 1:35
Opening Remarks
Mr. Bienvenido Encarnacion
Chair, Global Business Conference

1:35 – 2:00
Speaker 1
Is Digital Marketing Green?
Dr. Donald Lim

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GBC 2019 12th Global Business Conference
Conference Proceedings ISSN 2362-7832
De La Salle-College of Saint Benilde
March 2, 2019
2:00 – 2:25
Speaker 2
Cause Related Marketing and Corporate Social Responsibility: Are They Twins?
Dr. Shweta Pandey

2:25 – 2:35
Question and Answer

2:35 – 2:50
Intermission

2:50 – 3:20
Speaker 3
Using the Digital Marketing for Our Travel Destinations
Ms. Jeannievilyn Ola

3:20 – 3:50
Speaker 4
No Plastic Please! Let’s Go Sustainable
Mr. Pocholo Miguel Espina

3:50 – 4:20
Speaker 5
Sustainable Business and the Good Trade
Ms. Jana Bunagan

4:20 – 4:50
Question and Answer

4:50 – 5:10
Open Forum and Awarding of Certificates

Option 3 (Research Presentations)


Simultaneous Event

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GBC 2019 12th Global Business Conference
Conference Proceedings ISSN 2362-7832
De La Salle-College of Saint Benilde
March 2, 2019

12:30 – 1:20
Registration

1:20 – 1:40
Research Room 1 (M501)
Moderator: Mr. Rayan Dui

A Critical Realists Approach to Seafarer’s Non-Compliance to Standards On-Board Ship


By Rayan Dui
De La Salle University Manila

1:40 – 2:00
A Study on “Green Cup”: An Innovation for Sustainable Development
By Ma. Elenita Entila, Evangeline Mina and Philip James Rocha
De La Salle-College of Saint Benilde

2:00 – 2:20
Facebook Advertising and Repurchase Intention of Selected Consumers of Four Leaf Spa
By Edralin Lim
De La Salle University

2:20 – 2:40
Age in Increasing Employee Telecommuting Intensity Which Leads to Job Satisfaction
By Gregory Michael Berces
De La Salle University Manila

2:40 – 3:00 B R E A K

3:00 – 3:20
PAK-LENGKE: The Application of QR Code as payment method in the New Marulas Wet
Market
By Kyle Benjamine B. Parpan and Timothy John P. Zamora
De La Salle University Manila

3:20 – 3:40
The Sustainability Factor of Telecommuting as an Employee Benefit Used as a Business
Management Strategy
By Jean Orillos
De La Salle University Manila

3:40 – 4:00
A System that Uses Gamification as the Means to have a Sustainable and Innovative
Customer
Loyalty Marketing Program

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GBC 2019 12th Global Business Conference
Conference Proceedings ISSN 2362-7832
De La Salle-College of Saint Benilde
March 2, 2019
By Michael Karlos Dizon
De La Salle University Manila

4:00 – 4:20
Factors Affecting Consumers’ Decision towards Online Shopping: Basis for Retail Trade
Business Innovation in Metro Manila
By Yevgenia Kirsten De Guzman, Veejay Gurapo and Ariel Pineda
De La Salle-College of Saint Benilde Manila

4:20 – 4:40
Mental Health among Graduate Students
By Eunicia Rica S. Mediodia
De La Salle University Manila

4:40 – 5:00
The Entrepreneurial Intention of Select DLSU Entrepreneurship Students Applying The
Theory of Planned Behavior
By Roderick Pangindian
De La Salle University Manila

5:00 – 5:20
Sun Life Womb-to-Tomb Application Upgrade: A Sustainable Marketing Innovation to
Increase Sun Life Client’s Loyalty
By Ryan John Tresplacios and Leo B. Malagar
De La Salle University Manila

Research Room 2 (M502)


Facilitator: Mr. Miguel Paolo Paredes

1:20 – 1:40
Fostering Employee Happiness: Personal Growth Program as Foundation for Employee
Performance and Productivity in Organizations
By Miguel Paolo Paredes
De La Salle University Manila

1:40 – 2:00
#StayWoke: A Study on the Responses of Gen Y (Millennial) Consumers to the Two
Types of Green Marketing Messaging
By Genelyn Paguibitan
De La Salle University Manila

2:00 – 2:20
An Examination of Undergraduate Business Student’s Motivation towards Venture Creation
By Gemma Reyes
University of the Philippines Los Baños

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GBC 2019 12th Global Business Conference
Conference Proceedings ISSN 2362-7832
De La Salle-College of Saint Benilde
March 2, 2019

2:20 – 2:40
Examining the Moderating Effect of Financial Literacy on Graduating Student’s
Intention to Save: An Application of Theory of Planned Behavior
By Joviel Teves
De La Salle University Manila

2:40 – 3:00 B R E A K

3:00 – 3:20
Security of Tenure versus Management Prerogatives: A Study on the Legal Implications
of Security of Tenure Which Affects the Sustainability of an Enterprise
By Atty. John Evan Miguel
De La Salle-College of Saint Benilde

3:20 – 3:40
Streaming on Netflix: Motivations towards Netflix Subscriptions
By Ronalyn C. Donado and Kaira S. Tiozon
De La Salle University Manila

3:40 – 4:00
A Sustainable Customer Royalty Approach-Begin with the Success of Wechat
By Jing Li
De La Salle University Manila

4:00 – 4:20
A Customer Loyalty Program for E-Commerce Industry on Mayer’s Cognitive Theory of
Multimedia Learning and the Psychology of Choice
By Judy Ann Garcia
De La Salle University Manila

4:20 – 4:40
Green Innovation Factors and Practices in Pampanga: For Profit or for Environmental
Protection?
By Joy Anne Evaristo
Holy Angel University

4:40 – 5:00
Pension-Backed Housing Loan: A Forward Integration Strategy
By Krizelle Anne Taguinod
De La Salle University Manila

5:00 – 5:20
Employing Persons with Disabilities: Implication of Cause-Related Marketing to Purchase Intention
in Hotels in the Philippines
By Paulo L. Esmedilla

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GBC 2019 12th Global Business Conference
Conference Proceedings ISSN 2362-7832
De La Salle-College of Saint Benilde
March 2, 2019
De La Salle University Manila

5:20 – 5:40
The Relationship of Employee Engagement and Job Satisfaction to Organizational
Commitment of Employees to All Transport Network
By Marinela Cabusao
De La Salle University Manila

Research Room 3 (M402)


Facilitator: Mr. Joseph Emil Santos

1:20 – 1:40
Laguna Consumers’ Buying Tendencies towards HMO
By Joseph Emil Santos, Carlo Miguel Saavedra and Camille Bernadette Alina
De La Salle University Manila

1:40 – 2:00
Structural Performance of Fish Marketing in Rural Municipalities of Occidental
Mindoro, Philippines
By Ryan Mark Ambong and Dr. Liberty Mendaña
Occidental Mindoro State College

2:00 – 2:20
The Impact of Perceptions of Corporate Social Responsibility and the Existence of Labor
Contractualization on Job Satisfaction of Employees in Selected Companies in the Food
and Beverage Industry in Metro Manila
By Carlo Miguel Isip, Mariklaire Manalastas, Jason Cyrus Polloso, Franchesca
Reside and Jerwin Tubay
De La Salle University Manila

2:20 – 2:40
An Analysis of Organizational Commitment in Non-profit Organizations Using Partial
Least Squares Structural Equation Modeling
By Maria Adiel Aguiling
De La Salle University Manila

2:40 – 3:00 B R E A K

3:00 – 3:20
Service Quality of Mobile Money Agents in Urban Philippines from the Perspective of
Generation Z
By Aristotle Manuel Go
De La Salle University Manila

3:20 – 3:40

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GBC 2019 12th Global Business Conference
Conference Proceedings ISSN 2362-7832
De La Salle-College of Saint Benilde
March 2, 2019
Assessment of the Sustainable Development Attributes of Western Philippines
University
By Cecilia Malolos
De La Salle University Manila & Western Philippines University

3:40 – 4:00
Marketing Strategies for “The Bamboo Company”
By Maiko Luz Dulos
De La Salle University Manila

4:00 – 4:20
Enabling the Disabled: An Analysis of the Works, Policies, and Programs of the Philippine
Government in Leveling the Employability of Persons with Disabilities (PWD’s)
By Regine Olita
De La Salle University

4:20 – 4:40
“Paternity Leave: Improving Global Trade and Competitiveness among Philippine Workers”
By Jose Gabriel Fornier
De La Salle University Manila

4:40 - 5:00
Applied Green Marketing Strategies in Salikneta Farm, San Jose Del Monte, Bulacan:
Towards Sustainability
By Dr. Francia Santos,Christopher Manalad, Francis Ian Maclang and Shahn
De Leon
De La Salle Araneta University

5:00 – 5:20
Retirement Benefit Plan: An Assessment to Pro-Long Employee Engagement
By Crystel-Joy Tamon
De La Salle University Manila

5:20 – 5:40
An Application Of The Theory Of Planned Behavior In The Sport Of Spectatorship: A Study On The
Factors Influencing Peoples’ Intention To Watch UAAP Sporting Events
By Francois Licono
De La Salle University Manila

Research Room 4 (M403)


Facilitator: Ms. Mary Julie Balarbar

1:20 -1:40
The Fast and the Glorious: Identifying the Influencing Factors in Filipino Consumers’ Patronage on Grab
in the Sharing Economy

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GBC 2019 12th Global Business Conference
Conference Proceedings ISSN 2362-7832
De La Salle-College of Saint Benilde
March 2, 2019
By Chris Evert Resurreccion and Pauline Besmonte
De La Salle University

1:40 – 2:00
Marketing Strategies of the Furniture Businesses in Pangasinan: Innovating a Traditional
Industry of Pangasinan
By Dr. Jeanica Joson
University of Luzon

2:00 – 2:00
Self-Assessment of Sustainability of a Smallholder Mushroom Farm Business Venture in
Marilao, Bulacan: Using FAO SAFA FRAMEWORK
By Virgilia Arispe
De La Salle University Manila

2:20 – 2:40
Focus: H&M’s Sustainability Efforts as Seen by Millennials
By Mary Julie Balarbar
De La Salle University Manila

2:40 – 3:00 B R E A K

3:00 – 3:20
A Research Study on Why key Employees Leave and How to Retain Talents
By Khadija Cajayon and Leo B. Malagar
De La Salle University Manila

3:20 – 3:40
It’s A Wrap: Building Customer Loyalty through Recycling in the Gift-Wrapping Industry
By Eron Jose
De La Salle University Manila

3:40 – 4:00
The Connects and Disconnects of Selected Regulatory Agencies’ Implementation of Electronic
Compliance System: A Case Study
By Dr. Hilario Caraan
De La Salle University

4:00 – 4:20
Effects of Influencer Marketing on Customer Purchasing Intention of Startup Products
By Wang Jun Hang and Keith Adam P. Reyes
De La Salle University

4:20 – 4:40
Investigating the Factors in Sustainable Choices and Practices of Filipino Consumers
By Jonna Baquillas

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GBC 2019 12th Global Business Conference
Conference Proceedings ISSN 2362-7832
De La Salle-College of Saint Benilde
March 2, 2019
Asia Pacific College

4:40 – 5:00
Impact of Attitude, Subjective Norms, Perceived Behavioral Control and Competencies
To Intention to Succeed in the Family Business: The Case of De La Salle University-Manila Students
By Patrick Hariramani
De La Salle University Manila

5:00 – 5:20
Utilization of Application Software in the Implementation of Sustainable Customer
Loyalty Program
By Lovielyn Krystel Asinas
De La Salle University Manila

Research Room 5 (M408)


Facilitator: Mr. Carlo Miguel Saavedra

1:20 – 1:40
The Impact of Economic, Environmental, and Social Dimensions of Sustainability
Reporting on Profitability, Liquidity, and Solvency of Selected ASEAN Real Estate and
Construction Companies
By Julia Mari Gumiran, Jason Robert Mendoza, Kim Kathlyn Pua, Odlanyer
Ramirez and Dr. Marivic Manalo
De La Salle University Manila

1:40 – 2:00
Go Go Going Green: A Look at Green Marketing Initiatives
By Rajan Sadhwani and Jose Luis Legaspi
De La Salle University Manila

2:00 – 2:20
Internal Branding Practices and Organizational Citizenship Behavior in a Large Food Processing
Company: Implications for an Employee-Driven Sustainability Performance
By Raymond Paderna, Miguel Carlos Mendoza, Luis Antonio Orosa and Jose Gabriel Recto
De La Salle University Manila

2:20 – 2:40
A Study to Enhance Awareness, Utilization and Participation in Republic Act No. 9505
Or Personal Equity and Retirement Account Act of 2008
By Jason Renomeron
De La Salle University Manila

2:40 – 3:00 B R E A K

3:00 – 3:20

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GBC 2019 12th Global Business Conference
Conference Proceedings ISSN 2362-7832
De La Salle-College of Saint Benilde
March 2, 2019
Sustainable Approaches on Humanistic Leadership & Employee Welfare Benefits and Its
Impact on Business Performance and Healthy Organizations
By Carlo Maladaga
De La Salle University Manila

3:20 – 3:40
Going Global by Being Local: A Research Study on Armco’s Bid to Globalization
Through Local Culture Integration
By John Michael Hernandez and Leo B. Malagar
ARMCO Healthcare Services Inc.

3:40 – 4:00
Marketing and Sustainable Business
By Benison Cu
De La Salle University Manila

4:00 – 4:20
The Moderating Effect of Affective Commitment on Life Insurance Policy Repurchase
By Abigail Nicole V. Cruz and Shaira Eva C. Cutamora
De La Salle University Manila

4:20 – 4:40
Integrating Theory and Practice on Sustainability Marketing: The Asia Pacific Tambuli
Awards Model
By Leah May Tacuel
De La Salle University Manila

4:40 – 5:00
Let my E-wallet Pay: The Role of User Satisfaction and Convenience on E-wallet Use
By Carlo Miguel Saavedra, Joseph Emil Santos and Jose Luis Liongson
De La Salle University Manila

5:00 – 5:20
The Impact of Work from Home, Compressed Work Week and Flexible Time Schedule in
Employees Health and the Environment
By Ayna Claiza Engracia
De La Salle University Manila

Research Room 6 (M409)


Facilitator: Dr. Robert Charles Capistrano

1:20 – 1:40
Using ISO 45001 Occupational Health and Safety Management System Training to
Maintain Sustainability on Operations
By Crystal Dana Pike

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GBC 2019 12th Global Business Conference
Conference Proceedings ISSN 2362-7832
De La Salle-College of Saint Benilde
March 2, 2019
De La Salle University Manila

1:40 – 2:00
Bullying on Social Media: Sufficiency of Legal Remedies for Student Protection in the Philippines
By Dr. Jocelyn Cruz, John Edwardson Adan, Ivan Lawrence Aguilar, Evelyn Cabaces, Aaron
Niccolo Condeno, Jhariz Amanda Garcia, Rongrong Xie and Thant Zin
De La Salle University Manila

2:00 – 2:20
Moderating Effect of Gadget-Loving towards ICT/IS Adoption Intention
By Raymund Dimaranan
De La Salle University Manila

2:20 – 2:40
Biking on the Road to Sustainability: The Role of the Commercial Private Sector in
Shaping and Sustaining Bicycle Laws and Regulations
By Serina Mara Alonzo and Atty. Jan Raphael Salud
De La Salle University Manila

2:40 – 3:00 B R E A K

3:00 – 3:20
Building Competitive Advantage through Digitization of Banking Process
By Jermyn Rogelle Batario and Shaira Hernandez
De La Salle University Manila

3:20 – 3:40
Green Marketing: A Tool for Strengthening Customer Loyalty in Quick-Service Restaurants
By Nina Ricci Sogue and Leo B. Malagar
De La Salle University Manila

3:40 – 4:00
The Level of Behavioral Competencies of Benildean Generation Z: Impact on Future Philippine Corporate
Setting
By Nicky Araza, Reyni Rose Villar and Ariel Pineda
De La Salle-College of Saint Benilde Manila

4:00 – 4:20
In Search for the Ideal Employer: Factors Affecting Student’s Job Application Intentions
By Ma. Elizabeth G. Cubacub and Winona Angela Buendia
De La Salle University Manila

4:20 – 4:40
Ethics in Finance: Chartered Financial Analysts (CFA) Ethics Curriculum, Standard 1
By Dr. Junette Perez
De La Salle University Manila

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GBC 2019 12th Global Business Conference
Conference Proceedings ISSN 2362-7832
De La Salle-College of Saint Benilde
March 2, 2019

4:40 – 5:00
A Sustainable Client Loyalty Business Model Designed for the Life Insurance and Investments Agent
By Melvin Luis
De La Salle University Manila

5:00 – 5:20
The Contribution of Management Information System on Innovative Performance: The
Case of MMI Company
By Dr. Harvey Ong
De La Salle University Manila

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GBC 2019 12th Global Business Conference
Conference Proceedings ISSN 2362-7832
De La Salle-College of Saint Benilde
March 2, 2019

Table of Contents
A Critical Realists Approach to Seafarer’s Non-Compliance to Standards On-board Ship
Rayan Dui…………………………………………………………………………………………………………...19

Assessment of the Sustainable Development Attributes of Western Philippines University


Cecilia Malolos…………………………………………………………………………………….……21

An Examination of Undergraduate Business Students’ Motivation towards Venture Creation


Gemma Reyes…………………………………………………………………………………………………….....22

Biking on the Road to Sustainability: The role of the commercial private sector in shaping and
sustaining bicycle laws and regulations
Atty. Jan Raphael Salud and Serina Mara Alonzo……………………………………………………………..35

Bullying on Social Media: Sufficiency of Legal Remedies for Student Protection in the Philippines
Atty. Jocelyn Cruz, John Edwardson Adan, Ivan Lawrence Aguilar, Evelyn Cabaces, Aaron Niccolo
Condeno, Jhariz Amanda Garcia, Rongrong Xie and Thant Zin …………………………………………....38

Ethics in Finance: Chartered Financial Analysts (CFA) Ethics Curriculum, Standard 1


Dr. Junette A. Perez……………………………………………………………………………………………..…41

Facebook Advertising and Repurchase Intention of Selected Customers of Four Leaf Spa
Edralin Lim……………………………………………………………………………………………………….…47

Focus: H&M’s Sustainability Efforts as Seen by Millennials


Julie Balarbar………………………………………………………………………………………………………59

FOSTERING EMPLOYEE HAPPINESS: PERSONAL GROWTH PROGRAMS AS


FOUNDATION FOR EMPLOYEE PERFORMANCE AND PRODUCTIVITY
Miguel Paolo Paredes……………………………………………………………………………………………..70

Green Marketing Strategies Applied in Salikneta Farm: Towards Global Environment Sustainability
Dr. Francia Santos, Christopher John Manalad, Francis Ian Maclang and Shahn De Leon……………81

Go Go Going Green: A Look at Green Marketing Initiatives


Rajan Sadhwani and Jose Luis Legaspi…………………………………………………………………..….….98

Going global by being local: A research study on ABC’s bid to globalization through local culture
integration
John Michael Hernandez and Leo B. Malagar……………………………………………………….…..…….99

Green Innovation Factors and Practices in Pampanga: For Profit or for Environmental Protection?
Joy Anne Evaristo……………………………………………………………………………………..……………111

16
GBC 2019 12th Global Business Conference
Conference Proceedings ISSN 2362-7832
De La Salle-College of Saint Benilde
March 2, 2019
Green Marketing: A Tool for Strengthening Customer Loyalty in Quick-Service Restaurants
Nina Ricci Sogue and Leo B. Malagar……………………………………………………….………………..126

Integrating Theory and Practice on Sustainability Marketing: A Look at the Asia Pacific Tambuli
Awards
Leah May Tacuel………………………………………………………………………………………….……….127

Internal Branding Practices and Organizational Citizenship Behavior in a Large Food Processing
Company: Implications for an Employee-Driven Sustainability Performance
Raymond Paderna, Miguel Carlos Mendoza, Luis Antonio Orosa and Jose Gabriel Recto……….……144

Laguna Consumers’ Buying Tendencies towards HMO


Joseph Emil Santos, Carlo Miguel Saavedra and Camille Bernadette Alina…………………….………..145

Let my e-wallet pay: The role of user satisfaction and convenience on e-wallet use
Carlo Miguel Saavedra, Joseph Emil Santos and Jose Luis Liongson……………………..……………….147

Marketing and Sustainable Business (Retail)


Benison Cu…………………………………………………………………………………..………………………157

Marketing Strategies of the Furniture Businesses in Pangasinan: Innovating a Traditional Industry


of Pangasinan
Dr. Jeanica Joson………………………………………………………………………………..…………………170

Moderating Effect of Gadget Loving towards ICT/IS Adoption Intention


Raymund Dimaranan ……………………………………………………………………………………..……….171

Security of Tenure versus Management Prerogatives: A Study on the Legal Implications of Security
of Tenure which Affects the Sustainability of the Global Enterprise
Atty. John Evan Miguel……………………………………………………………………….....………………..172

Self-Assessment of Sustainability of a Smallholder Mushroom Farm Business Venture in Marilao,


Bulacan: Using FAO SAFA FRAMEWORK
Virgilia Arispe………………………………………………………………………………..………………….....173

STRUCTURAL PERFORMANCE OF FISH MARKETING IN RURAL MUNICIPALITIES OF


OCCIDENTAL MINDORO, PHILIPPINES
Ryan Mark Ambong and Dr. Liberty Mendaña…………………………………………………..……….……191

Sustainable Business Management: A Study on Employee Retention Strategies


Khadija Cajayon and Leo B. Malagar…………………………………………………………….……....….…201

The Connects and Disconnects of Regulatory Agencies’ Implementation of Electronic Compliance


System: A Case Study
Dr. Hilario Caraan……………………………………………………………………………………..………….203

17
GBC 2019 12th Global Business Conference
Conference Proceedings ISSN 2362-7832
De La Salle-College of Saint Benilde
March 2, 2019
The Contribution of Management Information System on Innovative Performance: The Case of
MMI Company
Dr. Harvey Ong…………………………………………………………………………………..…………….…..216

The Entrepreneurial Intention of Select DLSU Entrepreneurship Students Applying the Theory of
Planned Behavior
Roderick Pangindian……………………………………………………………………………………..…..……231

The Impact of Economic, Environmental, and Social Dimensions of Sustainability Reporting On


Profitability, Liquidity, and Solvency of Selected ASEAN Real Estate and Construction Companies
Julia Mari Gumiran, Jason Robert Mendoza, Kim Kathlyn Pua,
Odlanyer Ramirez and Dr. Marivic Manalo………………………………………………………...………....245

The Impact of Perceptions of Corporate Social Responsibility and the Existence of Labor
Contractualization on Job Satisfaction of Employees in Selected Companies in the Food and
Carlo Miguel Isip, Mariklaire Manalastas, Jason Cyrus Polloso,
Franchesca Reside and Jerwin Tubay………………………………………………………..…………………246

The Sustainability Factor of Telecommuting as an Employee Benefit Used as a Business Management


Strategy Beverage Industry in Metro Manila
Jean Orillos………………………………………………………………………………………..………………..247

Utilization of Application Software in the Implementation of Sustainable Customer Loyalty Program


Lovielyn Krystel Asinas……………………………………………………………………..……………………..248

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GBC 2019 12th Global Business Conference
Conference Proceedings ISSN 2362-7832
De La Salle-College of Saint Benilde
March 2, 2019

JGB 1217
A Critical Realists Approach Seafarer’s Non-Compliance to
Standards Onboard Ship
Rayan Dui
De La Salle University, Manila
rayan_dui@yahoo.com

Abstract
Filipino seafarers have become a vital component of the country’s Overseas Filipino worker
(OFW). Remittances from all OFW are a major source of US dollar earnings, contribute
significantly to stabilizing the balance of payments, prevent foreign exchange instability, and serve
as a buffer against drastic devaluations of the peso which could lead to inflation. Politicians refer
to OFWs, including seafarers, as the “new heroes” in acknowledgment of their economic role
(Amante, 2004). The objective of this paper is to explain the causal mechanisms that resulted in
the non-compliance of seafarers in following simple instructions in the line of their work resulting
in unfortunate situations such as accidents. This paper is more importantly directed to the different
manning agencies and their foreign principals. Much as they are focused on company profits and
revenues, making seafarers competitive as far as their skills are concerned, they are also
responsible for keeping their seafarers safe and protected while they are onboard. This is their
fundamental role and goal before they can even proceed to make enhancements and improvements
to company processes and structures. The phenomenon that is being observed is why Filipino
seafarers, in spite of extensive training and in-house programs meant to ensure that seafarers will
follow and comply with the standards set upon by the International Maritime Organization
governing body, numerous accidents are still being experienced because of the non-compliance of
these procedures. Through this research, the researcher is able to contribute by informing and
educating the proper authorities about the relevance of addressing non-compliance of seafarers in
the prevention of maritime accidents. Seafarers must be sufficiently educated, trained to operate,
and must follow procedures and guidelines. A careful study of the accident reports reveals that
85% of all accidents are either directly initiated by human error or are associated with human error
by means of inappropriate human response (Ziarati, 2006). This is in line with the findings of a
recent paper (IMO, 2005) that 80% of accidents at sea are caused by human error. In any study of
accidents or claims, we find a major cause to be "Lack of abiding by the procedures" and or "Non-
compliance" with various regulatory requirements. Once you study the accident investigation
reports; a proximate cause would be called upon as "Lack of Competence or Experience". The
critical realist philosophy will be used by the author in describing the phenomenon that is being
observed. According to Bhaskar (1989), his argument is that as researchers we will only be able
to understand what is going on in the social world if we understand the social structures that have

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GBC 2019 12th Global Business Conference
Conference Proceedings ISSN 2362-7832
De La Salle-College of Saint Benilde
March 2, 2019
given rise to the phenomena that we are trying to understand. He added that critical realism is a
philosophical tool for identifying causal mechanisms within a particular field of activity.
Keywords: Non-Compliance, Competency, Critical Realism, Seafarer, Maritime Accidents

20
GBC 2019 12th Global Business Conference
Conference Proceedings ISSN 2362-7832
De La Salle-College of Saint Benilde
March 2, 2019

JGB 1234
Assessment of the Sustainable Development Attributes of Western
Philippines University
Cecilia Malolos
De La Salle University, Manila & Western Philippines University
cecilia_malolos@dlsu.edu.ph

Abstract

Sustainable development (SD) is an issue that involves everyone living on planet Earth. Earth’s
resources have already shown evidence of depletion due to human beings’ activities that had
already exceeded Earth’s carrying capacity. Recognizing the significance of a university’s role in
promoting awareness and in educating the students and other stakeholders about SD, this paper
aimed at assessing a higher education institution’s SD initiatives based on the identified SD
attributes. Respondent-university for this paper is Western Philippines University (WPU) based in
the province of Palawan, Philippines. Data were taken from the responses of WPU key officials.
An assessment instrument comprising of four SD attributes: sustainability, stakeholders, internal
operations, and learning and growth, was utilized to gather data for this study. Spearman rank
correlation coefficient was utilized to test the relationships of variables. Findings revealed that
WPU has a high level of performance towards its sustainability, how they deal with the
stakeholders and efforts that promote learning and growth. Further, findings also revealed a
moderately positive relationship between SD aspects and the respondents’ age, designation and
years of service. Policy recommendations relating to the improvement of internal operations of
WPU are suggested in this paper. Future researches exploring the possibility of involving other
stakeholders of WPU, or of other Universities are also recommended.

Keywords: sustainable development, sustainable University, attributes of the green university,


sustainability

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JGB 1215
An Examination Undergraduate Business Students’ Motivation
Towards Venture Creation

Gemma U. Reyes
Assistant Professor
University of the Philippines Los Baños
gureyes@up.edu.ph

Abstract

Youth entrepreneurship has been considered as one of the solutions to the problem of global
unemployment. Many universities worldwide have offered entrepreneurship and entrepreneurial
management courses to encourage young people to put up their own business and contribute to
employment generation. Various researches have been made on entrepreneurial intention which is
believed to be the best predictor of entrepreneurial behavior. While there are already numerous
studies on the impact of motivation on employee behavior in general, few have been done on their
effect on entrepreneurial decision-making, particularly among the youth. This paper tried to fill
that gap. Specifically, it aimed to answer the following questions: a) what are the motivations of
young people in venturing into business? b) Are the motivations of males and females differ with
regard to putting up a business? And c) Does sex influence the impact of motivations on
entrepreneurial intention? Knowing the entrepreneurial motivations of the students and whether
there are differences between males and females can help those teaching entrepreneurship courses
modify their approach to cater to the specific motivations and gender differences of the students.
To answer the objectives, this study used a causal survey design with first-year business students
of a state university as respondents. It was deemed appropriate since they are most likely inclined
towards entrepreneurship based on the choice of their course. A Likert-type questionnaire was
administered to 94 out of a total of 97 first-year business students during the first semester of the
academic year 2018-2019. Based on a review of the literature, four motivational factors were
chosen as the explanatory variables namely: extrinsic motivation, intrinsic motivation, autonomy,
and altruism. Using SmartPLS 3.0, these predictors were regressed against the students'
entrepreneurial intention which is the dependent variable. The same software was used to see if
sex had a moderating effect on the impact of each of the motivational factors on entrepreneurial
intention. To check whether there were differences in the motivations of males and females, a test
of independence was conducted using SPSS 20. Of the 94 respondents, 61 were female and 33
were males. The test of independence did not show any significant differences in the motivations
of males and females. Results of the partial least squares structural equations modeling showed
that only autonomy and altruism had a significant effect on entrepreneurial intention and that
gender had no moderating effect on the impact of the motivational factors on entrepreneurial
intention. From the perspective of social entrepreneurship, it is heartening to note that these young
people are also motivated by altruism. Since they will be the future business leaders, it gives us
reason to hope that businesses may be transformed into agents for inclusive growth and not simply
an instrument to serve the interest of a few.

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Keywords: extrinsic and intrinsic motivation, autonomy, altruism, entrepreneurial intention

Introduction

In recent years, there has been a growing interest in entrepreneurship owing primarily on its
perceived role in sustaining economic growth and creating employment. Towards the latter part of
the last century many universities worldwide, including the Philippines, have been offering courses
on entrepreneurship and entrepreneurial management in order to encourage young people to put
up their own businesses and become employers who will generate employment. Even government
and non-government organizations have offered non-formal training on entrepreneurship to out of
school youth in the hope of reducing unemployment and its negative social consequences.
To have a greater understanding of the entrepreneurial process, researchers have tried to study
the factors affecting entrepreneurial intention which is said to be a good indicator of
entrepreneurial behavior (Ajzen, 1991; Bagozzi, Baumgartner and Yi, 1989). Among the
antecedents that have been examined are personality traits (Farrukh, Khan, Shahid Khan, Ravan
Ramzani, and Soladoye, 2017; Karabulut, 2016; Kumara and Kuman, 2010), education (Peterman
and Kennedy, 2003; Ismail, Zain and Zulihar, 2014; Remeikiene, Startiene and Dumciuviene,
2013) and structural support (Turker and Selcuk, 2009).
Numerous studies have also been conducted on the impact of motivations on employee
behavior in general but few have been done on their influence on the entrepreneurial decision.
According to Sanchez and Sahuquillo (2012), motivation is crucial in starting a business since it
is closely linked to the entrepreneur’s commitment to make the business idea a reality. Currently,
motivational studies among the youth, who can be considered potential entrepreneurs, are very
few. In my review of the literature, I found only one study that examined the impact of rural
students’ motivations on entrepreneurial intention (Purwana and Suhud 2018).
Shane, Locke, and Collins (2003) argued that understanding the motivations of people who
make entrepreneurial decisions is crucial in the development of entrepreneurship theory. The mere
presence of entrepreneurial opportunities does not guarantee that these will be exploited as Shane
and Venkataraman (2000) asserted. People need to have the willingness and ability to do so.
Motivational studies make a distinction between intrinsic motivation i.e. coming from within
the person and extrinsic motivation which is external to the person (Pinder, 2014; Ryan and Deci,
2000). Early motivational theories have already captured the concept of extrinsic and intrinsic
motivation without calling them as such. Maslow (1954) in his theory on the hierarchy of needs
has identified lower order needs such as physiological needs and security which correspond to
extrinsic motivation while higher order needs like self-esteem and self-actualization correspond to
intrinsic motivation. Hertzberg, Mausner and Snyderman (1959) through the two-factor theory
made a distinction between hygiene factors, those that are external to the person (salary, quality of
supervision and company policies) and motivators, those that a person can attribute to the work
itself or outcomes resulting from it such as recognition, achievement, and responsibility. The
hygiene factors and motivators may be analogous to extrinsic motivators and intrinsic motivators
respectively.
Various studies have tested for the influence of extrinsic and intrinsic motivations on venture
creation. Nascent and aspiring entrepreneurs were found to be extrinsically and intrinsically

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motivated (Choo and Wong, 2006; Bird, 1989; Volery, Doss, Mazzarol and Thein, 1997). Those
who were extrinsically motivated were after financial or other tangible rewards while those who
were intrinsically motivated were looking for greater responsibility for the business venture.
Studies conducted among nascent entrepreneurs also revealed that autonomy or independence
is the foremost motivation in venture creation (Blais and Toulouse, 1990; Feldman and Bolino,
2000; Carter, Gartner, Shaver and Gatewood, 2003). Autonomy is a subset of intrinsic motivation
which pertains to the desire to decide for oneself, to be in control. It is also associated with freedom
both in the negative and positive sense (Van Gelderen, Thurik, and Bosma, 2003). They found
out that some nascent entrepreneurs are driven to put up their own business because there are
unsatisfied with their boss or company rules (negative sense). Others, on the other hand, find that
having their own business allows them to pursue their own goals and work according to their own
values or they do so because they need to have a lead role, to be in charge (positive sense).
With the phenomenon of social entrepreneurs who set up businesses to pursue a social
objective more than economic profit, altruism is being considered also as a possible motivating
factor for venture creation. The concept of altruism, the desire to benefit others, has been around
since the beginning of humanity as evidenced by the numerous charity organizations worldwide
through the centuries. However, it's a role in venture creation particularly among the youth, is
being examined only recently. Purwana and Suhud (2018) conducted a study on the effect of
motivation on entrepreneurial intention among vocational students and found out that public
service (altruism) had a significant effect on entrepreneurial intention. Studies conducted by
Pauline, Ferguson, Schattke, and Jost (2014), Eagly (2009) and Brunel and Nelson (2000) suggest
that there may be differences between males and females in terms of altruism. Their studies
revealed that women respond more to charitable appeals to help others.
According to Thompson (2010), the entrepreneurial intention is a person’s commitment to start
a new business with plans to do so in the future. According to Krueger, Reilly, and Carsrud (2000),
entrepreneurial activity is an intentionally planned behavior since it involves preparing business
plans. As such intentionality can be a predictor of entrepreneurial behavior.
Based on the literature discussed, this study had a three-fold objective. First, it aimed to find
out the main motivations of young people in their intention to put up their own business. Second,
it tried to determine whether there were motivational differences between males and females.
Finally, it examined whether gender moderated the impact of the different motivations on
entrepreneurial intention. More specifically, it aimed to answer the following questions: a) What
are the motivations of young people in venturing into business? b) Are the motivations of males
and females differ with regard to putting up a business? And c) Does gender influence the impact
of motivations on entrepreneurial intention?
The study focused on business students who may be considered potential entrepreneurs.
Knowing the entrepreneurial motivations of students can aid those handling entrepreneurship
courses in the way they direct them towards the operationalization of their entrepreneurial
intentions. Examining whether there are motivational differences between male and female as well
as whether gender has a moderating influence on the impact of the different motivations on
entrepreneurial intention can signal to entrepreneurship educators whether there is a need to be
gender specific in their approach to teaching and promoting entrepreneurship.

Conceptual Framework

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The conceptual framework (Figure 1) was based on a literature survey on the most prominent
motivational factors related to venture creation. It builds on the model of Choo and Wong (2006)
which included three factors: extrinsic motivation (EM), intrinsic motivation (IM) and autonomy
(AU). While their model was tested on retired military officers, I decided to focus on
undergraduate business students who may be presumed to already have some intentions of
venturing into business. I also included altruism (AU) as an additional variable since my chosen
respondents belong to the Generation Z, who is believed to have a more developed social
conscience and are said to be more entrepreneurial (Grayson, McLaren and Spitzeck, 2014). As
shown in Figure 1, the four motivational factors are the independent variables while the
entrepreneurial intention (EI) of students is the dependent variable. The study also tested if gender
(G) has a moderating influence on the effect of motivations on entrepreneurial intention.

Based on the review of the literature and conceptual framework above, the following
relations are hypothesized:
H1: Extrinsic motivation has a positive effect on entrepreneurial intention.
H2: Intrinsic motivation has a positive effect on entrepreneurial intention.
H3: Desire for autonomy has a positive effect on entrepreneurial intention.
H4: Altruism has a positive effect on entrepreneurial intention.
H5: Gender moderates the influence of extrinsic motivation on entrepreneurial intention.
H6: Gender moderates the impact of intrinsic motivation on entrepreneurial intention.
H7: Gender moderates the impact of the desire for autonomy on entrepreneurial intention.
H8: Gender moderates the impact of altruism on entrepreneurial intention.

Methodology

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This research followed a causal and cross-sectional research design. Using appropriate
statistical tools it tried to measure first, whether the specific motivations are associated with
entrepreneurial intentions. Second, after finding out that there is a relationship between the
variables, the study investigated the predictive power of motivations on entrepreneurial intention.
Furthermore, it tried to find out if there are relevant differences in the motivations of males and
females and whether gender has a moderating effect on the impact of motivations on
entrepreneurial intention.
The study used a quantitative research method by collecting numeric data that can be subjected
to statistical analysis which could potentially explain the variation in the dependent variable based
on the behavior of the independent variables. To initially gauge whether there is a relationship
between each of the motivating variables and entrepreneurial intention, the Pearson correlation
was conducted using SPSS 20. Test of independence using SPSS 20 was conducted to see whether
there are motivational differences between male and female university students. To test the
predictive power of each of the motivating variables on entrepreneurial intention, partial least
squares structural modeling (PLS-SEM) was used. My version of SPSS does not include AMOS
which could do structural equations modeling. Hence, I opted for the trial version of SmartPLS
3.0 which is an adequate substitute for AMOS.
Since the study was done primarily to aid the entrepreneurship program of a specific state
university, the respondents for this research were chosen from the business students of this
particular university who were taking up an introductory entrepreneurship course during the first
semester of the academic year 2018 to 2019. Following the revised curriculum, this course is
offered only to first-year business students who at the time of the research were 97 in all. Since
the total population is not large, it was decided that a census be taken instead of trying to get a
representative sample. Of the 97 students, 94 were able to participate in the study.
To measure the motivations and entrepreneurial intention of the students, a Likert-type survey
instrument was developed. The students were asked to express their agreement or disagreement on
each of the statements on a scale of 1 (strongly disagree) to 7 (strongly agree). For the measures
on extrinsic motivation, intrinsic motivation and autonomy, the statements were adapted from the
studies of Choo and Wong (2006) and Sanchez and Sahuquillo (2012). For the altruism and
entrepreneurial intention scale, statements were patterned from the work of Purwana and Suhud
(2018).
There were initially fifteen items in the Likert-type questionnaire, three questions for each of
the variables being tested. A pre-test was done to check the reliability of the items. The pre-test
scores showed that all items were reliable and no further changes were made on the questionnaire.
The instrument was then administered to the large class with a total of 97 students, three of whom
were absent. Hence there were only 94 respondents in total. Those who participated during the
pre-test were asked to leave the class earlier since they have already answered the questionnaire.
After the final survey results were tested again for construct reliability and validity, one item
each was removed from the extrinsic and intrinsic motivation variables to ensure that all variables
meet the acceptable reliability score of 0.70 which is the generally acceptable Cronbach’s alpha
(Peterson, 1994). The Likert-scale items were thus reduced to 13 items as shown in Table 1.

Table 1. Final Motivational and Entrepreneurial Intention Scale


Item No. Dimension
Entrepreneurial Intention

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1 I plan to put up my own business in the future
6 Having my own business is favorable for me
11 I prefer to have my own business than to be employed
Extrinsic Motivation
2 I want to earn more money
12 I want to have a comfortable life
Intrinsic Motivation
3 I want to develop my creativity
13 I want to follow my passion
Desire for Autonomy
4 I want to work at my own time
9 I want to be my own boss
14 I want to work at a location of my choice
Altruism
5 I want to produce products that do not harm the environment
10 I want to provide products and services that will benefit the poor
15 I want to create jobs for other people

For the socio-demographic profile, the students were simply asked to indicate their gender.
This information was asked to test whether gender had a moderating effect on the impact of the
different motivations on entrepreneurial intention.

Discussion of Results

Descriptive statistics and test of independence (α=5%) were computed using SPSS 20. There
were a total of 94 students surveyed representing 97 percent of the whole freshman batch taking
up a business course. Of these, the majority are female, 61 (65%) and 31 (35%) are males. Refer
to Table 2 for the summary.

Table 2. Descriptive Statistics


Standard
Mean Deviation T-statistics P-value
Entrepreneurial Intention -0.936 0.352
Female (n=61) 5.848 1.2228
Male (n=33) 6.082 1.0267
Extrinsic Motivation -0.767 0.445
Female (n=61) 6.574 1.0678
Male (n=33) 6.727 0.5741
Intrinsic Motivation 0.337 0.737
Female (n=61) 6.508 1.0587
Male (n=33) 6.576 0.6139
Desire for Autonomy -1.312 0.193
Female (n=61) 6.338 1.11

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Male (n=33) 6.606 0.5172
Altruism 0.035 0.972
Female (n=61) 6.498 1.1288
Male (n=33) 6.491 0.6578
Although the data looks skewed in favor of females and thus might raise an issue on
representativeness, Dickinson, Adelson, and Owen, (2012) argued that even if the sample is not
balanced it may still be representative if it approximates the sexual distribution of the population.
Concepcion (2013) cited in his column in the Philippine Star, an international study on
entrepreneurship which showed that around seventy percent (70%) of business start-ups in the
Philippine were started by women. Hence, even if the focus of this research is on the total
population of freshmen students taking up an introductory entrepreneurship course in a specific
state university, it may also be said that this distribution of males and females may be
representative of the population of those start business in the country.
Looking at Table 2, the mean scores of males in all motivational factors are slightly higher
than females except in altruism where the females scored higher. However, these differences are
not significant as can be gleaned from the t-statistics which are all lower than 1.96 and p-values
greater than .05 which means that there is a more than 95% chance that there are no real differences
in the motivations and entrepreneurial intentions between males and females. This could imply
that in terms of motivating university students towards considering venturing into business, the
approach need not be gender specific.
Using SmartPLS 3.0, the construct reliability and validity test yielded a Cronbach’s alpha
greater than 0.70 for all the variables. For the item loadings, all the values are above the acceptable
score of 0.50 (Kock, 2015) which satisfies the requirements for factor analysis. There are no
multicollinearity issues. As can be seen from the VIF, all scores are within the acceptable range of
1 to 10. Table 3 summarizes the various results.

Table 3. Cronbach’s Alpha, Factor Loadings and Collinearity Statistics (VIF)


Item Cronbach’s Variable Inflation
Alpha Factor Loading Factor(VIF)
Entrepreneurial
Intention 0.864
EI1 0.859 2.116
EI2 0.909 2.551
EI3 0.89 2.148
Extrinsic Motivation 0.836
EM1 0.939 2.063
EM3 0.913 2.063
Intrinsic Motivation 0.724
IM1 0.91 1.474
IM3 0.857 1.474
Desire for Autonomy 0.806
AU1 0.88 1.934
AU2 0.888 1.843

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AU3 0.767 1.586
Altruism 0.91
AL1 0.928 3.647
AL2 0.913 3.197
AL3 0.92 2.687
As an initial test to see if there is a relationship between each of the different motivational
variables and entrepreneurial intentions, a Pearson was conducted using SPSS 20. Upon verifying
that all of the motivational variables are correlated with entrepreneurial intention, the model was
then regressed using SmartPLS 3.0. The results are shown in Table 4, Table 5 and Figure 2.

Table 4. Pearson Correlation Coefficients


Relationship
Rho
Extrinsic Motivation & Entrepreneurial Intention 0.493***
Intrinsic Motivation & Entrepreneurial Intention 0.526***
Desire for Autonomy & Entrepreneurial Intention 0.687***
Altruism & Entrepreneurial Intention 0.657***
*** Correlation is significant at the 1% level (two-tailed)

Based on the t-statistics and p-values in Table 5, H3 (desire for autonomy) was supported. This
result is consistent with studies of Blais and Toulouse (1990), Feldman and Bolino (2000), Carter
et al. (2003) and Van Gelderen et al. (2003). It is quite logical to expect that those who put up their
own business would want to be in control and make their own decisions.

Table 5. T-tests of Path Coefficients


Original Sample Standard T P
Sample Mean Deviation Statistics Values Decision
Reject
AL_ -> EI_ 0.4588 0.4320 0.1507 3.045 0.002 Null
Reject
AU_ -> EI_ 0.6619 0.6959 0.1873 3.534 0.000 Null
Accept
EM_ -> EI_ -0.2251 -0.1936 0.2124 1.060 0.290 Null
Accept
IM__ -> EI_ -0.0304 -0.0361 0.1537 0.198 0.843 Null
Moderating Effect 1 -> Accept
EI_ -0.0689 -0.0687 0.1402 0.492 0.623 Null
Moderating Effect 2 -> Accept
EI_ -0.0251 0.0016 0.1792 0.140 0.889 Null
Moderating Effect 3 -> Accept
EI_ 0.2860 0.2945 0.2356 1.214 0.225 Null
Moderating Effect 4 -> Accept
EI_ 0.0273 -0.0072 0.1575 0.173 0.862 Null

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Altruism (H4) was also supported. This is consistent with the findings of Purwana and Suhud
(2018) who studied the impact of motivations on entrepreneurial intention among rural vocational
students. Their easy access to social media which readily exposes them to the suffering of others
might have awakened in these young people the desire to contribute in a more stable way through
responsible and sustainable business. This desire could also be fueled by the unsatisfactory way
that traditional businesses have performed in terms of protecting its stakeholders. They know that
the future is in their hands and they can turn the traditional business around by creating more social
enterprises. This study corroborates the statement of Grayson et al. (2014) that Generation Z is
more socially conscious.
Contrary to the previous studies (Choo and Wong, 2006; Bird, 1989; Volery et al., 1997), the
relationship between extrinsic and intrinsic motivations was negative and insignificant. This came
initially as a surprise but after serious thought, the results may actually make sense. It must be
kept in mind that previous studies on extrinsic and intrinsic motivations were conducted mostly
among nascent entrepreneurs who have been previously employed. Having been employed, their
decision to put up their own business must have come from the realization that mere employment
will not allow them to achieve their goals. Thus, they break away from their employment to start
their own business. Most university students, on the other hand, have no employment experience
yet. Those who are extrinsically and intrinsically motivated may be thinking that a good college
education can secure them a good job which can already provide them with ample tangible rewards
and room for personal growth. Thus, those who are motivated intrinsically or extrinsically may
not find putting up a business attractive at the moment.
As can be gleaned from Table 5, gender had no moderating effect on the impact of the different
motivational factors on entrepreneurial intention. All the t-statistics are below 1.96 and p-values
are all higher than .05 which means that there is a higher than 95% chance that gender does not
moderate the impact of motivational factors on entrepreneurial intention.
Even if autonomy and altruism were the only significant predictors in the model, these two
could already predict almost 60% of the students’ entrepreneurial intention based on the R 2 of
0.589 (See Figure 2).

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Conclusion

In the context of social entrepreneurship, it is heartening to note that this study has in some
way contributed to the few types of research on the impact of motivation particularly altruism on
entrepreneurial intention among the young people. Since the youth of today, who manifest greater
social concern, will be at the helm of businesses in the future, there is a reason to hope that
businesses could be transformed into a vehicle towards advancing inclusivity and sustainability.
Although the focus of the study was on intentionality, more potential than actual, the results can
aid those teaching entrepreneurship courses to promote social enterprises since these young people
are highly motivated to help others.

Limitations and Recommendation for Future Research

The study was directed primarily to those who are handling entrepreneurship courses in a
particular state university so that they can better understand how motivations affect entrepreneurial
intention and help them guide the business students accordingly. With this in mind, the study was
conducted only among business students of a particular state university who are taking up an
introductory entrepreneurship course during the first semester of the academic year 2018-2019. As
such, results of the study may only be applicable to these set of students. Furthermore, at the time
of the research, the majority (65%) of the respondents were female. Thus the study may reflect
more the motivations of female business students than male business students.
Although the proposed model was able to explain sixty percent of the variation in
entrepreneurial intention, there still remains forty percent that needs to be explained. Researchers
are encouraged to examine variables found in other motivational theories like Vroom’s (1964)
Expectancy Theory which takes into consideration the dynamics of effort, performance, rewards,
and goals. It would also be interesting to study the potential factors that could demotivate the
students from actually putting up their business so that these can be avoided or minimized.
Implications to Global Business

Harnessing Generation Z’s greater social awareness and their motivation to positively
contribute to society through business can pave the way for a more inclusive and sustainable
economic growth which is a prime goal of the United Nations. It is hoped that this study can spur
similar researches not only at the university level but also the regional or national levels worldwide
and across various age groups in order to promote even greater understanding specifically of the
role of altruism on entrepreneurship and to leverage on the findings to encourage more people to
create more sustainable enterprises.

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Kumara, S. V., & Kumar, Y. V. (2010). Examining entrepreneurial competencies and their
relationship to self-employment intentions among engineering students: A case study from
India. Industry and Higher Education, 24(4), 269-278.

Maslow, A. H. (1954). Motivation and personality. New York: Harper & Row.

Paulin, M., Ferguson, R. J., Schattke, K., & Jost, N. (2014). Millennials, social media, prosocial
emotions, and charitable causes: The paradox of gender differences. Journal of Nonprofit &
Public Sector Marketing, 26(4), 335-353.

Peterman, N. E., & Kennedy, J. (2003). Enterprise education: Influencing students’ perceptions
of entrepreneurship. Entrepreneurship theory and practice, 28(2), 129-144.

Peterson, R.A. (1994). A meta-analysis of Cronbach’s coefficient alpha. Journal of Consumer


Research, 21, 381-391.

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Purwana, D., & Suhud, U. (2018). Investigating the effect of motivation on entrepreneurial
intention: Three different approaches. Problems and Perspectives in Management,
https://doi.org/10.21511/ppm.16(2).2018.18

Remeikiene, R., Startiene, G., & Dumciuviene, D. (2013). Explaining entrepreneurial the
intention of university students: The role of entrepreneurial education. Paper presented at the
Management, Knowledge, and Learning International Conference.

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https://pdfs.semanticscholar.org/e3f4/a88df74cf45148267665773d8bb05020a3b0.pdf

Ryan, R. M., & Deci, E. L. (2000). Intrinsic and extrinsic motivations: Classic definitions and
new directions. Contemporary educational psychology, 25(1), 54-67.

Sánchez, V. B., & Sahuquillo, C. A. (2012). Entrepreneurial behavior: Impact of motivation


factors on decision to create a new venture. Investigaciones Europeas de Dirección y
Economía de la Empresa, 18(2), 132-138.

Shane, S., Locke, E. A., & Collins, C. J. (2003). Entrepreneurial motivation. Human Resource
Management Review, 13(2), 257-279.

Shane, S., & Venkataraman, S. (2000). The promise of entrepreneurship as a field of


research. Academy of Management Review, 25(1), 217-226.

Thompson, E. R. (2009). Individual entrepreneurial intent: Construct clarification and


development of an internationally reliable metric. Entrepreneurship Theory and
Practice, 33(3), 669-694.

Turker, D., & Sonmez Selçuk, S. (2009). Which factors affect the entrepreneurial intention of
university students? Journal of European industrial training, 33(2), 142-159.

Van Gelderen, M., Thurik, R., & Bosma, N. (2006). Success and risk factors in the pre-startup
phase. Small Business Economics, 26(4), 319-335.

Volery, T., Doss, N., Mazzarol, T., & Thein, V. (1997). Triggers and barriers affecting
entrepreneurial intentionality: The case of Western Australian Nascent
Entrepreneurs. Journal of Enterprising Culture, 11(03), 273-291.

Vroom, V. H. (1964). Work and motivation. New York: John Willey & Sons.

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JGB 1276
Biking on the Road to Sustainability: The role of the
commercial private sector in shaping and sustaining bicycle
laws and regulations

Atty. Jan Raphael R. Salud


Vice Chair, Commercial Law Department, RVRCOB
De La Salle University Manila

Serina Mara D. Alonzo


Student Researcher
De La Salle University, Manila

PURPOSE OF THE STUDY


Government impact on bicycle-related projects and advocacies for the past four years suggest
that the government can only do so much to help address the needs of the local bicycle
community. In contrast, it appears that the commercial private sector has better ways of helping
sustain the local bicycling community through its numerous bike-related events, projects, and
advocacies. In light of the Philippines’ local bicycle community’s push for bicycle laws and
regulations, this study has the following aims: (1) to take a closer look into the possible factors
preventing the passage of the eight legislative bills on cycling from 2015 to 2017; (2) to
determine the factors that drive private companies to support the cause of bicycling; and (3) to
propose ways on how the commercial private sector can influence the government's decision-
making and policies.

METHOD/DESIGN AND SAMPLE

In order to arrive at a conclusion on which provisions truly contribute to the Philippine


Development Plan of 2017-2022, we will conduct interviews with members of the cycling
community, industry leaders, and stakeholders using the provisions from the eight proposed
bills. We will do this by first presenting a comparative analysis of the bills, after which we
will be creating a summary of proposed solutions from those bills to survey our target
respondents on the following criteria: (1) is it useful? (2) Is it beneficial to bikers? (3) Is it
feasible? Based on the survey, we will be rank these projects based on rating

The questionnaire will include the following questions:


• Do you think there is enough funding for those projects?

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• How do you think the private sector can help?
• Can you suggest a more feasible solution, a more beneficial, or better-funded project or
initiative?

Currently, some particular sectors advocate for bicycle use. Ofo bike share and Bambike
ecotours offer bicycle rentals for traveling around Intramuros. Globe Telecom and Prulife of
UK host bicycle-advocacy events. Ayala Malls and SM Malls provide safeguarded bicycle
parking. With these examples, this study also aims to determine the factors that drive these
companies to continue supporting the cause of bicycling. These projects have made a huge
impact on people's lives by first, making road cycling safer and more accessible to those who
ride bikes instead of public transport, and second, raising awareness of the benefits of biking.

Not only do these projects help the government, but these also help the country economically.
In turn, this study also aims to present the commercial private sector’s business and
governmental impacts in bicycle-related project proposals, drawing insight from numerous
surveys done with businesses who have championed such projects. Altogether, private sectors
can help solve the problem by becoming agents for changing and influencing governmental
decision-making and policy. They can do this either by confrontation, participation or
anticipation.

VALUE TO MARKETING EDUCATION


Our research contains information which will be drawn mostly from primary sources to help us
answer our questions about the relevance of specific projects. Feedback from bikers and
stakeholders themselves will prove vital to our research as it would be necessary for us to look
into projects from the perspective of those who will need them the most. Additionally, we seek
to find out these private companies' primary intention for these projects. With that, examining
theories in marketing will be able to help us determine if said projects can actually help boost
those companies’ performance.

REFERENCES

Anderson, Alan. (2011). The cycling miscellany. London: Carlton Publishing Group.

Batalla, E. V. C., Torneo, A. R., and F. Magno. (2018). A survey of political interference patterns
and modalities in national roadworks in the Philippines. Asia-Pacific Social Science
Review, 18 (2) 2018, 267-281.

Cᴏɴꜱ ᴛ. (1987), art. II, Sec. 2.

Cᴏɴꜱ ᴛ. (1987), art. II, Sec. 15.

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Cᴏɴꜱ ᴛ. (1987), art. II, Sec. 16.

DENR-UNDP Environment and Natural Resources Capacity and Operations Enhancement,


Marikina Bikeways: Bicycle Planning and Evaluation Toolkit, December 20, 2008.

Exec. Order No. 774, § 9 (2008)

Gozun, Brian C. and M. D. V. Guillen. Towards a Sustainable Transportation Environment:


Case of “Pedicabs” and Cycling in the Philippines. Retrieved on November 16, 2017 from:
HTTP:// www.codatu.org/wp-content/uploads/Towards-a-sustainable-transportation-
environment.- The-case-of-Pedicabs-and-cycling-in-the-Philippines-Brian-GOZUN-Marie-
Danielle- GUILLEN.pdf
H.B. 174, 17th Cong. (2016) http://www.congress.gov.ph/legisdocs/basic_17/HB00174.pdf
(last visited July 18, 2017)

H.B. 263, 17th Cong. (2016) http://www.congress.gov.ph/legisdocs/basic_17/HB00263.pdf


(last visited July 18, 2017)

H.B. 1250, 17th Cong. (2016) http://www.congress.gov.ph/legisdocs/basic_17/HB01250.pdf


(last visited July 18, 2017)

H.B. 2276, 17th Cong. (2016) http://www.congress.gov.ph/legisdocs/basic_17/HB02276.pdf


(last visited July 18, 2017)

H.B. 3954, 17th Cong. (2016) http://www.congress.gov.ph/legisdocs/basic_17/HB03954.pdf


(last visited July 18, 2017)

H.B. 4212, 17th Cong. (2016) http://www.congress.gov.ph/legisdocs/basic_17/HB04212.pdf


(last visited July 18, 2017)
Oposa v. Factoran, G.R. No. 101083 (July 30, 1993)
Republic Act No. 7160, § 16 and 17(1991)
S.B. 647, 17th Cong. (2016) https://www.senate.gov.ph/lisdata/2413520772!.pdf (last visited
July 18, 2017).
S.B. 981, 17th Cong. (2016) https://www.senate.gov.ph/lisdata/2454921125!.pdf (last visited
July 18, 2017).
. (December 31, 1918). Crowds watched sports events on Rizal Day. The Manila Bulletin.
. (October 7, 1955). Bicycle race track proposed. The Manila Bulletin.

Keywords: sustainability, bicycle laws, private sector

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JGB 1274
Bullying on Social media: Sufficiency of Legal Remedies for
Student Protection in the Philippines
Jocelyn Cruz, John Edwardson Adan, Ivan Lawrence Aguilar, Evelyn Cabaces, Aaron
Niccolo Condeno, Jhariz Amanda Garcia, Rongrong Xie, Thant Zin
De La Salle University

EXTENDED ABSTRACT
Purpose of the Study:

The Philippines, a world leader in social media usage with 67 million users now faces emerging
student safety threats. A 2015 study by Stairway Foundation revealed that the incidence of social
media bullying in the country is caused by 80% of teenagers (aged 13-16) and 60% of children
(aged 7-are victims of such acts? This significantly increases every year, spiking up to 71% in
2016 (Philippine National Police as used by Tupas, 2017). Given these statistics and the
increasing number of cases, it is evident that social media bullying is a pressing issue that needs
to be addressed. At an extreme, it has caused deaths and other serious repercussions to both bullies
and victims.
This led to the passage of relevant local laws and policies mandated to control such acts
endangering students' safety in cyberspace and beyond. Some of the laws include the Anti-
Bullying Act of 2013 and the Cybercrime Prevention Act of 2012, among others. Thus, in this
undertaking, the researchers would like to address the following objectives:
a. to determine the prevalence of social media bullying in the Philippines;
b. to identify the effects of social media bullying on students;
c. to review relevant laws and programs adopted to safeguard students' safety against
social media bullying;
d. to assess the sufficiency of such laws on the control of social media bullying; and
e. to evaluate the implications of the existing laws on policies adopted by schools and
school systems to prevent social media bullying.

Method:
The study is anchored on a supposition that the incidence of cyberbullying is caused by students'
increased social media usage and should affect how legal remedies are made and delegated to
the government through its laws and the school through its rules. Furthermore, the government
and the schools are working together to control student’s usage. This leads to an understanding
that legal remedies should be reflected in laws and rules. In order to address the objectives,

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guided by the researchers’ framework, in-depth review, and analysis of statistics, scientific
researches on both Filipino and foreign subject, relevant laws, and jurisprudence about social
media bullying and its derivatives were done.

Results:
Prevalence of Cyberbullying in the Philippines
Gabiana (2017) proposed that bullying in all economic classes is prevalent, however, in a more
urban setting, cyberbullying emerges due to its accessibility in developed places. Majority of
these incidences happened on Facebook, one of the favored social media platform by children
and teenagers alike (Stairway Foundation, 2015; Gonzales, 2014). Furthermore, Watkins’
(2012) research showed that Filipino students are more vulnerable to cyberbullying at ages 13-
14 years old.
Multiple studies entailed varied results, although some are inconclusive, one fact still remains
that is cyberbullying continues to grow, peaking to 71% in 2016 (Tupas, 2017). A study by
Stairway Foundation in 2015 showed that of its 1286 student samples from multiple highly
urbanized cities, 80% of teenagers (aged 13-16) believed that bullying happened in the social
media. In a similar study by Kaspersky Lab (2016), 7 out of 10 students have seen cyberbullying
and 7% them participated in such activity. A study on various high schools showed that 85% of
their students experienced cyberbullying, with women being more attacked than others (Baronia-
Locson, 2011). On the contrary, Sanapo (2017) showed that cyberbullying incidences involving
men (both as bullies and bullied) are slightly higher than females in Western Visayas elementary
schools. She added that 40% of the time, children are victims while 24% admitted to starting
bullying others.

Effects of Cyberbullying in Filipino students


Extensive literature review shows that negative effects of cyberbullying in Filipinos and foreign
students can manifest into three areas: (1) physical and mental health, (2) academic performance,
and (3) societal implications. In an interview with Dr. Glenda Basubas, then president of the
Philippine Mental Health Association remarked that cyberbullying leaves ‘emotional scars that
stay for life' (Rallos, 2015). This statement affirmed cross-cultural researches which underscored
that cyberbullying is linked to incidences of suicidal ideations Furthermore, parents of children
who are cyberbullied express that their children felt lower self-esteem, depression, inactivity,
and anorexia according to Kaspersky Lab's research (2016).

Legislative Responses to Cyberbullying


Legislative responses were also reviewed and analyzed based on their sufficiency and related
issues. Cybercrime Prevention Act of 2012 and the Anti-Bullying Act of 2013 was assessed using
United Nation’s (2013) suggested contents for cybercrime legislation while the Revised Penal
Code and the Civil Code of the Philippines are seen on the perspective of related issues. The

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following insights were found (1) Cybercrime Prevention Act is aligned with the standards
suggested by the United Nation while the Anti-Bullying Act lacks, (2) the Revised Penal Code
is questioned whether to impose criminalization on young children, and (3) the application of
the Civil Code of the Philippines is difficult because a single act of cyberbullying might not
constitute the requirements for damages and its remedies are often too costly and time-
consuming.

Conclusion
As stated, the Philippines has already imposed various laws that protect its citizens particularly
the younger population from being at risk of cyberbullying. Despite this, incidences of
cyberbullying are still at high. Thus, laws are better served to be used as a guide on what
would be the consequences if an individual acts inappropriately. This leads to this study
concluding that proactive measures to eradicate cyberbullying are better than reactive ones like
the infusion of positive intervention as a crucial deterrent of bullying in social media. Being able
to prevent the deed through positive forms of discipline and intervention is better than finding
ways to criminalize the offenders.
The researchers further suggest that school stakeholders should take advantage of the discussed
laws and use them in formulating viable solutions to cyberbullying. These include the
stakeholder's creation of researches to address this problem and the inclusion of the study of
laws in bullying paired with social media literacy and digital citizenship curriculum

Value to Marketing Education:


Internet connectivity continues to change the landscape of marketing education. With internet
connectivity expanding, so is social media bullying. This study will help marketing practitioners
understand the needs of the younger generation – the casualties of cyberbullying.

References are available upon request

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JGB 1277
Ethics in Finance:
Chartered Financial Analysts (CFA) Ethics Curriculum, Standard 1

Perez, Junette A.
Financial Management Department, Dela Salle University
junette.perez@dlsu.edu.ph

Purpose of the Study

The study updates a prior paper on the CFA Program Curriculum on Ethical and
Professional Standards of the Chartered Financial Analyst Institute. It presents thoughts and
musings particular to the author. As a review, the CFA program aims to enhance the investment
profession worldwide through continuous and rigorous implementation among others of the CFA
Institute Standards of Practice Handbook thru the Code of Ethics and the Standards of Professional
Conduct.

Method/Design

The research design of the paper is descriptive in an article form.


Reflections and insights are presented in an order where the author assessed, perceived and adhered
to as ideal, fundamental and urgent.
Similarly, the paper reviews Ethics in the context of the CFA Code of Conduct, Standard 1.
Results and Discussions

Ethics is a discipline that requires systematizing, defending, and recommending guidelines


for the appropriate rules of conduct. Appropriate means either right or wrong conduct. 1 Nowadays
if one intends to review for the CFA Exams, several topics are designed to allow the candidate to
warrant a CFA Level 1 Certificate. These topics assess competence in the following core concepts:

Table 1: List of core topics for the CFA Level1.

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=20&ved=2ahUKEwjymM_azsTh
AhWVHHAKHd1eBvYQFjATegQIBxAC&url=https%3A%2F%2Fwww.cfainstitute.org%2F-
%2Fmedia%2Fdocuments%2Fstudy-session%2F2018-l1-
readings.ashx%3Fla%3Den%26hash%3DCF0C95241ECE0CB2F0A4F70F94D6CBA5E3E0FB00&usg=AO
vVaw2nkI36qTpFfi8juMgjTH2G.

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Source: https://www.cfainstitute.org/en/programs/cfa/curriculum/overview
Subjects: Weight%
Ethics 15
Quantitative Methods 10
Economics 10
Financial Reporting Analysis 15
Corporate Finance 10
Portfolio Management and Wealth Planning 6
Equity Investment 11
Fixed Income 11
Derivatives 6
Alternative Investments 6

Since then, the CFA Institute has placed huge importance on the impact of Ethics in the
CFA Level1 exams. With a passing rate of 70%, Table 1 presents weight allocation per topic.
Scores characterized to be within borderline are further evaluated using the candidate’s derived
scores in Ethics. Once a candidate received a failing mark in Ethics and does poorly in the other
categories of the exams, such a candidate’s chance for qualifying the CFA Level 1 is next to
impossible. 2

Usually Ethics is entwined with Morals. Several definitions connote that Ethics describes
one's character, ideals or virtues inherent to the person, to say the least, it relates to one's character
or disposition. Several commonly adhered to ethical conduct and behavior are illustrated in Table
2.

Table 2: Commonly adhered to conduct and behavior.


Codes of Conduct
Favorites: Faith in God. Humility. Excellence.

Don’t be ignorant, Acknowledge God’s Take care of yourself.


wisdom, never stop presence. Never forget
learning. to pray. Always put
God first.

2
https://www.investopedia.com/ask/answers/12/cfa-ethics-section.asp

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Treat others as Be thankful, be content. Be forgiving, move on. Live life to the fullest.
you want, the
golden rule.
Honesty. Think before you speak. Pay twice when you Feminism.
wronged people.
Help people in Embrace failures. Look Always be respectful. Ambition.
need, be kind to for ways to improve.
the environment.
Give second chances. Don’t be late, or waste It will all balance out.
time, avoid absences.

Integrity. Spend less than you Look forward to the Never forget home,
earn. future, smile though family.
your heart is aching.
Loyalty. Keep an open mind. Responsibility Examine what you
tolerate.
Budget your money Be yourself, know Be there when it
well. yourself. counts.
Keep promises and Accountability, pay it A few good friends
honor commitments. forward. are better than a lot of
fake ones.
Give more than what Listen. Being your own man.
you take.
Enjoy little things. See good in people. Have a breather.

These examples are inextricably bound with the nature of financial markets. As in any other
market, it relies heavily on a common bond of trust, reliability, and integrity among individuals in
the practice of a finance. Notable attributes have also stood out in the practice of the profession
and some of these include treating others as you would want to be treated, caring for others, having
faith in God and behaving with honesty and loyalty. To say the least, these attributes have also
been found to be meaningful to building and establishing long term relationships at work, at family
or at the community.

While the CFA Ethical Code of Conduct Standard 1 focuses on Professionalism, several
pieces of evidence prove that Professionalism conducts or demonstrates behavior during business
transactions. Among others, these work conduct are considered external dimensions of the

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professional as an individual. It may consist of the following depending the set of rules and policies
of the workplace:3
• Appearance
• Demeanor
• Reliability
• Competence
• Ethics
• Maintaining Your Poise
• Phone Etiquette
• Written Correspondence
• Organizational Skills
• Appearance

For instance, being a professional means arriving at work on time and maximizing time
while being at work. Professionalism is often considered an asset and is regarded highly at work
and in any other working organization. A professional person is decent and presentable in
appearance, the way he brings himself at work is appropriate, his clothing aligns and follows the
dress code suitable for the conduct of business. It is described to be not indecent neither too tight
nor too revealing. More or less, a professional is defined to be reliable and can be counted on to
deliver what is expected of him on time and with excellence. A professional demonstrates a
complete package of integrity at work and very important, a professional displays discipline in
words, written and spoken, and in thoughts.
Professionalism is the first ethical code of conduct and carries with it several compulsory
prescriptions in the form of standards based from the CFA Code of Conduct,
1A
I-A: Knowledge of the Law
I-B: Independence and Objectivity
I-C: Misrepresentation
I-D: Misconduct
For instance, Standard 1 is Knowledge of the Law which means and to quote:
https://www.investopedia.com/exam-guide/cfa-level-1/ethics-standards/standard-knowledge-of-
law.asp 4
“The code specifies that members and candidates must understand and comply
with all applicable laws, rules, and regulations (including the CFA Institute Code
of Ethics and Standards of Professional Conduct) of any government, regulatory

3
https://smallbusiness.chron.com/10-characteristics-professionalism-708.html
4
https://www.investopedia.com/exam-guide/cfa-level-1/ethics-standards/standard-knowledge-of-law.asp

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organization, licensing agency, or professional association governing their
professional activities.”
The code requires that in situations where conflicting issues and arguments are present, the
CFA demands that “members and candidates must not knowingly participate or assist in and must
disassociate from any violation of such laws, rules, or regulations”. (ibid)

What is the law? The law is generally perceived as


“a set of rules or principles dealing with a specific area of a legal system,
as tax law; a body of precepts held to express the divine will
especially as revealed in the Bible, rule or custom generally established in a parti
cular domain as the unwritten laws of good Sportsmanship or a way of life as the
Law of the Jungle, as the Law of Gravity or the Law of Supply and Demand”.

What is knowledge? 5 Knowledge implies


“Familiarity, awareness or understanding gained through experience or study like
the sum or range of what has been discovered or learned.”

If one has to have knowledge of the law, what does it imply? First, it assumes competence
in the application of the most basic laws. This means obedience and respect to laws among others
on traffic, tax, business permits, laws governing marriage, garbage, sanitation and health, voting
and several others.
However questions like “what if the applicable law is stricter than the code of conduct,
which must one follow?” The guideline is simple, one must apply the stricter law. And that
clarifies a conservative view on the application of laws per jurisdictions.

4. Value to Marketing and Business Education


What then is the value of this to marketing and business education? One can stipulate that
the consequence of a good behavior is equally as disruptive as the consequence of a bad behavior.
In hindsight, reflections on ethics and an ethical code of conduct such as the CFA Standard 1,
Professionalism states that one must know the laws and must also obey these laws. An ethical code
of conduct for one function transcends the boundaries of the other business functions. What I’m
saying is that an ethical employee in Finance is as equally indispensable as an ethical individual
in Marketing.
5. Conclusion:
In conclusion, an ethical code of conduct of a person in finance or in another business
discipline could be counted as a dependable and an unbiased estimator of the integrity of a service
to a counterparty. Despite a provision of a clear and simple code of conduct, individuals are still

5
https://www.thefreedictionary.com/law

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bound and act upon by what he or she believes as right or wrong or black or white. In effect,
Ethics can only be accountable to an extent, after all, it still depends on the person.
It is hoped that the application of the code of ethics and professional conduct will become
more than just a cast in a dream or a draft in a guide book, but in essence, a virtue which will
resonate as good, perfect and pleasing among everyone.

References/Acknowledgment
Ethical and Professional Standards and Quantitative Methods. CFA Program Curriculum (2013).
Level 1 volume 1, Standard 1.
1

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=20&ved=2ahUKEwjym
M_azsThAhWVHHAKHd1eBvYQFjATegQIBxAC&url=https%3A%2F%2Fwww.cfainstitute.org%2F-
%2Fmedia%2Fdocuments%2Fstudy-session%2F2018-l1-
readings.ashx%3Fla%3Den%26hash%3DCF0C95241ECE0CB2F0A4F70F94D6CBA5E3E0FB00&usg
=AOvVaw2nkI36qTpFfi8juMgjTH2G.
2 https://www.investopedia.com/ask/answers/12/cfa-ethics-section.asp
3 https://smallbusiness.chron.com/10-characteristics-professionalism-708.html
4 https://www.thefreedictionary.com/law
6 https://www.investopedia.com/exam-guide/cfa-level-1/ethics-standards/standard-knowledge-
of-law.asp

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JGB 1214
Facebook Advertising and Repurchase Intention of Selected
Customers of Four Leaf Spa
Edralin Lim
De La Salle University, Manila
edralin.lim@dlsu.edu.ph

Abstract
The spa industry has been growing tremendously around the globe. There is a
solid competition in the Philippine spa industry. Innumerable spas are ubiquitous in
Metro Manila. One of them is Four Leaf Spa. Unfortunately, Four Leaf’s market share
has not been increasing significantly. This study aims to examine the effect of Facebook
advertising on the repurchase intention of customers in Four Leaf Spa. The researcher
conducted an online survey consisting of 70 customers of Four Leaf Spa. The sample
represented the profile of the respondents based on gender, age, civil status, and income.
This research examined which measures of Facebook advertising affected customer
repurchase intention and multiple regression analysis to study the relationship. The
results of the study showed that advertising value, flow experience, web design quality,
and customer satisfaction positively affected the customer repurchase intention. This
study could provide information to the owner of Four Leaf Spa that effective Facebook
advertising could lead to high repurchase intentions. High repurchase intentions could
translate to high sales and more customers. The study could provide information to
services marketing that social media is important to promote the services offered by the
spa business to its customers. The study could also add to the existing literature about
Facebook advertising and customer repurchase intention.
Keywords: repurchase intention, Facebook advertising, customer satisfaction

Introduction
The spa industry has been growing tremendously around the globe. As per Schmidt
(2017), “In 2015, there were 120,000 spas worldwide, creating revenue of approximately $99
billion. From 2017 to 2021, there is a forecast that the global spa market is to rise at a compound
annual growth rate (CAGR) of 5.66%.”
The term “spa” is defined as “a place dedicated to a person’s well-being via a variety of
professional services that emboldens the rejuvenation and revitalization of his mind, body, and
spirit” (Schmidt, 2017). Spa Service Market (2018) states that “in order to deliver fitness, peace
of mind, pleasure, health, and wellness to end users, personalized services are tailored to fit to
serve this purpose. Moreover, these services are lucrative in addressing stress management,

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medical ailment treatments, body detoxification, weight reduction, and immune system building."
There is a solid competition in the Philippine spa industry. Innumerable spas are
ubiquitous in Metro Manila. One of them is Four Leaf Spa. On average, it has around 250
customers monthly. Like any other establishments in the Philippines, Four Leaf maintains a
Facebook page to expand its target market. The spa is spending P1,000 for a weekly Facebook
and every year. The owner relies on the Facebook ad and word of mouth as marketing strategies
to gain more customers. Unfortunately, Four Leaf’s market share has not been increasing
significantly and can probably be concluded that currently, it has no effective promotion,
advertising, and publicity strategy. With the said case, the researcher would want to test the effect
of Facebook advertising on customers' repurchase intentions. The company can boost sales and
profits by knowing its customers' purchase behavior.

1.1 Review of Related Literature

Repurchase intention is defined as "the customers' objective to purchase again from the
same e-commerce retailer" (Yi & La as cited in Liao et al, 2017). Previous studies have used this
construct as the dependent variable. Liao et al (2017) used a 5-point Likert scale (1 = strongly
disagree / 5 = strongly agree) to quantify the repurchase intention by asking these 4 questions:
1. I intend to repurchase products or services from the e-store in the future.
2. I expect my purchases from the e-store to continue in the future.
3. I would not like to purchase products or services from the e-store again.
(reverse coded)
4. The probability that I will repurchase from the e-store is high.
Meanwhile, Facebook advertising is “any ads that appear in the News Feeds on desktop, on
mobile, and in the right column of Facebook on the desktop" (What are Facebook Ads, 2018).
Several studies have been made to measure the efficacy, value, and success of Facebook
advertising. Tikno (2017) surveyed among 100 undergraduate students of Cypriot Universities to
ask ‘Yes or No’ questions regarding their perception of Facebook advertising. Unfortunately, the
question items used were not shown in the study.
On the other hand, mobile advertising is “a form of advertising that transmits
advertisements messages to users via mobile phones or other wireless communication devices"
(Chen & Hsieh as cited in Martins, 2018). Martins (2018) used advertising value, flow
experience, and web design quality as measures of mobile advertising and as independent
variables in the study.
Ducoffe (as cited in Martins, 2018) described advertising value as “a subjective evaluation
of the relative worth or utility of advertising to consumers”, web design quality is “the set of
elements that a consumer experiences on a website – information search, product selection.”(Ha
& Stoel as cited in Martins, 2018), while Martins (2018) stated flow experience as “optimal and
enjoyable experiences when an individual engages in an activity with total involvement,
concentration, and enjoyment.” Martins (2018) used all constructs as the independent variables.
To measure the advertising value, he used a 5-point Likert scale (1 = strongly disagree and 5 =
strongly agree) and asked the following questions:
1. I feel that smartphone advertising is useful.
2. I feel that smartphone advertising is valuable.
3. I feel that smartphone advertising is important.
He also used a 5-point Likert scale (1 = strongly disagree and 5 = strongly agree) to gauge the

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flow experience through the following questions:
1. Smartphone advertising allows me to control my own purchase intention.
2. I am not distracted by other online activities and stay focused on smartphone
advertising.
3. I find myself eager to press on advertising content or activity displayed on my
smartphone.
4. I like to pay attention to smartphone advertising.
A similar 5-point Likert scale (1 = strongly disagree and 5 = strongly agree) was used to
evaluate the web design quality via the questions below:
1. The website looks attractive.
2. The website uses fonts properly.
3. The website uses colors properly.
4. The website uses multimedia features properly.
Liao et al (2017) used satisfaction as a mediating variable to determine its contribution to
influence the online shoppers' repurchase intentions. Satisfaction is the "customers' post-
consumption evaluation and effective response to the overall consumption experience” (Oliver as
cited in Liao et al, 2017). Liao et al (2017) used a 5-point Likert scale (1 = strongly disagree
/ 5 = strongly agree) to measure the satisfaction by asking the following:
1. The experience that I have had with the e-store has been satisfactory.
2. In general terms, I am satisfied with the way that the e-store has carried out
transactions.
3. In general, I am satisfied with the service I have received from the e-store.
4. I am happy that I purchased from the e-store.
Several studies about online advertising and consumers’ repurchase intention focus on
big online stores like Amazon, Taobao and Airbnb, specific products like wine (Bues, Steiner,
Stafflage & Krafft, 2017), cars (Ng, Law & Zhang, 2018) and products in general (Martin, 2018;
Alalwan, 2018; Muda, Mohd & Hassan, 2016; Dehghani & Tumer, 2015; Abu Bakar & Bidin,
2014; Kim & Han, 2014; Davis, Smith & Lang, 2017;) and service like movies (Abu
Bakar&Bidin, 2014). Most of the literature used to survey for data collection. Locally, studies
that have provided insights into the spa industry caused by online advertising are very limited.
This study intends to examine the influence of Facebook advertising on customers’ repurchase
intention of Four Leaf Spa and to deliver proposals and recommendations on how to progress its
Facebook advertising in order to boost sales and market share.

Framework
The study adapted the framework of Martins (2018) and Liao et al (2017). The researcher
used the independent variables of Martins (2018) such as advertising value, flow experience, and
web design quality as measures of Facebook advertising. Moreover, he used the moderating
variable satisfaction and dependent variable repurchase intention of Liao et al (2017). This study
intends to analyze the effect of Facebook advertising on customers’ repurchase intentions. Figure
1 illustrates the 3 independent variables such as advertising value, flow experience, and web
design quality as measures of Facebook advertising. The dependent

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variable is customers' repurchase intentions, while the intervening variable is customer


satisfaction.

Advertising
Value
H1 Customer H2 Customer
Satisfaction Repurchase
Flow Experience Intention

Web Design H3
Quality
Figure 1. Operational Framework

2. Methodology
An online survey was conducted amongst customers of Four Leaf Spa in Quezon City
through the help of its owner, Mrs. Audrey Wong-Sison. An average of 250 customers per
month is used as the basis of the population.
The study is descriptive and explanatory research. It describes the profile of the
respondents, a mean and standard deviation of the constructs. Furthermore, it evaluates the
influence of Facebook advertising on customer satisfaction of Four Leaf Spa and customer
repurchase intention.
The study used purposive sampling. One hundred fifty-five customers of Four Leaf Spa in
Quezon City were invited to participate in the online survey. Seventy customers responded to the
invitation. The researcher was able to get a 45% response rate. The computed sample size is 154
(n=250/(1+250(.05)2). An average of 250 customers per month is used as the basis of the
population.
Survey questions were adapted from Martins (2018) in order to measure the Facebook
advertising such as advertising value, flow experience, and web design quality and from Liao et
al (2017) to assess customer satisfaction and repurchase intention. Each question was measured
via the 5-point Likert scale:
1 = strongly disagree, 2 = disagree, 3 = neutral, 4 = agree, and 5 = strongly agree
To test the construct reliability, Cronbach’s alpha is used.
The researcher computed the average of responses on questions per variable. To describe
the means of the variables, the researcher computed the interval of responses per variable and
made a table of verbal interpretation (see table 1 – 5).

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Interval (I) = (Hi – Lo)/# of categories = (5-1) / 5 = 0.80

Table 1. Verbal interpretation of repurchase intention


Range Repurchase Intention
4.20 – 5.00 highly intend to repurchase
3.39 – 4.19 intend to repurchase
2.58 – 3.38 moderately intend to repurchase
1.77 – 2.57 slightly intend to repurchase
.96 – 1.76 not intend to repurchase

Table 2. Verbal interpretation of advertising value


Range Advertising Value
4.20 – 5.00 highly effective
3.39 – 4.19 Effective
2.58 – 3.38 moderately effective
1.77 – 2.57 slightly effective
.96 – 1.76 Ineffective

Table 3. Verbal interpretation of flow experience


Range Flow Experience
4.20 – 5.00 highly enjoyable
3.39 – 4.19 Enjoyable
2.58 – 3.38 moderately enjoyable
1.77 – 2.57 slightly enjoyable
.96 – 1.76 Unenjoyable

Table 4. Verbal interpretation of web design quality

Range Web Design Quality


4.20 – 5.00 excellent
3.39 – 4.19 very satisfactory
2.58 – 3.38 satisfactory
1.77 – 2.57 moderately satisfactory
.96 – 1.76 poor

Table 5. Verbal interpretation of customer satisfaction


Range Customer Satisfaction

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4.20 – 5.00 highly satisfied
3.39 – 4.19 satisfied
2.58 – 3.38 moderately satisfied
1.77 – 2.57 slightly satisfied
.96 – 1.76 not satisfied

To test the construct reliability, Cronbach’s alpha is used. In order to test the normality of
the data, skewness and kurtosis are used. In examining the multi-collinearity of the data, the
variance inflation factor (VIF) is used. On the other hand, so as to examine the effect of
advertising value, flow experience and web design quality on customer satisfaction, the study
used multiple regression analysis. Equation 1 is the formula for linear regression.
𝜸𝒊 = 𝜷𝟎 + 𝜷𝟏𝑿𝟏 + 𝜷𝟐𝑿𝟐 + 𝜷𝟑𝑿𝟑 + 𝜺𝒊 (Eq. 1)
where:
𝛾𝑖 = customer satisfaction
𝛽0 = constant
𝛽1𝑋1 = advertising value
𝛽2𝑋2 = flow experience
𝛽3𝑋3 = web design quality
𝜀𝑖 = error term
To check the effect of customer satisfaction on customer repurchase intention, the study
used linear analysis. Equation 2 is the formula for linear regression.
= 𝜷𝟎 + 𝜷𝟏 𝑿 𝟏 + 𝜺 𝒊 (Eq. 2)
where:
𝛾𝑖 = customer repurchase intention
𝛽0 = constant
𝛽1𝑋1 = customer satisfaction
𝜀𝑖 = error term
Lastly, in testing the effect of advertising value, flow experience and web design quality on
customer repurchase intention, the study used multiple regression analysis. Equation 3 is the
formula for linear regression.
𝜸𝒊 = 𝜷𝟎 + 𝜷𝟏𝑿𝟏 + 𝜷𝟐𝑿𝟐 + 𝜷𝟑𝑿𝟑 + 𝜺𝒊 (Eq. 3)
where:
𝛾𝑖 = customer repurchase intention
𝛽0 = constant
𝛽1𝑋1 = advertising value
𝛽2𝑋2 = flow experience
𝛽3𝑋3 = web design quality
𝜀𝑖 = error term
Discussion of Results
2.1 Descriptive Analysis

The average age of respondents was 33.5 years (SD = 7.96). Respondents were 25 men
and 45 women aged 18 to 55 years (men: M = 34.8, SD = 7.24; women: M = 32.7, SD = 8.30).

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The median and mode for age were 32 and 27, respectively.
The average monthly salary of respondents was Php 23,684. Respondents were 25 men
and 45 women with average monthly salary from Php 10,000 to Php 50,000 (men: M = 23195,
SD = 4152; women: M = 23956, SD = 8028). The median and mode for salary were Php23,684
and Php25,000, respectively.
There were 32 married and 38 single respondents.
The repurchase intention score has a mean of 4.19. Based on table 1, customers intend to
purchase spa services from Four Leaf in the future.
Advertising value score has a mean of 4.38. Based on table 2, Facebook advertising is
highly effective because of its reach, functionality and social value.
The flow experience score has a mean of 4.31. Based on table 3, customers highly enjoyed
the Facebook and because they became engaged, focused and found it interesting to click the ad
content.
Web design quality has a mean of 4.24. Based on table 4, Four Leaf Spa’s Facebook and
has an excellent web design quality with the overall layout - font, color scheme, and multimedia
features.
Customer satisfaction has a mean of 4.34. Based on table 5, customers are highly
satisfied because they are pleased and content with the service they have received from Four
Leaf Spa.

2.2 Test of Construct Reliability

Cronbach's alpha was used to test the reliability of the constructs. Based on table 6, the
following Cronbach’s alpha values indicated an acceptable level of reliability: .91 for advertising
value, .82 for flow experience, .92 for web design quality, .91 for customer satisfaction and .76
(RI1, RI2, RI4) for repurchase intention. Note that a reliability coefficient of .70 or higher is
considered acceptable.
Table 6. Test of Reliability for Constructs
Items Cronbach’s
Alpha
AV1, AV2, AV3 .91
FE1, FE2, FE3, FE4 .82
WDQ1, WDQ2, WDQ3, .92
WDQ4
CS1, CS2, CS2, CS4 .91
RI1, RI2, RI3, RI4 .46
RI1, RI2, RI4 .76

2.3 Test of Normality

The skewness and kurtosis test for normality revealed that the distributions of all
continuous variables are normal because their z-values are within +/- 3.29. According to Kim
(2013), for a medium-sized sample (50<n<300), accept the null hypothesis at absolute z-value

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within +/- 3.29, which corresponds with an alpha level 0.05. See table 7.
Table 7. Skewness and kurtosis test
Continuous Test Statistic Std. Z-
Variables Error score
AV Skewness -.13 .29 -.44
Kurtosis -.83 .57 -1.47
FE Skewness .64 .29 2.22
Kurtosis -1.104 .57 -1.95
WDQ Skewness .29 .29 1.01
Kurtosis .35 .57 .61
CS Skewness .24 .29 .84
Kurtosis -.39 .57 -.69
RI Skewness .67 .29 2.33
Kurtosis 1.46 .57 2.58

2.4 Test of Multicollinearity

There is no multicollinearity between variables. Their variance inflation factor (VIF)


scores are below 10. The following are their VIF scores: AV = 1.56, FE = 1.43, WDQ = 1.53.

2.5 Regression Analysis

Table 8. Customer satisfaction as the dependent variable


Model 1
Constant 1.03**
(0.45)
Advertising Value (AV) 0.46***
(0.093)
Flow Experience (FE) 0.18
(0.11)
Web Design Quality (WDQ) 0.13
(0.11)
R-squared 0.50
Adjusted R-squared 0.48
P-value 0.000
No. of observations 70

Standard errors are reported in parentheses.


*, **, *** indicates significance at the 90%, 95%, and 99% level, respectively

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A linear regression analysis was used to test if advertising value, flow experience, and
web design quality significantly predicted customer satisfaction as shown in Model 1 of Table
8. The results of the regression indicated that the predictor explained 48.2% of the variance (R2
= .50, F(3, 66) = 22.4, p < .001. It was found that only advertising value significantly predicted
customer satisfaction (B = .46, p < .01).
Table 9. Repurchase intention as the dependent variable
Model 2
Constant 1.76***
(0.32)
Customer Satisfaction (CS) 0.56***

(0.074)

R-squared 0.46
Adjusted R-squared 0.45
P-value 0.000
No. of observations 70

Standard errors are reported in parentheses.


*, **, *** indicates significance at the 90%, 95%, and 99% level, respectively

A linear regression analysis was used to test if customer satisfaction significantly


predicted customer repurchase intention as shown in Model 2. The results of the regression
indicated that the predictor explained 45.2% of the variance (R2 = .46, F(1, 68) = 57.8, p < .01. It
was revealed that customer satisfaction significantly predicted customer repurchase intention (B =
.56, p < .001).

Table 10. Repurchase intention as the dependent variable


Model 3
Constant 1.30***
(0.38)
Advertising Value (AV) 0.23***
(0.079)
Flow Experience (FE) 0.22**
(0.093)
Web Design Quality (WDQ) 0.22**
(0.089)

R-squared 0.48
Adjusted R-squared 0.45

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P-value 0.000
No. of observations 70

Standard errors are reported in parentheses.


*, **, *** indicates significance at the 90%, 95%, and 99% level, respectively

A linear regression analysis was used to test if advertising value, flow experience, and
web design quality significantly predicted customer repurchase intention as shown in Model 3.
The results of the regression indicated that the predictor explained 45.4% of the variance (R2 =
.48, F(3, 66) = 20.1, p < .001. It was found that advertising value significantly predicted customer
repurchase intention (B = .23, p = .005) and that flow experience significantly predicted customer
repurchase intention (B = .22, p = .021). In addition, it was established that web design quality
significantly predicted customer repurchase intention (B = .22, p = .016).

2.6 Discussion

This study provided support for the proposed research model. The results fully validated the
developed hypothesized significant effect of Facebook advertising on customer’s repurchase
intentions.
The findings of the study proved that specific measures of Facebook advertising such as
advertising value, flow experience, and web design quality positively affect the customer
repurchase intention. Moreover, customer satisfaction significantly affects the repurchase
intention. The findings are consistent with the study of Liao et al (2017). Then again, advertising
value is the sole determinant that significantly affects customer satisfaction. It can be implied that
a customer can be satisfied because of the advertising value. However, for a customer to intend
to repurchase, all determinants such as advertising value, flow experience, and web design quality
must be present to gain his/her loyalty. The results also entail the owner of Four Leaf Spa to take
advantage of Facebook as a medium of advertising. She needs to improve the Facebook ad by
making it more interactive including more pictures and videos (Tikno, 2017). She is also
suggested by her customers to post enticing promos and incentives and to update the spa's array
of services. An effective advertisement is an important key to a successful advertising campaign.

Conclusions
This study examined the effect of Facebook advertising on customer repurchase intention.
As per the results, advertising value, flow experience, and web design quality positively affected
the customer repurchase intention. The researcher established that customer satisfaction positively
affected the repurchase intention. The results were supported by prior studies. Advertising value
was recognized, as well, as the sole determinant that significantly impacts customer satisfaction.
The results implied that advertising value is essential for a customer to be satisfied. However, for
a customer to intend to repurchase services, advertising value, flow experience, and web design
quality must be present to gain his/her loyalty.
Since Facebook advertising is only done once a year for one week by the owner, she
should invest and subscribe to a frequent posting of Facebook ads, as they have a high

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engagement rate at a rather low advertising cost (Tikno, 2017).
This study could provide information to the owner of Four Leaf Spa as well to local and
foreign spa owners that effective Facebook advertising could lead to high repurchase intentions.
Then, in turn, high repurchase intentions could translate to high sales and more customers. This
can be possible by improving the Facebook advertising, focusing on advertising value, flow
experience, web design quality, to be able to gain the loyalty of the customers.
The study could provide information to services marketing that social media is important
to promote the services offered by the spa business to its customers.
The study could also add to the existing literature about Facebook advertising and
customer repurchase intention.

Limitations and Recommendations for future research

Future research is still considered necessary. A research can be made on other


measurements of Facebook advertising such as perceived usefulness and ease of use (Elwalda, Lu
& Ali, 2016; Abu Bakar&Bitin, 2014), personalization (Bues et al, 2017; Zhang et al, 2014), image
appeal, navigation design and connectedness (Cyr, Head, Lim & Stibe, 2018). Trust (Lu, Fan &
Zhou, 2016) can be used as an intervening variable to test the effect on customer's repurchase
intentions. A study can be made with larger sample size and with different types of websites.

References
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JGB 1223
FOCUS: H&M’s Sustainability Efforts as Seen by Millennials

Balarbar, Mary Julie V.


Marketing and Advertising Depatment
De La Salle University-Manila
mary.julie.balarbar@dlsu.edu.ph

ABSTRACT
H&M opened its first outlet at SM Mega Mall in October 2014. According to a Philippine
Star article dated August 2018, it has outlets in major provinces like Cebu, Pampanga and
Iloilo. In compliance to H&M’s worldwide sustainability efforts, H&M Philippines has a
campaign/promotion that encourages customers to bring and donate their old clothes -
whatever brand and in any condition - good or bad condition. In return, H&M will give the
customer 15% discount vouchers. From H&M’s website, one can see that disposing clothes
and putting them in landfills is not an option. They believe that recycling is one of many ways
to fulfill their goals towards a sustainable future. In 2018, H&M Group collected over 20,649
tons of customers’ unwanted old clothes and textiles (Retrieved on November 2018 from
https://about.hm.com/en/media/Our- stories/fromthrowawaytoheretostay.html). This effort is
being done as a response to being part of the fast fashion industry. Fast fashion is an approach
to the design, creation and marketing of clothing fashion that emphasizes making fashion
trends quickly and cheaply available to consumers (Retrieved on October 2018 from
https://www.merriam-webster.com/dictionary/fast%20fashion). The results show that
respondents are environmentally-conscious. They know the negative effects of fast fashion.
All of the respondents have shopped at H&M for the past 6 months. However, almost half are
not aware of the sustainability efforts. The study also shows that respondents are willing to
purchase and shift to stores with sustainable efforts but actually participating in the efforts is
weak. Only 10% have actually participated in the campaign which makes it unsuccessful.
Thus, H&M should increase its efforts for the awareness of the program and also review and
strengthen the incentives to participate.

Keywords: Sustainability, Fast Fashion, Recycling, UAI

INTRODUCTION

H&M is one of the biggest international retailers in the country. H&M Philippines has this
ongoing promotion that encourages customers to bring and donate their old clothes in
whatever condition and regardless of brand in exchange for 15% discount vouchers.

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H&M is a fast fashion brand. Fast fashion is an approach to the design, creation, and
marketing of clothing fashions that emphasizes making fashion trends quickly and cheaply
available to consumers (Retrieved on October 2018 from https://www.merriam-
webster.com/dictionary/fast%20fashion).

"Fast fashion” means that companies copy recent style trends from expensive designers and
then make them more accessible in terms of location and price. Because of this, companies in
the fast fashion industry cut their costs and increase their carbon footprint. Strategically, fast-
fashion consists of different approaches that make it the efficient, effective, and forward route
that most fashion retailers choose. In an article by Cachon and Swinney (2011), their findings,
is seen that those who choose to do fast fashion try to solve a basic problem in economics,
which is scarcity. As fast-fashion will try to meet the demands of the market, even if it is
uncertain how much those demands are.

OBJECTIVES OF THE STUDY

The unintended consequence of fast- fashion is textile waste. People keep on buying clothes
and how to dispose them is a problem. With so many fast- fashion retailers, this is now
become a global problem. This study aims to investigate the impact of sustainability efforts
of H&M in Metro Manila. In 2013, H&M started a huge global campaign on environmental
protection through recycling clothes. H&M has a partnership with I:CO, a global recycling
company. They pick up donated clothes from H&M stores and brings them to sorting plants
around the world. Recycling fulfills part of H&M’s sustainability efforts

The study’s objectives are as follows:

1. To determine awareness of H&M’s sustainability campaign.


2. To determine whether H&M’s sustainability campaign is an important factor in the
customers’ purchase habit.
3. To determine whether sustainability efforts of retail companies influence purchase
behavior.

SCOPE AND LIMITATION

The research focused on H&M. The 200 respondents from Metro Manila were all Millennials
(male and female ages 19-38). H&M’s sustainability efforts in the Philippines started when it
opened its first store in 2014.

SIGINIFICANCE OF THE STUDY

The findings of this study will determine whether H&M’s sustainability efforts are successful.
It will also reveal Millennials’ purchase behavior and how sustainability efforts influence
them. Recommendations will be given as to how such efforts can yield better results on the

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part of the retailer and how retailers can attract customers to support their sustainability
efforts.

CONCEPTUAL/OPERATIONAL FRAMEWORK

Inter-relationship among the sustainability dimensions of the businesses - (Fig. 1)


Ahmed, M Daud and Sundaram, David (2007) "A Framework for Sustainability Decision
Making System: A Proposal and an Implementation" Retrieved from
http://aisel.aisnet.org/icdss2007/18

This model shows the sustainability dimensions used in this study. Respondents were asked
on how much they spend and how often they shop (economic), what influences their
preference (social) and H&M’s recycling efforts (environmental). These three will result to
insights on whether economic, social and environmental factors play an important role in the
decision making process. The Usage Attitude and Image (UAI) framework was used in the
creation of the survey instrument.

REVIEW OF RELATED LITERATURE

Sustainable Fashion Supply Chain: Lessons from H&M

Given the continued increase in consumers’ environmental awareness, fast- fashion


companies have engaged in their own sustainability efforts. They do this by strengthening or
enhancing their current “sustainable fashion supply chain” if any, and if not, they must make
initiatives to create one. The sustainable fashion supply chain includes but is not limited to
the following: preparation and use of eco- friendly materials, sustainable manufacturing,

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green retailing and green logistics.

H&M has constructed its own sustainable fashion supply chain way back in 2013. Their
sustainable fashion supply chain includes: developing and creating eco-materials, conducting
safety training to their employees, checking sustainable manufacturing, reducing carbon
emissions in distribution and promoting eco-fashion. Furthermore, H&M takes the
demographics, economic status, environmental status, political and legal rules in the countries
where they operate and tailor fit their sustainability strategies to these factors.

The prevalent problem that companies such as H&M face when implementing their
sustainable fashion supply chains is often balancing the profits that they earn from re-selling
recycled and original products with the expenses incurred in recycling old textiles plus the
increased costs of processing. However, maintaining a good image as a sustainable company
has its own advantages like: tapping ethical consumers, and better brand image. These results
to a competitive advantage or put them on equal footing with competitors (Retrieved on
November 2018 from https://about.hm.com/en/media/Our-
stories/fromthrowawaytoheretostay.html).

The Philippines Goes on a Fashion Revolution.

Filipinos are generally taking interest and are more active in the reduction of their carbon
footprint but are discouraged by high prices. The booming retailers today are Zara, H&M,
Forever 21 and Topshop. These retailers are known for their human rights and environmental
violations, which severely affect the state of our planet. To combat this, the movement of
sustainable fashion, called Fashion Revolution, began.

“Fashion Revolution is a global movement that celebrates fashion, checks industry practices
and raises “global awareness” with important issues. Sophia Calugay, Fashion Revolution’s
country coordinator says that sustainable fashion means “lessening the socio-environmental
impact on our planet, and that the rate of consumption should not compromise future
generations.” It prioritizes quality over quantity despite cheaper options. Sustainable fashion
is about reducing the amount of discarded and old clothes sent to landfills. It should also
decrease the environmental impact of agro-chemicals used in the production of conventional
fibers like polyester, cotton and the like.

Today, 400% more articles of clothing are bought than before. To meet this demand, factories
come up with ways to fulfill this. Thus, there is a rise of unethical practices. These include
damage to the environment, maltreatment of factory employees and unfair labor practices.

In the Philippines, there are concerned organizations but consumers understanding of Fashion
Revolution will still take time. More so, the practice of sustainability. Only socioeconomic
classes A-B have the purchasing power to support the fast-fashion revolution being discussed
here. Only international brands are more likely to embrace sustainability than local brands.
But Calugay explained that the bulk of our socioeconomic classes in the Philippines are C, D
and E and they take part in their own way of being sustainable by participating in “ukay-

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ukay” (thrift and second-hand shopping). Recycling clothes prolongs the need to buy new
clothes and also reduces throwing them away.

H&M Is Pushing Sustainability Hard, But Not Everyone Is Convinced

H&M as a company has been taking big strides in promoting sustainability and working
towards a better environment. By 2030, the brand aims to use only recycled or other
sustainability sourced materials. By 2040, it wants to be 100% climate positive. H&M, the
world's second-largest clothing retailer (in sales), whose brands include Cos, And Other
Stories, Weekday and Monki, currently sources 35% of its materials from recycled and
sustainably sourced materials (Retrieved on November 2018 from
h t t p s ://about.hm.com/en/media/Our-stories/fromthrowawaytoheretostay.html).

That being said, the consumers (particularly teenagers) may not be convinced on H&M’s
sustainability report because of rumors that they burn unused and unsold clothes instead of
recycling them

The recycling campaign that many retailers espouse are not really to care for the environment.
In the article created by The Fashion Law (2017), the campaign was mostly a marketing
strategy for consumers to even buy more. The donated clothes were not repurposed into
making new clothes for H&M, but these were allegedly sold to second-hand retailers
particularly in developing countries.

Despite negative news, H&M is confident of its growth in the coming years despite scandals
and decreases in their stock orders. Perhaps what H&M needs to do is start cleaning up their
image and continuously work hard in convincing the young consumers that they are true to
their sustainability efforts.

H&M is striving to become a Sustainable Fashion Brand

H&M will be launching its seventh Conscious Exclusive Collection; a fashion line that uses
100% regenerated nylon fiber and recycled silver. By 2020, H&M aspires to use only
sustainable cotton and only recycled or other sustainably-obtained materials by 2030. H&M
strongly believes that their customers and fans support and appreciate their Conscious
Exclusive Collection. They believe that they need to move more toward a circular model for
the long-term sustainability of not just the business but the planet as well. As a global
company, H&M has the capability to influence the industry as a whole, leading them towards
a sustainable future for fashion (Retrieved on November 2018 from
https://about.hm.com/en/media/Our-stories/fromthrowawaytoheretostay.html).

METHODOLOGY

Focusing on Millennials, a quantitative UAI (Usage, Attitude and Image) study was
conducted through online and face to face surveys. A total of 200 respondents were gathered

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in Metro Manila. The data collection was conducted during 3 and 4th week of January 2019.
rd

A UAI study is a strategic type of study, which is conducted to identify the factors related to
usage of a product/service and attitude of customers towards the brand. It also aids in
identifying the image of the brand for the customers’ perspective.

PRESENTATION AND ANALYIS OF DATA

There were 43% male and 57% female within the age range of 20-35 years old belonging to
the socio- economic classes C and B. They all qualify as respondents for this study on
Millennials. All respondents have shopped for clothes in the past 6 months. The top 3 retailers
where they buy are Uniqlo, H&M and Forever 21. More than half shop monthly with an
average spending of P3,000-P4,000.

Figure 1: Reasons for Shopping


Figure 1 shows that the top 3 reasons for choosing a retailer are Quality, Style/Fashion and
Affordability. The lowest reason for choosing a retailer is the retailer having sustainability
efforts. This means that in choosing a clothing retailer, there is minimum concern for
sustainability. What drives purchase are the traditional reasons. All respondents identified
Uniqlo, H&M and Forever 21 as fast- fashion brands.

Figure 2. Negative Effects of Fast-Fashion According to Respondents

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Figure 2 shows that the top negative effect of fast- fashion was unfair labor practices, followed
by harmful to environment. There have been a lot of news about unfair labor practices among
big retailers like use of children, low wages, long working hours and unfavorable working
conditions. Environmental issues like waste management, recycling is one issue that fast-
fashion is trying to address too.

Figure 3: Respondents’ Responses to Shifting

Figure 3 shows that the biggest number (29%) are neutral about shifting if they found out
that the retailer they buy from are guilty of the negative effects of fast fashion. This is related
to factors that influenced their purchase. They would choose a retailer based on the quality,
style/fashion of the products. The difference between those who will shift over those who will
not is just 1%. Thus, it can be said that the desire to shift to retailers practicing sustainability
is not strong.
All of the respondents (100%) having shopped at H&M for the past 6 months but only 55%
of them know H&M’s sustainability efforts and majority learned from posters found in the
stores. Therefore, H&M should exert more efforts in advertising and go beyond posters. From
these respondents who are aware, almost everyone (95%) did NOT participate in the store’s
sustainability efforts and the main reason for participating is the discount given by the store.

Figure 4: Motivation to Participate in H & M’s Recycling Program

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Figure 4 shows the factors that will motive them to participate. The biggest factor is higher
discount. The current discount is 15% so H&M should see if this discount can be increased.
Following discount is convenience. Some shoppers find it difficult to bring the clothes to the
store so this should be evaluated.

Figure 5: Will You Donate or Not?

Since very few donate, those who did not donate were asked whether they will donate. Figure
5 shows that the biggest number (39%) said they will donate within the year. What is
significant is the 13% who will definitely NOT donate. H&M should investigate the factors
respondents mentioned as motivators in donating.

Figure 6: Attitude towards Recycling

Figure 6 shows how respondents viewed H&M’s sustainability efforts. They were very
supportive of the campaign. However, this did not translate to action. Despite more than half
saying that H&M was true in its efforts, a big majority thinks this was just a strategy to increase
sales and this did not make H&M a better store. However, the campaign is successful in making
the respondents become more environmentally- friendly. It provided them an easier way of
disposing old clothes.

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Figure 7: Should All H& M Stores Participate in the Campaign?


The respondents were asked if they would want all stores to have sustainability efforts (Figure
7). The answer was neutral. They felt that if all stores would have sustainability efforts this
might result to higher prices. This concurs with the finding that what is important to the
customers are quality, style and fashion.

Figure 8: Shop at Stores with Sustainable Efforts?

The respondents were asked if they would only shop only at stores with sustainable efforts
(Figure 8). The biggest number is neutral. However, there were more of those agreeing than
disagreeing. Thus, the consciousness and willingness to support stores with sustainable efforts
like H&M is present. Translating this to action is the challenge.

CONCLUSIONS AND RECOMMENDATIONS

Millennials know about fast- fashion and its negative effects and will likely support or
purchase from a store that espouses sustainability. However, this is driven by personal gain.
They patronize retailers with sustainable efforts. However, this is not the main reason for
choosing a retailer. They choose quality, fashion and affordability. Millennials are neutral
about shifting to retailers with sustainability efforts. Therefore, currently sustainability effort
is good to have but it does not drive purchase. Currently, sustainability is not a competitive
advantage that will make consumers choose H&M over other fast- fashion brands.

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Among the economic, social and environmental factors, the weakest is the environmental
factor. Quality is an aspect of price, which was the strongest factor. Style and fashion are
social factors, which came second. Environmental was the lowest factor.

There is still a significant number who are not aware of H&M’s sustainability efforts despite
almost everyone shopping there. Thus, H&M should put more initiative in promoting their
sustainability efforts because their consumers are willing to participate. As also mentioned in
the related literature, H&M’s efforts are being questioned. Being a global brand, H&M can
influence other companies to have sustainable efforts as long as this is proven and seen in the
stores.

The sustainability efforts on the website are better explained so efforts to drive people to the
website should be done. This will increase the credibility of the campaign and would lessen
the notion that it is just a marketing strategy to increase sales. To lessen consumer doubts,
H&M should mark clothes that used recycled textiles. This way shoppers would really see
how the collected items were recycled and made into new clothes. They can also practice up-
cycling old clothes and create a special section in the stores for this. This is a huge trend in
Japan and this can also be done in the Philippines. If not up-cycling, they can also have a
special section featuring vintage clothes. Thrift shopping and second-hand shopping is very
popular in the Philippines and H&M can take advantage of this.

ACKNOWLEDGEMENT

The author would like to thank MARKRTL section K31 (term 2, SY 2018-2019) for the data
gathering component of the study and help in the review of related literature.

REFERENCES

Campus, M. (2018, April 9). Environmental Sustainability in Fast Fashion Industry [PDF].
Finland: Bachelor’s Program in International School of Business, Aalto University.

Shen, B. (2014, June 9). Sustainable Fashion Supply Chain: Lessons from H&M[PDF].
Shanghai: Glorious Sun School of Business and Management, Donghua University.

Ruizol, J. (2018, May 03). The Philippines Goes on A Fashion Revolution. Modern Filipina.
Retrieved from https://www.modernfilipina.ph/looks/fashion/philippines-fashion-
revolution
Farmbrough, H. (2018, April 14). H&M Is Pushing Sustainability Hard, But Not Everyone Is
Convinced.Retrieved from
https://www.forbes.com/sites/heatherfarmbrough/2018/04/14/hm-is-pushing- sustainability-
hard-but-not-everyone-is-convinced/#199587bb7ebd

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Samaha, B. (2018, March 26). H&M is striving to become a Sustainable Fashion Brand.
Retrieved from https://www.forbes.com/sites/barrysamaha/2018/03/26/hm-
conscious-exclusive-collection-2018-sustainable-fashion-anna-gedda-
interview/#161072e574f0

The Fashion Law. (2017). Are Fashion’s Recycling Programs as Effective as They Seem?
Retrieved from: http://www.thefashionlaw.com/home/are-fashions-recycling-
programs-as-effective-as-they-seem

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JGB 1268
FOSTERING EMPLOYEE HAPPINESS: PERSONAL
GROWTH PROGRAMS AS FOUNDATION FOR
EMPLOYEE PERFORMANCE AND PRODUCTIVITY IN
ORGANIZATIONS
Miguel Paolo Paredes
De La Salle University, Manila
miguel.paredes@dlsu.edu.ph
ABSTRACT
More than half of the world's population (58%) spend one-third of their adult life
engaged at work. A person's work has a profound effect on well-being ("Global Strategy on
Occupational Health for All...”.1994). With most of our lives revolving around work, it is easy
to see that the concept of an individual's happiness extends to the workplace. The paper seeks
to explore the influence of an authentically-implemented Personal Growth Program (PGP)
much like that implemented by Google, Nike and Apple into an organization's structure and
policy.
Through the proposal of a preliminary theory, it is hoped that further inroads are
created towards uncovering and supporting the value personal growth programs may have on
organizations, and more importantly, its implications in increasing the happiness of employees.
This paper takes on this subject through a Humanistic approach, wherein the value is created
only when stakeholder interests (including employees) are met.
This paper focuses on Personal Growth Programs (PGP) as a specific strategy of which
organizations may adapt to further enhance the happiness of their employees. Personal
Development Program (PDP) as defined by the Quality Assurance Agency, as “a structured and
supported process undertaken by an individual or organization to reflect on their own learning,
performance and/or achievement and to plan for their personal, educational and career
development”. (QAA 2001 QAA 2001 Quality Assurance Agency for Higher Education) PGP in
this paper is defined very much the same except that these programs are implemented by the
organization as part of its operational structure.
Can the implementation of a Personal Growth Program and its inclusion in an
organization's policy increase the happiness of its employees? Does employee happiness in the
workplace positively relate to their productivity? Does the authenticity or lack of it, of
organizational policies in providing PGP have implications as conditions for the effectiveness
of the program in achieving objectives by increasing happiness?

Keywords: Employee Happiness Well-being Personal Growth Programs, Authentic


well- being practices

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PART I.
Background of the Study
"I Hate Mondays." According to the European Journal of Epidemiology, more heart attacks
happen on Mondays, people weigh heavier, and generally, people feel least happy (Witte et al.
2005. p.395).
The idea of Monday as being the least liked day of the week stems from, the fact that
traditionally, the work week starts on this day. Biblically it comes after the seventh day, which
is held as a day of rest. It is the notion of starting a whole new week of work is what gets most
of us down. The concept of work is commonly regarded as toil, obligation, function, drudgery
paints the perspective that works, while a part of our lives, is not usually related to our ideas of
happiness.
Happiness is a universal need for humanity. Human production in the arts, religion, laws
and countless human institutions throughout the centuries have endowed to us a massive
collection of artifacts of which, the production of can be ultimately traced back to the basic drive
of pursuing happiness in its different modes of expression.
More than half of the world's population (58%) spend one-third of their adult life engaged
at work. A person's work has a profound effect on well-being ("Global Strategy on Occupational
Health for All...”.1994). With most of our lives revolving around work, it is easy to see that the
concept of an individual's happiness extends to the workplace.
In 2014 Google was named "Best Company to Work For” for the 5th time by the Great
Place to Work Institute and Fortune Magazine ("The Google Way of Motivating Employees".
2014). Aside from other more extrinsic benefits such as tuition reimbursements, no-cost health,
and dental assistants, vacation packages, etc. Google's policy in motivating and keeping its
employees happy was seen as one of its strongest key points which enabled the awarding. The
company's work philosophy is: "To create the happiest, most productive workplace in the
world."
Chade Meng Tan, an engineer in Google, in collaboration with Daniel Goleman, a Stanford
University professor, designed a course on mindfulness in 2007. Also called the "Search Inside
Yourself" course, this is a training program for employees which can be taken in 19 hours over
seven weekly sessions, or a two-and-a-half day intensive course (Baer. 2014). The program is a
combination of meditation exercises, workshops, reflection, mentoring and other techniques to
help employees find the best in themselves and by so doing, create personal growth and increase
happiness. This course is broken down into three modules; (1) Attention Training: to create a
quality of mind which is calm and clear which forms emotional intelligence, (2) Self-knowledge:
to enables self-mastery by having a high perception of one's own cognitive and emotive
processes, and (3) Creating mental habits: imbibing positive mental habits to increase positive
energies.
Google's Mindfulness Program has gained such momentum that other corporations have seen
the value in personal growth programs for their own employees. This interest outside Google
gave birth to various off-shoot institutions such as the foundation of the Search inside Yourself
Leadership Institute (SIYLI) in 2012. As an independent nonprofit organization, SIYLI caters
to other corporate, nonprofit and government organizations in their need to improve employee
performance. Monika Broecker, who worked with Chade Meng Tan at Google, headed Google's
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Schools of People Manager Development and Personal Growth. Broecker went on to establish
the Center for Personal Growth. The Center for Personal Growth works with individuals and
organizations to provide coaching sessions, workshops and consulting and facilitating services
for organizations. Some of their services include Career Transformation Coaching, Personal
Growth Coaching, Sustainable Work- and Lifestyle Coaching, Stress Management Workshops,
Employee High Performance, Stress Management/Burnout Prevention Coaching, Team
Coaching and many more depending on the need of their clients.

PHENOMENON OF INTEREST
The paper seeks to explore the influence of an authentically-implemented Personal Growth
Program (PGP) much like that implemented by Google, Nike and Apple into an organization's
structure and policy.
Through the proposal of a preliminary theory, it is hoped that further inroads are created
towards uncovering and supporting the value personal growth programs may have on
organizations, and more importantly, its implications in increasing the happiness of employees.
This paper takes on this subject through a Humanistic approach, wherein the value is created
only when stakeholder interests (including employees) are met.
This paper focuses on Personal Growth Programs (PGP) as a specific strategy of which
organizations may adapt to further enhance the happiness of their employees. Personal
Development Program (PDP) as defined by the Quality Assurance Agency, as “a structured and
supported process undertaken by an individual or organization to reflect on their own learning,
performance and/or achievement and to plan for their personal, educational and career
development”. (QAA 2001 QAA 2001 Quality Assurance Agency for Higher Education) PGP
in this paper is defined very much the same except that these programs are implemented by the
organization as part of its operational structure.
Can the implementation of a Personal Growth Program and its inclusion in an organization's
policy increase the happiness of its employees? Does employee happiness in the workplace
positively relate to their productivity? Does the authenticity or lack thereof, of organizational
policies in providing PGP have implications as conditions for the effectiveness of the program
in achieving objectives by increasing happiness?

SIGNIFICANCE FOR RESEARCH IN HUMANISTIC MANAGEMENT AND


ORGANIZATIONS
The practice of Humanistic Management in organizations is anchored to the notion that
management keeps in mind the well-being of all stakeholders, from the owners and shareholders
to the employees and the community the organization finds itself a part of. A humanistic approach
is geared towards the more often marginalized stakeholders (employees and the community),
and as such, call for a more ethically driven look at management practice. The fact that ethical
practices are protected by Philippine law:
"The Congress shall give highest priority to the enactment of measures that protect and
enhance the right of all people to human dignity, reduce social, economic, and political
inequalities...” (De Leon, 2002, p. 390 at cited by Teehankee, 2008 p.91) strengthens the concept
of the universal nature of an ethical practice of business and organizational management. It is
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hoped that the proposed theory, as humble it may seem, may in some part add towards these
humanistic ends by expanding discussions regarding the implementation of employee
programs to increase happiness in the workplace in organizational policies. As businesses
provide work, of which work plays a fundamental role in an individual’s dignity, there is a direct
connection between business practices to universal values.

PART I. POSITIVIST THEORY


Positivism
Positivist theory is often considered as the most popular philosophical perspective in
management as it is expected that theories should not only explain phenomena but also be able
to predict it (Tsang. 2017. P.16). This stipulates that the phenomena must be observable for it
to be investigated, hence the preference of positivists applying quantitative methods of research.
Positivism assumes that reality is objective and can be investigated without bias or value
by researchers posing as passive observers (Tsang. 2017. P.16). This stance stems from the
inclination of positivism towards natural science methods of inquiry.

DEPENDENT VARIABLE:
Employee Performance and Productivity
The typical corporate entity has been traditionally looked upon as profit-driven and its main
outcome for value creation. Human Resource has been recognized as an important aspect in the
success of organizations. As implied by the amount of research on employee motivational
theories, employee retention, and employee performance, the critical role of the employee is of
great significance in the strategy of increasing organizational performance (Ramlall. 2004. p.1).
The value of an employee’s skill and knowledge cannot be undervalued and steps must be
made to foster these. An effective manager must be able to motivate employees and implement
strategies that will improve their productivity and performance. There are a number of
motivational theories that have dotted management research to this effect implicating the
significance of this subject.
Ramlall (2004), mentions theories such as the Job Design: approach wherein tasks affect
motivation, Expectancy: where the tendency to act is dependent on the expected reward
outcomes, Equity: this recognizes that individuals also take into consideration to what rewards
others receive. Maslow's Need Hierarchy Theory was a significant theory Ramlall mentioned in
his review of employee motivation theories. These needs are made up of Physiological, Security
(economic, psychological, and physical), Affiliation, Esteem, and Self-actualization.
The study of employee motivation in a business organization only strengthens the notion
that employees must be properly motivated in order to increase production and performance,
ultimately leading towards increased value for the organization. The amount of research on
person-level happiness related constructs at the workplace has suggested that positive
experiences and attitudes are associated with beneficial consequences for employees and
organizations (Fisher. 2010. P.400).

DEPENDENT VARIABLE:
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Employee Happiness
Maslow's hierarchy of needs serves as a road map, whose ultimate goal is for the individual
to achieve happiness. Once the needs for food, shelter, security are satisfied, individuals look to
further satisfy higher needs such as self-esteem and self-actualization. An individual who has
satisfied the lower order of needs may be unmotivated to perform well in the workplace if the
higher order is unrealized.
Happiness, often referred also as Subjective Well-being can be measured with affective (the
amount of pleasant versus unpleasant experiences) and cognitive (satisfaction with life in
general and life domains) measures (Schimmack. 2008). The experience of happiness is
subjective in that we do not merely take into account an individual's judgment on his/her life
satisfaction in the universal sense (work, family, health, relationships, etc). We must also take
into consideration that humans are complex beings wherein each individual may have different
dispositions (whether having a predominantly happy disposition or otherwise) regarding their
perception of their life situations. This complexity indicates that each individual has his or her
own personal view and conditions as to what will make them happy or increase their happiness.
This calls for more individually-centered strategies to enable the increase of employee happiness
in the workplace.
Happiness at work includes yet, is not limited to job satisfaction. As employees are human
individuals whose perception of what makes them happy varies from each individual. These
perceptions from positive effect in the workplace to their personal situations in life, make it a
complex task to identify general characteristics which can serve to increase happiness in the
workforce. As mentioned earlier, one strategy to affect happiness may be found in the
satisfaction of the higher order of needs. As organizations have limited influence on an
individual’s pursuit of happiness outside the organization, organizations can, however, begin to
affect happiness levels of its employees through strategies built in the culture as supported by
policies in the workplace.

INDEPENDENT VARIABLE: Implementation of Personal Growth


Programs in Organization Policy
The implementation of a Personal Growth Program in an organization may serve as an
initial strategy to improve employee happiness and well-being which may lead to increased
performance and productivity. Google’s Mindfulness program has garnered such attention that
other corporations such as Nike, Apple and others have implemented their own programs. The
establishment of consulting services for PGPs has also increased due to increasing demands.
The Search Inside Yourself Leadership Institute (established 2012) provides programs for
individuals and organizations. SIYLI was born from the Google program Chade Meng Tan
developed. They promise to "teach leaders tools for focus, self-awareness, and resilience.
Experience the mindfulness-based emotional intelligence training that was born at Google—and
is backed by science".
The program design for each organization is tailored to its needs and culture which stems
from an assessment process including stakeholder interests and unique goals and objectives.
Their clients have included: Capital One, Plantronics, Google, San Francisco Department of
Health, Deutsche Telekom, and Kaiser Permanente among others.

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The program is typically made up of the following components:
 Overview of the neuroscience of emotion, perception and behavior change.
 Attention training to enable greater emotional intelligence, including self-awareness,
self- mastery, motivation, and connection with self and others.
 Practices for developing healthy mental habits that accelerate well-being—including
effective listening, generosity, empathy, communication, and social skills.
 Mindfulness and reflection practices that support happiness, overall well-being and
exceptional leadership.

The program can be tailored to a variety of audiences such as administrators, teams, and
individual employees. The program includes SIY solutions such as interviews and assessments,
live training, a 28-day practice period and a peer-to-peer program. This is usually conducted by
2 SIY-certified teachers.
As described above, the implementation of a PGP and including the program as an
organizational policy is an arduous task. Commitment from the organization must be present to
enable the proper allocation of resources. For the PGPs to be part of the culture of an organization,
its implementation must be worked into the policy as a viable component of the workplace. This
paper suggests the introduction of PGPs as an ongoing commitment of the organization to its
employees, available to them for as long as they are employed in the organization. The inclusion
of PGPs as part of the workplace structure and not a one-shot workshop bolsters the authenticity
of the implementation, instead of a PR gimmick amongst the workforce.

MODERATING VARIABLE:
The authenticity of the Personal Growth Program Implemented
In the context of organizational management, trust has been viewed as an antecedent for
cooperation. When parties trust one another, they become more willing to share resources
without fear of being taken advantage of (Tsai and Ghoshal. 1998. p.467). It is therefore
imperative that any program implemented by management on employees should be in the best
interest of both parties and be clearly perceived as such. Only when the authenticity of proposed
policies in organizations in regard to the benefits of all those involved is established, can trust
be attained. According to Tsai and Ghoshal, resource exchanges between parties are
strengthened when trust and trustworthiness are established. They also mention the need for a
shared vision amongst members in the organizations so that misunderstandings are minimized
(Tsai and Ghoshal. 1998. P.467).
The introduction of a PGP and its effectiveness relies on whether employees see the value
of the program, which indicates their level of participation. An organization may implement
PGP which may not achieve its goals. An effective program must address causes for low
participation or engagement such as Service-needs misalignment, Time-work pressures, and
access to resources, and change readiness of employees (Spence. 2015. P.114).
It is imperative that any policy to be implemented by organizations must be authentically
beneficial to the interest of its members. Otherwise, dissent or distrust may occur which will
negate the purpose of implementing PGP as policy. To prevent this, organizations must include
employees in the development of PGPs to ensure that the program is aligned with the needs of
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the majority. Stephanie Ceccherini, Director of Wellness Services, The Lawson Group, conducts
wellness needs assessment which includes discussions/surveys with key stakeholders. This
enables the development of a program that will be aligned to accomplish goals stakeholders
want to achieve. The decision of an organization to implement a PGP in the organizational
policies may be perceived by employees as a step in the right direction towards employee well-
being in the workplace. This implementation, however, must be supported by appropriated
structures for effectiveness. This includes, as stated earlier, the inclusion of employees in the
development process, a sustainable plan for long term practice, and mechanisms for assessment.
Organizations must allocate substantial resources to enable the proper practice of these
programs. When employees see that management is willing to invest in their well-being, without
cutting corners, the policy garners authenticity. In sum, the prerequisites for authenticity of PGP
implementation may include: (1) Inclusion of stakeholders (employees) in the development of
the program, (2) Appropriate allocation of resources for the implementation be provided for
long-term sustainability, and (3) Ways of assessing the effectivity of the PGP on employee well-
being, happiness, and performance.

INTEGRATED THEORY
The proposed framework intends to suggest strategies that may add to the body of work in
regards to the increase of happiness of employees which may lead to increased performance and
productivity which also benefits organizations. Four constructs and variables with four
relationships are hypothesized in this paper.
The paper seeks to contribute to theory building in regard to a more Humanistic leaning for
organizational practices that benefit employees. The hypothesized relationships are presented in
Figure 1with the principal outcome being the increase of employee performance and
productivity.

H1: The implementation of Personal Growth Programs in organizations positively impacts the
level of Happiness of Employees.

H2: The Level of Employee Happiness positively influences levels of employee performance
and productivity.

H3: The Authenticity of the implementation of a Personal Growth Program influences whether
happiness levels of employees will increase.

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Figure 1: Positivist theory on implementation of Personal Growth Programs for organizations

PART III. CRITICAL REALIST THEORY


Critical Realism
Early in the paper, a perspective of the phenomena being studied through the Positivist
lens was presented. Positivism is very much rooted in the methods applied in Natural Science
research, as such, its ontology is based on what can only be observed. This draws towards why
Positivist research is often undertaken through empirical measurable methods. The Data gathered
represents an object as it is- from what can be observed from the surface through empirical means.
Alternative philosophies regarding theory building have been proposed. The notion of what the
description of things, acts, and phenomena should not be mistaken as theory (Bacharach. 1989.
P.497). These descriptions, often seen on the surface as empirical data must serve the theorist in
developing a proposition or hypothesis.
Analysis and regression formulas cannot fully explain predictions, especially predictions
to human processes. Critical Realism recognizes and emphasizes that "people are dynamic
agents who are influenced but not fully determined by their environment" (Teehankee. 2017. P.6).
Critical Realism focuses on the explanation of the phenomenon in terms of underlying causal
mechanisms (Teehankee. 2017. P.6). This challenges the theorist to search for structures in the
constructs from where a result may occur once a condition is met.
The proceeding sections of this paper looks at the phenomenon studied through the
perspective of Critical Realism wherein an abstracted view of the constructs are taken into
account in order to further explain each variable. In Critical Realism what we abstract from are
the many different aspects which together constitute concrete objects (Sayer. 2010. p.59). This
involves breaking down what exists (empirically) as itself and look for aspects, properties within
these objects which may affect its determination.
The explanatory model presented in Figure 2 illustrates a reproduced explanatory model
of Personal Growth Programs in organizations. Retroduction serves as the core methodological
process of Critical realism which allows researchers to move between the knowledge of
empirical phenomena as expressed through events to the creation of explanations (Scott.
Zachariadis. 2013. P.4)Personal Growth Programs have the Causal powers to cultivate a
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conducive environment, in so doing, increasing employee well-being and happiness. The
program's effectivity though is conditional on the authenticity of its implementation by
organizational leadership. A leader who aims to nurture employee happiness must develop
operating systems and a culture that reinforce the role of the individual within the context of the
community. (Sharon Andrew June 2011. p.4).
Leadership in organizations are in a position to best affect organizational culture and
draw policies to foster that. Organizational leadership, to enable an authentic strategy to increase
happiness in the organization, must not deal in piece-meal actions in regards to the introduction
of Personal Growth Programs. The implementation of such a program must be ingrained in the
authentic employee-centeredness of its design. In doing so, employees see that leadership 's
intentions are authentic and beneficial to them, thus increasing their engagement and
participation in such programs.
The authentic implementation of a program is largely based on commitment leadership
has on the well-being of its employees. Leaders must find that economic and social value are
not at odds with each other and must be interwoven in the culture of an organization. Leaders
must have the compassion to veer away from self-oriented actions and look to prosocial actions
as part of their decision-making processes (Miller et al. 2012 p.617). Compassion is seen as a
driving force for leadership to develop policies and implement programs that genuinely are
designed for the betterment of others.

Figure 2: Reproduced explanatory model Personal Growth Programs in organizations

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CONCLUSION
This paper has explored the role of how an authentically implemented Personal Growth
Program in organizations may benefit their employees by increasing happiness and well-being.
The paper proposes that the inclusion of PGP as a long-term program, included in its policy as
well as providing an allocation of resources strengthens the effectivity of such a strategy. This
proposal is grounded in Humanistic management which takes into consideration the well-being
of key stakeholders such as employees. The implementation of such a program provides a more
compassionate way of looking at human resources in the fact that it demonstrates how
organizations may take into account the personal growth, well-being and ultimately, the
happiness of its employees as part of its value creation aside from traditionally profit-creation
which has alienated the human component in business.
While some forms of employee growth programs have been practiced by organizations,
most seem ineffective which stems from a lack of authenticity- by being allocated minimum
resources, thus only being offered as quick team building, training activities with no long-term
strategies to ensure its effectivity. A properly implemented PGP supported by authenticity keeps
the key goals in mind: to ensure that employee needs for happiness in the workplace are
increased and maintained, therefore reducing underperformance and turnover rates. The proper
implementation also can influence organizational culture, when employees see that management
has authentic strategies in place to look after employee needs.
In future studies, It is recommended to test the proposed hypotheses as
illustrated in the positivist model through the gathering of empirical data in the context of
Philippine organizations as well as integrating Sikolohiyang Pilipino theories to ensure a more
relatable perspective oriented to Filipino thought, experience and culture. This may further
provide insights towards the framing of boundaries researches may take into account in
developing the theory.

REFERENCES
Andrew, S. (2011). S.M.I.L.E.S.1: The Differentiating Quotient for Happiness at Work.
Retrieved from https://www.happiestminds.com/whitepapers/smiles-differentiating-
Bacharach, S. B. (1989). Organizational theories: Some criteria for evaluation. Academy of
management review, 14 (4), 496-515.
Baer, Drake. (2014). Here's What Google Teaches Employees In Its 'Search Inside Yourself'
Course. Retrieved from https://www.businessinsider.com/search-inside-yourself-googles-
life-changing-mindfulness-course-2014-8
Fisher, C. (2010). Happiness at Work. International Journal of Management Reviews. Vol 12,
384- 412

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Global strategy on occupational health for all: The way to health at work. (1994, October 11).
Retrieved

from
https://www.who.int/occupational_health/publications/globstrategy/en/index2.html
Miller, T. L., Grimes, M.G., McMullen, J. S. & Vogus, T. J. (2012). Venturing for others with
heart and head: How compassion encourages social entrepreneurship. Academy of
Management Review, 37(4), 616-640.
Ramlall, S. (2004). A Review of Employee Motivation Theories and their Implications for
Employee Retention within Organizations. The Journal of American Academy of Business,
Cambridge, 52-63.
Sayer, A. (2010). Theory and method I: Abstraction, structure, and cause. Method in social
science (Rev 2nd edition). London: Routledge.
Schimmack, U. (2008). Measuring Wellbeing in the SOEP. SOEPpaper No. 145.
Spence, G. (2015).Workplace wellbeing programs: If you build it they may NOT come…because
it’s not what they really need! International Journal of Wellbeing, 5(2), 109-124.
Teehankee, B. (2008). Humanistic entrepreneurship: An approach to virtue-based enterprise.
Asia-Pacific Social Science Review, 8(1), pp. 89-110.
Teehankee, B. (2017, April). Building actionable knowledge for responsible management and
sustainable business practice: The role of critical realism. DLSU Business Research Notes and
Briefings, 5(4), 1-8.
The Google Way of Motivating Employees. (2014, September 25). Retrieved from
https://www.cleverism.com/google-way-motivating-employees/
Tsai, W. & Ghoshal, S. (1998). Social capital and value creation: The role of intrafirm networks.
Academy of Management Journal, 41(4), 464-476.
Tsang, E. W. K. (2017a). Philosophy: An under-laborer serving researchers. The philosophy of
management research (pp. 1-17). London: Routledge.
SIYL. (n.d.). Search Inside Yourself Leadership Institute Program Guide
Witte, D.R., Grobbee, D.E., Bots, L. (2005). Excess cardiac mortality on Monday: the
importance of gender, age, and hospitalization. European Journal of Epidemiology, 20(5), pp
395–399
Zachariadis, M., Scott, S. & Barrett, M. (2013). Methodological implications of critical realism
for mixed-methods research. MIS Quarterly, 37(3), 855-879

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JGB 1261
Green Marketing Strategies Applied in Salikneta Farm:
Towards Global Agricultural Environment Sustainability
Dr. Francia Santos, Christopher John Manalad,
Francis Ian Maclang and Shahn De Leon
De La Salle Araneta University-College of Business
francia.santos@dlsau.edu.ph

Abstract

Mother earth's vulnerability to natural calamities was explicated to have been


caused by climate change. Green marketing seems to be one of the major activities under
corporate social responsibility that serves as a platform for environmental programs of
every business organization. Through green marketing practices and by-products,
environmental problems such as the impact of global warming could be reduced gradually.
The literature shows green marketing to have a crucial role in agribusiness and the
environment, hence, the green movement is a big challenge around the globe.

This study focuses on the assessment of green marketing strategies as applied by


the management and personnel of the Agriculture and Veterinary (Agri-Vet) laboratory
farm of De La Salle Araneta University (DLSAU), Salikneta San Jose Del Monte, Bulacan.
All the green marketing strategies specifically reducing wastes, having less packaging
materials, elimination of specific hazardous substances, recycling materials, and
environmental risk management proved their vital importance for environmental
protection. Findings of the study reveal that all green marketing strategies, albeit, creating
real value for the organization and agribusiness environment were observed to have been
adopted by the respondents and methods were used but not that exceedingly applied in the
farm. Implications of this study determined on farm management emphasizes how those
green marketing strategies could be fully enforced for a more sustainable agribusiness and
global environment.

Key Words: green marketing strategies, global, green products,


agricultural environment, sustainability

Introduction

The wide literature on green marketing (GM) showed global environmental issues and all
the worries for the future of our planet and on how we can save it from destruction. It is important
for both businesses and consumers to protect the environment because everyone is a winner from
it. Consequently, businesses need to be responsible and learn how to take care of the mother earth
similar to how she is taking care of people.

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Due to the global warming impact, it is necessary for all organizations to give importance
to the environment. Consequentially, sectors in agriculture and learning institutions are advocating
for the rehabilitation and saving the mother earth through green initiatives and green products. The
real challenge for green movement is ensuring that the product is really green. What caught our
interest is on the green marketing strategies being adopted by an institution whose main activity is
concentrated on the management of farm for the consumption of an academic community.

In the Philippines, Salikneta farm was established to provide students direct access to large
practical teaching and science laboratory in relevant programs such as Agriculture, Agribusiness,
Veterinary Science or Medicine, forestry, food technology and biology programs of De La Salle
Araneta University (DLSAU) and member schools of De La Salle Philippines (DLSP). Salikneta
is producing farm products not necessarily for commercial purpose but the green products are
made available to the De La Salle Philippines community. (saliknetafarm.com).

As stated by Bashir et al (2016), green marketing gained criticisms because of ‘‘green


harvesting.’’ Organizations gain short-term cost savings in “reducing packaging, increasing energy
efficiency, greening their supply chain, using life-cycle pricing approaches…designing products
for disassembly and selling products at premium prices without perceived added value by
customers.” Those strategies “do not address the issue of long-run sustainability” (p.4). Thus, by
adopting green practices, this would guarantee superiority over competitors. Firms that offer green
products, like Salikneta, will be appreciated and eventually will outperform others. (Mehraj &
Qureshi, 2014).

The Earth Security Group (n.d.) identified investing in agriculture as one best way to
alleviate poverty and improve food security. Thus, organizations must be pressured to “assure their
stakeholders that their business priorities are aligned with a holistic approach to sustainable
agriculture...” (p.4). this paper aims to narrow the research gap by assessing respondents’
perception of green marketing strategies as applied in the laboratory farm. Descriptive analysis
was further validated by personal observation of researchers and documentary analysis. The results
of this study provided recommendations to Salikneta management to improve the green activities
under each element or strategy in sustaining agribusiness. We don't think we can get any better
agri-business site in the Metro than Salikneta Farm that offers green products. Moreover, just like
the management of DLSAU and DLSP, we could see the potential of this farm based on its
environmental structure and rapid development. Hence, investment in agriculture connotes an
application of green marketing strategies which is significant for long-term agricultural
environment sustainability. The global sustainability of the agricultural environment framework
generated from the triangulation of analysis serves as the valuable contribution of this study in the
literature.

1.1 Agribusiness and Green Products

There are wide business opportunities in agriculture. The main job of farmers is in
cultivating crops and livestock raising for food. These farmers are the so-called ‘first ecologists’
who understands the benefit of nature for sufficient and abundant food production (Dover &
Talbot, 1992).

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The term green product refers to eco-friendly products or environment products. The main
compositions of products are also “environment-friendly and capable to recycle and produce
another product.” (Alsmadi, 2007, p.342). With the use of green products, it is believed that
consumers could maintain healthy living in a good environment.

Firms should realize the importance of producing green products. An early study of Chen
(1994) encouraged all organizations, including agribusiness sectors, to work as one community for
the betterment of the society and future generations. It is much of significance to practice the
minimization of wastes which leads to sustainability. Vinodh and Rajanayagam (2010) stated that
green products serve to decrease environmental impact through careful planning in the production
process and by controlling the flow of environmental wastes.

Many industries have benefited by implementing their green products on their businesses,
and it resulted in many aspects like cost saving and improved productivity and product
quality (Chiou et al., 2011).

Quality is a vital factor in buying environmentally friendly products. Usually, green


products are perceived to have high quality (Rex and Baumann, 2007). However, Cosma et al.
(2015) pointed out that green companies must be explicit in emphasizing how their green products
are produced so as to support agribusiness and protect the environment.

1.2 Green Marketing and Strategies

There are varied definitions of green marketing. As defined in the study of (Bashir et al
2016), Green Marketing “can be a very powerful marketing strategy when it’s done right” (p.2).
Thus, green marketing can refer to a firm’s products and services that promote the protection and
preservation of the natural environment.

In every business and industry, green marketing is regarded as a major component of


corporate social responsibility programs. Environmental and human problems could have been
addressed through green products. However, research showed that people are not totally convinced
about the sincerity of the companies in using green marketing as their strategy (Ottman, 2011).

Literature confirmed the application of green marketing strategies (GMS) for related
activities in environmental protection. The green marketing strategy is focused on environmental
activities throughout the value chain on the company (Taghian, et.al, 2015). It is also defined as a
kind of reciprocating action to satisfy the demands and needs of consumers. Therefore, green
marketing should come up with strategies in minimizing damage to the environment while
satisfying the needs and demands of customers (Kirgiz, 2016).

Sao (2014) stated the importance of adopting a green marketing strategy based on the
following: Opportunities that could open doors for organizations to increase profit; government
pressure; competition; and social responsibility. On the other hand, Bashir et al (2016) there are
two strategies, the reactive and proactive green marketing strategies. The first one is less expensive
and less risky while the latter strategy would require more resources.

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Globalization requires efficiency strategies. In the literature, there are five potential green
marketing practices that can help the green firm to sustain its green products: reducing wastes,
having less packaging materials, elimination of specific hazardous substances, recycling life after
life and environmental risk management.

Reducing Wastes. It should be the practice of green companies to reduce wastes. Instead
of disposing resources of the environment, why companies just don’t appreciate them? Those
wastes can be efficiently utilized into a more profitable venture by producing green products
instead of disposing of them. (Staines, 1995)

Less packaging materials. In this green marketing strategy, businesses tend to do


packaging materials that would lessen the costs of production. Hence, even in agribusiness, it is
worth minimizing unnecessary packaging. Recycling of wastes as well as reducing packaging
materials is made possible for efficiency (1995).

In markets with low recycling rates, lightweight packaging works effectively (Szacky,
2015). Less material used in product packaging means less waste in landfills. However, this kind
of efficiency strategy is construed as best only for short-term sustainability, the real long-term
implications of green movement require thorough evaluation, particularly the lightweight
packaging (2015).

Elimination of specific hazardous substances. This strategy refers to those things that may
affect the farm and its produce. There's a necessity to ensure the safety of raw materials needed
and cleanliness of the environment. Examples of hazardous substances are chemical ingredients,
toxics, flammable liquids, and gases substances. Better enough, firms should find an alternative
processor method in making that particular substance as a replacement. Elimination of hazardous
things is a must on the farm because it can affect the whole output. (Schulte et al., 2013). Moreover,
the authors have argued that it is imperative to realize and promote the advantages of sustainability
of green marketing, green processes, and the manufacture and use of green products. Furthermore,
relevant food security, well-being, and green initiatives provide a synergy that will benefit society
and the whole world (2013).

Recycling materials. Recycling basically involves activities that convert and design
recyclable materials as new or renovated materials for another new purpose. The raw materials
which originate from natural resources are used in the production of goods. (Schenker, 2018).

Researchers have recognized the significant value of recycled materials and the need to
sustain environmentally safe materials. Recycling of papers, plastics, etc., is a safe activity and
harmless to the environment (Gbadeyan & Omolekan, 2015).

In the study of Ehrenberger (2013), recycling materials is an efficient and effective way of
making the life cycle of a product a long-lasting one. A new product can be developed from this
efficient strategy.

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Environmental risk management. The works of Cheben et al. (2015) gave emphasis on the
environmental aspect of sustainability which is determined by organization size and the economic
system where it operates.

An earlier study (Anderson, 1999) posited that environmental risk management is a


responsibility but contributes to organizational success. This strategy will help the organization to
handle more risk confidently and accurately. Environmental risk is really unavoidable, but every
organization can keep on employing strategies and practices that provide solutions to
environmental hazards.

Indeed, there is no one best single approach to fulfill the diverse areas of a sustainable
environment. Therefore, it is a must for every organization to make an important decision. Jardine
et al, (2003) recommended that “adaptability and practical insights are the best ways to effectively
make an appropriate decision.”

1.3 Agricultural Environment Sustainability

Sustainability was defined by the United Nations (UN) Brundtland Commission as a


“means of achieving the needs of the present without the risk of the future generations to meet
their own needs” (UN, 1987).

Based on Banaguas and Lorica’s (2012) report, “DLSAU released a total of 65,000 kg
equivalent of CO2 into the atmosphere, a concentration that is nominal relative to the CO2
emissions in the countryside setting." (Para 1) These carbon emissions released in the atmosphere
is said to be the greatest contributor to climate change. Hence, there is a necessity to sustain green
production processes in an agricultural environment.

The problems and issues identified in the agribusiness and global environment seems to be
multifaceted, but the unified strategies and synergism globally will not just aid the world to become
greener, but it will help achieve bottom line of “becoming economically, socially as well as
ecologically sustainable” (Bashir et al. 2016, p.9).

The literature evidently showed the global need to protect the agricultural environment and
established demands for the long-term sustainability of the global environment, particularly in
agriculture. Agribusinesses are primarily responsible for carrying out green ways to protect the
agricultural environment globally. Therefore, it is imperative to conduct this study in the local
farm which serves as the laboratory farm for agriculture and food security of a research institution.
This study is justified since the results and implications of the study would be relevant globally in
agribusiness in terms of knowledge generation, professional application, and contribution in the
body of literature.

The Sustainable Environment Framework

The triple bottom line of corporate social responsibility emphasizes the three dimensions of
sustainable development. Definitions of sustainability have been expounded and embraced ideas

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of ‘fairness and interdependence’ between countries and peoples of the world (Hall, 2000 cited in
Adams et al., 2006). Scholars (Lambushchane et al, 2005; Hall 2000; Marchetteni et al., 2003)
identified the following dimensions: environmental, economic, and social as the three most
common pillars of sustainability (cited in Adams et al, (2006).

2.1 Elements of Environment Sustainability

Central to the dimensions of sustainability is environmental sustainability. Sustainable


agriculture and its practices are considered factors in the maintainability and manageability of the
farm.

environment
protection
SUSTAINABILITY

economic
growth

Figure 1: Three Core Elements of Sustainable Development (UN, 2018)

The value of sustainability focuses on more engaged employees, more efficient operations
and use of resources, bigger bottom-line savings, and profits and making the business case for
energy-saving initiatives. All organizations have their specific purposes in agribusiness towards
sustainability.

2.2 Dimensions of Sustainable Environment

UN’s 2030 Agenda for Sustainable Development called for immediate action from
countries all over the world emphasizing environmental sustainability. The figure below illustrates
sustainable environment dimensions: climate action, clean water and sanitation, life below water,
and life on land (UN, 2018).

climate action

clean water and


sanitation
SUSTAINABLE
ENVIRONMENT
life below water

life on land

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Figure 2: Sustainable Environment Dimensions (UN, 2018)

Environmental sustainability, as cited in Adams et al. (2006), is regarded as the “crux of


sustainable development as, without a healthy productive natural ecosystem, there will be no
agricultural, economic or social sustainability”. (p.85).

Empirical development of the relationship between marketing strategy and adoption of


sustainability had been established in the “transition economy”. Research scholars showed the
links between marketing strategy and the environmental aspect of sustainability (Cheben et al.,
2015, p.856)

Sustainable green marketing highlights the features of green products in order to capture
the market and convince them to patronize that product or service (Cosma et al., 2015). An
environmental based marketing strategy which was highlighted in the contemporary studies
(Cosma et al 2015; Cheben et al 2015) served as the empirical grounding for this study.
The main objective of the study is to determine the extent to which the management, staff,
and students of Salikneta Farm apply the green marketing strategies as perceived by respondents
in terms of greenways: Reducing waste; having less packaging materials; elimination of specific
hazardous substances; recycling materials; and environmental risk management. This study has
an assumption that all respondents are presumed to be well informed of the green practices and
strategies of the farm.

Methodology

The assessment of green marketing strategies (GMS) applied in Salikneta was probed through
the green activities and practices of the essential people behind the institution’s laboratory farm.
A researcher-made questionnaire adopted in this study was validated thru item development of
dimensions of GMS and its indicators. The instrument was pretested to a subset of the population
in the Agri-Vet school in Salikneta. Statistical reliability test was calculated which resulted in a
lower Cronbach’s Alpha coefficients. Finally, we cleaned the item questions which indicated a
total of Chronbach’s a= .94, indicating excellent reliability (Kilic, 2015). Finally, we reviewed
repetitive items to suit highly acceptable reliability results. A descriptive method was utilized in
this study. Statistical treatment of data was performed using z-Test since this study has an
assumption that the population and sample have a normal distribution. Analysis of variance was
utilized to test the null hypothesis that there are no significant differences in the mean scores of
respondent groups. The descriptive assessment was validated further by the researcher’s
observation on the green practices at Salikneta, secondary data, and documentation on green
marketing strategies and environmental sustainability. The study is limited only to describe the
respondent’s perception regarding the GMS as applied and practiced in Salikneta Farm.

Discussion of Results

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The success of green marketing activities centralized on the efforts and qualities in any business
organization’s (Khan & Ahmad, 2015). This study presents the analyses and interpretations of data
obtained through a survey of the people behind Salikneta farm and products. There is a total of 75
respondents encompassing management, personnel or staff, and students of the farm with a 100
percent response rate.The profile of respondents according to stakeholder position or occupation
such as students, staff, and professors is presented in the table (see Appendix A). Based on the
position or occupation of the respondents, the majority of them are student scholars of the Agri-
Vet Science Institute in Salikneta with a frequency of 45 (60%). As scholars, they are also helping
in the productive activities and maintenance of the farm. The staff got a frequency of 18 (24%),
and lastly, the professors who are also serving as administrators had a frequency of 12 (16%).

Table 1
GMS 1: Reducing Wastes

Std. Percentile
Indicators Mean Deviation Z rank % Ranking
1. Prioritize waste reduction 3.84 .772 0.207 41.8 3
such as leftovers (waste
minimization)
2. Replace disposable with 3.53 .875 0.537 29.56 5
reusable utensils/items
3. Disposable utensils are 3.73 .827 0.326 37.22 4
properly disposed in a
segregated trashcan as bio-
and non-biodegradable items.
4. Hand over wastage 4.37 .693 -0.534 70.33 1
(vegetables, etc.) to the animal
department
5. Minimize waste products 3.97 .900 0.033 48.68 2
and other wastage
Overall Mean 3.89 0.813 0.114 45.52
Note: The 5-point Likert Scale: 4.3-5 highly observed; 3.5-4.2 observed; 2.7-3.4
maybe; 1.9-2.6 not observed; 1-1.8 definitely not observed

The highest percent rank category is “Hand over wastage (vegetables, etc.) to the animal
department” with 70.33 percent. This implies that(N=70) of the respondents who answered under
this item falls below -0.534 standard deviation below the standard/benchmark of the 5-point Likert
Scale.

The indicator "Hand over wastage to the animal department" got (M=4.37, SD=.693) is highly
observed as an applied strategy in the farm. The practice of "No wastes possible” is being applied
in view of the fact that animals in the farm eat plants and vegetables.

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The least percent rank category is “Replace disposable with reusable utensils/items” with
29.56 percent. This implies that (N=30) of the respondents who answered under this item falls
below 0.537 standard deviations above the benchmark of the 5-point Likert Scale.

This result indicates that the mean rating of 3.53 (SD=.827) for this category and the mean scores
for other items are applied but not exceedingly as handing over wastage to feed animals.

The table below shows the respondents' assessment of having less packaging materials
in terms of the following indicators. Overall, 37.98 percent of the respondents (N=38) who
answered the having less packaging materials falls below 0.412 standard deviations above the
standard of the 5-point Likert Scale. The highest percent rank category is “Make packaging
and labeling more simple” with 52.31 percent. This implies that (N=52) of the respondents
who answered under this item falls below -0.058 standard deviation below the benchmark of
the 5-point Likert Scale.

Table 2
GMS 2: Having less packaging materials

Std.
Deviatio Percentile %
Indicators Mean n Z rank Ranking
1. Use reusable drinking 3.99 .115 0.087 46.53 2
bottles instead of disposable
ones
2. Buy in bulk, use 3.76 .803 0.299 38.25 3
containers from the farm
3. Do away with 3.51 .844 0.581 28.06 4
unnecessary packaging
4. Make packaging and 4.05 .868 -0.058 52.31 1
labeling simpler
5. Encourage buyers to 3.27 1.07 0.682 24.76 5
bring their own bags or use
reusable bags

Total 3.72 0.74 0.412 37.98


Note: The 5-point Likert Scale: 4.3-5 highly observed; 3.5-4.2 observed; 2.7-3.4
maybe; 1.9-2.6 not observed; 1-1.8 definitely not observed

The least percent rank category is “Encourage buyers to bring their own bags or use
reusable bags” With 24.76 percent. This implies that (N=25) of the respondents who answered
under this item falls below 0.68 standard deviations above the benchmark of the 5-point Likert
Scale.

Salikneta Farm got an overall mean rating for the category, having less packaging
materials, 3.72(SD=.74) which indicates that people in the farm are practicing the greenways.

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As shown in Table 3, the respondents' assessed the elimination of specific hazardous


substances in terms of the following indicators. Overall, 47.45 percent of the respondents (N=47)
who answered the eliminations of specific hazardous substances falls below 0.06 standard
deviation above the standard/benchmark of the 5-point Likert Scale. The highest percent rank
category is “Avoid applying chemicals right after heavy rainfall” with 54.97 percent. This implies
that (N=55) of the respondents who answered under this item falls below -0.125 standard
deviation below the standard of the 5-point Likert Scale.

Table 3
GMS 3: Elimination of specific hazardous substances

Std.
Deviati Percentile %
Indicators Mean on Z rank Ranking
1. Safely handle agrichemicals 3.93 .875 0.081 46.77 3

2. Dispose of containers and 3.79 .949 0.221 41.25 5


leftover chemicals properly
3. Apply only the right amount 4.01 .814 -0.012 50.48 2
of chemicals
4. Avoid applying chemicals 4.11 .879 -0.125 54.97 1
right after heavy rainfall

5. Wear proper personal 3.85 .954 .157 43.76 4


protective equipment
Total 3.94 0.89 0.06 47.45
Note: The 5-point Likert Scale: 4.3-5 highly observed; 3.5-4.2 observed; 2.7-3.4
maybe; 1.9-2.6 not observed; 1-1.8 definitely not observed

The least percent rank category is “Dispose of containers and leftover chemicals
properly” with 42.25 percent. This implies that (N=42) of the respondents who answered under
this item falls below 0.221 standard deviations above the standard/benchmark of the 5-point
Likert Scale.

GMS4: Recycling Materials

Respondents’ assessed recycling materials in terms of the following indicators. Overall,


47.64 percent of the respondents (N=48) who answered the recycling materials fall below 0.06
standard deviation above the standard of the 5-point Likert Scale. The highest percent rank
category is “Reinvent, redeploy and recreate used materials” with 50.48 percent. This implies
that (N=50) of the respondents who answered under this item falls below -0.012 standard
deviation below the benchmark of the 5-point Likert Scale. The least percent rank category is
“Subject waste materials to recycling through the life cycle assessment method” with 43.92

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percent. This implies that (N=44) of the respondents who answered under this item falls below
0.153 standard deviations above the benchmark of the 5-point Likert Scale.

Researchers’ observation indicated that respondents deeply understood the waste reduction
advantage regardless of their occupation. In reducing wastes, Chizuru and Toshie (2005) found
out significant relationship between the environmental issue and individual lifestyle.

Life in the farm requires a deeper analysis of lifestyle and orientation on the issues of
environment and global change.

Table 5
GMS 5: Environmental risk management

Std. Percentile
Indicators Mean Deviation Z rank % Ranking
1. Manage environmental risk 3.89 .709 0.155 43.84 5
effectively
2. Minimize waste products and 3.93 0.704 0.099 46.06 2
other wastage
3. Treat sewage water prior to 3.63 .818 0.452 32.56 8
release in canals, streams, rivers
4. Maintain appropriate treatment 3.89 .953 0.115 45.42 4
facilities for treating wastewater

5. Keep waste away from bodies of 3.80 0.822 0.243 40.4 7


water to avoid getting canals
clogged
6. Conduct inspection visits 4.01 .878 0.011 49.56 1
regularly to check on surroundings
7. Put up flood control structures to 3.92 .731 0.109 45.66 3
drain water, ease the flood
during typhoons
8. Comply with sanitation 3.85 .783 0.191 42.43 6
measures imposed by the
government
Overall Mean 3.93 0.76 0.17 43.24
Note: The 5-point Likert Scale: 4.3-5 highly observed; 3.5-4.2 observed; 2.7-3.4
Maybe; 1.9-2.6 not observed; 1-1.8 definitely not observed

Table 5 shows the respondents’ assessed environmental risk management in terms of the
following indicators. Overall, 43.24percent of the respondents (N=43) who answered the

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environmental risk management falls below 0.17 standard deviation above the benchmark of the 5-
point Likert Scale. The highest percent rank category is “Conduct inspection, visits regularly to
check on surroundings” with 49.56 percent. This implies that (N=50) of the respondents who
answered under this item falls below 0.011 standard deviations above the standard of the 5-point
Likert Scale.

This result (M=4.01; SD=.878) indicates that the staff members of Salikneta farm observed
the management conducts an inspection and visits the farm area regularly.

The least percent rank category is “Treat sewage water prior to release in canals,
streams, rivers” With 32.56 percent. This implies that (N=33) of the respondents who answered
under this item falls below 0.452 standard deviations above the standard of the 5-point Likert
Scale. This result can be attributed to the farm’s general structure and water facilities system.

Overall, the mean score of 3.93 (SD=.76), environmental risk management is currently
being applied on the farm. Based on the researchers’ observation, the presence of a supervisor
has an effect on the implemented green practices of the farm. This could be attributed to the
‘halo effect’ when being supervised in farm activities.

4.1 Green marketing practices of Salikneta Farm

All of the items pertaining to green marketing practices indicated to have been applied by
the personnel at Salikneta farm. Among these green marketing strategies leading toward
sustainability, the use of recycling materials is the most observed GMS in Salikneta farm.

Generally, results have indicated similarities in the literature that recycling of materials is
a safe activity and environmentally harmless practice. Respondents from Salikneta valued the
essence of environmentally safe materials. This result can be based on the work of Gbadeyan and
Omolekan (2015) which emphasized that recycling materials have a significant value for
environmental protection.

4.2 Test of significant difference in the assessed green marketing practices when stakeholder
position or occupation is considered

On the account of researchers’ observation, people behind the operations of the farm are
already applying the green marketing strategies but have not maximized totally their capacity when
it comes to the full application of the green marketing strategies. This was evidenced by the highest
ranked (M=3.97; SD=0.73) application of the strategy, recycling of materials.

The computed F-values of the green marketing strategies applied in Salikneta has indicated
that the following practices: reducing the waste, having less packaging materials, elimination of
specific hazardous substances, recycling materials, and environmental risk management, p-values
greater than 0.05. Therefore, the null hypothesis is accepted and interpreted that there is no
statistically significant difference in the assessed green marketing strategies of Salikneta farm
when the occupation of respondents is considered. Assumptions made for each of the variables of
green marketing practices regardless of the occupation were met. The “Rec-Average” got the

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highest significance with the equivalent value of 0.83 which means that all indicators under
recycling materials showed an oftentimes observed among other variable indicators. The majority
of probability associated with Levene’s Statistics is less than the level of significance, hence, we
failed to reject the null hypothesis and concluded that the variance was homogeneous.

Overall results reveal the different green marketing strategies observed as being applied by
the management and personnel of Salikneta farm. The findings we found indicated effectiveness
in the implementation of these green marketing practices leading to sustainability of the farm
environment such as reducing wastes, lessening packaging materials, eliminating specific
hazardous substances, recycling materials, and environmental risk management proved to be
imperative for environmental protection. However, on the account of researchers’ observation and
perception of staff respondents, Salikneta Farm applies these green marketing strategies, but the
initiative has not yet reached the maximum level.

Conclusions

Findings of the study revealed that all green marketing strategies, albeit, creating real value
for the organization and agribusiness environment were observed to have been adopted by the
respondents but methods were not that highly practiced by the subject farm. Implications of this
study determined on Salikneta farm management emphasize how those green marketing strategies
could be fully enforced for more sustainable farm business and environment.

Results of this study have shown that the subject farm which markets green products
practically applies the green methods and strategies but more efforts are needed towards the
optimum level of application. Therefore, what else can be expected from firms who do not
manufacture green products?

5.1 Practical and policy implications of this study. DLSAU Agrivet Science Institute
caters to 100% scholars, free board and lodging. Compliance with quality food production
processes and regulations could open greater opportunities for income generation in the local and
international markets. In this local case, not so much pressure is put on the subject farm since
products are only distributed to its target market for value appreciation of the Lasallian community
as research laboratory outcomes in Agriculture and Food Technology and not really for
commercialization.

However, no organization is indispensable just like any agribusiness engaged in food


production and distribution. FDA certification guarantees the quality and safety of the food
products and its facility. It is a requirement of the government agency that regulates the flow of
food products and safe food processing facility in the Philippines (fda.gov.ph). The green
marketing strategies can be fully enforced and it is best for farm products to be well promoted to
the consuming public once FDA registered.

For strategic greening of farms, management should develop chemical management


methods to ensure safety and security measures for all hazards connected with utilization and
transfer of chemicals inside the working environment in the farm. Likewise, implications this study
emphasized that no organization is indispensable which stemmed from the Ecological Solid Waste

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Management Act (RA 9003). Thus, everyone should take their part in protecting the global agri-
business environment.

Global implications of findings strike on the agricultural environment in a disastrous state


which could end in devastating future generations if organizations will not do their responsibility.
In figure 3, all organizations are indispensable, thus, they should aspire for optimal implementation
of the sustainable green strategies as presented in this emerging framework.

Functional Farm Green


Strategy
Strategic Greening
Handing over wastage
to feed animals

New Green Product


Produce another product Development
from recycled wastes

Figure 3: Framework for Agricultural Environment Sustainability

Critical to this study is on the global sustainability aspect of the agricultural environment
which affects directly businesses in developing countries, like the Philippines. A valuable
contribution is illustrated as a simplified framework for green farm strategies for the global
sustainability of the agribusiness environment. This is aligned with the principle of safe and
healthy agriculture and food systems which has an objective of “promoting the safety, quality, and
nutritional value of food and agricultural products; and supporting animal health and welfare, and
plant health, to sustainably increase productivity, product quality, and safety.” (Earth Security
Group, n.d., p.24). This principle also aims to promote the accessibility to safe and nutritious food
products for consumers which can only come from a safe and sound agricultural environment.

The research era has to make new contributions in the literature (Liu, et al., 2012)
Implications for environmental sustainability is anchored on the conclusions drawn from this
study. Implications for Salikneta management cannot be measured by a single approach. No
organization is considered indispensable, thus, everyone should take their part in protecting the
global agri-business environment. Jardine et al., (2003) strongly recommend, adaptability and
practical insights must be applied to make the best decision for choosing strategies. In turn, this
will lead to the attainment of agricultural global agricultural environment sustainability.

The overall implications of this study directly address global issues for sustaining an
agricultural environment which is also aligned with another impactful principle identified by the

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Earth Security Group (n.d.) as “Assess and address impacts and promote accountability.” This was
consistent in the literature and findings of this study that all organizations are accountable for the
environmental safety and protection of Mother Earth.

Limitations and Recommendations for future research


The study is limited only to the specific applied green marketing strategies. The uniqueness
of strategies must be the focal point of future researchers. Moreover, another direction of future
research should focus on the development of new green marketing practices that will enhance farm
sustainable development and minimize eco-harm.

Action research on proactive green marketing strategies can be the chosen direction of
scholars in organizations. Albeit more expensive and risky, it would be worth conducting a study
on proactive green strategies that can be long-term and sustainable as stressed by Bashir et al,
(2015). Future research may be explored on the different levels of green marketing strategy such
as the strategic or corporate level, quasi-strategic or business level and tactical or functional level
(Kumar, 2016).

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JGB 1208
Go Go Going Green?
Rajan Sadhwani and Jose Luis Legaspi
De La Salle University, Manila
rajsamartin1@gmail.com

Abstract:
Programs and policies undertaken by companies in recent times have put much attention
to sustainability and related green initiatives. From cutting down consumption, to establishing
greener supply chains, to improving production efficiency, there are many forms in which
companies address the issue. Among these include the use and promotion through marketing of
green and eco-friendly initiatives of their products or services in an attempt to portray themselves
as stewards of sustainability. In this paper, we attempt to analyze and discuss case studies of
companies who have undertaken green marketing initiatives. The paper tackles the various
implications of these to the corporation and also consumer. Further, the paper attempts to
highlight instances wherein the weakness of the system is imposed. The paper explores recent
developments of various green business and marketing related approaches to operations and
strategy of the business. An extensive literature review is undertaken to properly contextualize the
issue and relate these to the presented studies. The paper finds that the general use of green
marketing initiatives have sparked greater discussion among consumers on what and what not to
buy. This increase in awareness can be seen in many industries where consumers now seriously
consider the environmental implications of their actions and hence their purchases. Companies
have found ways to better showcase themselves and take the lead by promoting and branding
themselves to capture this market demand, whether in actual or complementing products or
services. The study recommends that greater institutionalization of sustainability within the
corporation is an important aspect of ingraining in the culture of environmental and social
responsibility within the entire business and its stakeholders. In particular, a strong green
marketing campaign plays an important strategic role for corporations to adopt. These in turn
ultimately lead to better outcomes for the business, consumers, and environment.
Keywords: Green Initiatives, Marketing, Environment

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JGB 1236
Globalization through local culture integration: A study on ABC’s
cultural alignment as a necessary condition to globalization
John Michael Hernandez and Leo B. Malagar
De La Salle University, Manila
john_michael_hernandez@dlsu.edu.ph
leo.malagar@dlsu.edu.ph

Abstract
ABC Healthcare Services Inc. is one of the leading providers of health care billing and coding
of insurance claims for healthcare facilities in the United States of America. For more than five
(5) years ABC delivers efficient services to hospitals and healthcare facilities by coding the
patient’s insurance claims for billing to the insurer.

In its bid to efficiently deliver its services to its customers, ABC goes global by outsourcing its
coding of insurance claims to developing countries including the Philippines. The Philippines is a
strategic country to house its coding facility given its wide human resources of healthcare
practitioners such as nurses and allied professions.

Having such a strategy, ABC was challenged by implementing its policies and guidelines
in the Philippines especially in human resources mainly due to cultural differences. This challenge
is very critical since it is business operation relies heavily on the knowledge and skills of its people.

This study aims to develop a global approach of ABC Healthcare Services Inc. by
becoming local to bridge the gap between the culture of its human resources in the Philippines and
the core values, principles, policies, and guidelines of its parent company in America.

It will develop a conducive working environment for Filipinos under ABC while delivering
efficient services to its customers. The researcher believes that to become global, ABC should be
local to understand its most important asset – its people.

Key Words: globalization, local culture integration, going global by being local

Introduction
ABC Healthcare Services Inc. is one of the leading providers of health care billing and
coding of insurance claims for healthcare facilities in the United States of America. For more than
five years, ABC delivers efficient services to hospitals and healthcare facilities through health
information management and coding of patients’ insurance claims for billing to the insurer.

In order to fully fulfill its client services, ABC needs people who have the knowledge and
capability to deliver its services to maximum quality. And five years ago, the organization started
its bid to globalization by outsourcing its operations to the Philippines. Outsourcing has been

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regarded as one robust trend in human resource management for the advantages including but not
limited to the lower financial cost, access specialized expertise, and the flexibility to demand
measurable services (Belcourt, 2006).

As ABC’s services require employees to have at least an advanced knowledge of


healthcare, it was a strategic action for the organization to transfer most of its operations to the
Philippines which is a household name among the producers of high caliber healthcare and allied
professionals. The Philippines has also been one of the top producers of healthcare professionals
abroad and has been tipped to advantage in medical transcription roles for being able to speak the
language (Arunanondchai & Fink, 2007).

However, as the organization matures together with the increased demand of hospitals and
facilities for improved and consistent quality, and with further accounts acquisition, ABC has not
been immune to overarching challenges that faced its course of operations. Attrition rate and a
percentage kept increasing which brought, if not much more, an equally greater challenge for the
organization to hire replacements, fill-in operationally needed knowledge, and keep the production
at a quality. ABC is seemingly left wondering how and why after five years, these previously
minimally considered challenges, grew enormously concerning.

The researchers believe in the inherent tension existing between the corporate culture and
employee culture dynamics that led to present corporate challenges. Furthermore, the researchers
believe that cultural alignment is an important condition to businesses’ goal of scaling globally as
Kate Gerasimova (2016) identified specifically that helping organizations appreciate their cultural
differences will inherently help the members realize the best approach to work. In lieu of this
study, the researchers aim to assess the current cultural alignment of ABC as a necessary condition
for globalization.

Culture is that of the organization relating to its values, principles, policies, and guidelines,
and that of the employees. In the cultural factor published by Harvard Business Review, the
organizational strategy should go along harmoniously with the company culture for its plans to be
carried out effectively (Groysberg, Price, & Yo-Jud Cheng, 2018). "An organizational culture can
support or undermine its business strategy" (Spencerstuart, 2019).

Through this study, the researchers will be able to identify the current cultural alignment
status of ABC and its employees based on the perception of the latter, being the active, viable,
largest and most important asset of the organization. Most importantly, the researchers believe that
the result of this study will be able to help provide direction for the organization’s core values,
principles, beliefs, and guidelines to be integrated carefully with the surfacing culture style
amongst its employees, thus creating and initiating a comprehensive organizational culture style
which leverages the organizational goals with employees’ commitment.
Framework
Theoretical Framework

To properly guide the researchers in determining the surfacing local culture of ABC’s
employees and the current culture of the organization as a whole, we used Spencer Stuart’s Cultural

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Alignment Framework (Figure 1) which was further explained as an Integrated Culture Framework
in Harvard Business Review’s “The Leader’s Guide to Corporate Culture”.

Defining Culture

Culture is an implied social organization that molds attitudes and behaviors in various
ways. Its norms define the things that are encouraged and rejected which when aligned properly
with personal values, drives, and needs may unleash an enormous power to nurture an
organization’s capability to thrive (Groysberg et. al, 2018).

Groysberg ET. Al (2018) further explained that culture can easily be adaptable to changing
opportunities and demands, and it can easily integrate the goals of the organizational leaders with
the knowledge and capability of its employees.

Through studying the works of Edgar Schein, Shalom Schwartz, Geert Hofstede, and other
scholars, Groysberg ET. Al (2018) have identified culture's four generally accepted attributes
including shared, pervasive, enduring and implicit.

The shared attribute describes culture as not a single individual attribute but a shared
behavior, values, and assumptions that are implied through the norms and expectations of a group
(Groysberg et. al, 2018).

Groysberg ET. Al (2018) define culture as pervasive by being a combination of physical


and unseen aspects of behaviors, mindsets, motivations, and assumptions that permeates multiple
levels of the organization.

The enduring attribute portrays culture as developing through collective learning


experiences through a long period of time (Groysberg et. al, 2018). He also explained through the
selection-attrition model introduced by Benjamin Schneider that “people are drawn to
organizations with characteristics similar to their own; organizations are more likely to select
individuals who seem to “fit in”; and over time those who don’t fit in tend to leave” (p. 4).

Lastly, the implicit attribute depicts culture as a silent language that is commonly
overlooked, is incessant hardwired to people, and which people recognize and react to intuitively
(Groysberg et. al, 2018).

Eight Distinct Cultural Styles

The Cultural Alignment Framework (Figure 1) is engrained on the idea that the existing
inherent tension between two critical dimensions – [1] attitude toward people, independence to
interdependence; [2] attitude toward change, flexibility to stability – of organizational dynamics
must be addressed by the organization and the employees (Spencerstuart, 2019).

Likewise, Groysberg ET. Al (2018) referred to the critical dimensions as people


interactions and responses to change respectively. They posited that in the dimension of people
interactions, cultures that fall towards independency emphasize autonomy, individual action, and

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competition while the cultures leaning towards interdependency value more integration,
relationships, and group coordination.

On the other hand, in terms of flexibility and stability as a dimension of response to change,
cultures that fall on the former prioritize innovation and long-term orientation while cultures
leaning towards the latter emphasized control structures and hierarchical reinforcement
(Groysberg et. al, 2018).

Through the insights about people interaction and response to change, eight styles that are
applicable to both organizational cultures and individual leaders emerged.

Figure 1. Culture Alignment Framework


Source: Spencerstuart (2019)

Caring fosters a cooperative environment where leaders emphasize sincerity and


teamwork, and employees are united by loyalty (Groysberg et. al, 2018).

Purpose exemplifies an altruistic, tolerant and compassionate environment where ideas are
shared, and employees are united to do good for the long-term future of the world (Groysberg et.
al, 2018).

Learning nurtures leaders who enhance employees' unity through innovation, creativity,
knowledge, and adventure (Groysberg et. al, 2018).

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Enjoyment evokes a fun environment where employees are stimulated through leaders’
spontaneity and sense of humor (Groysberg et. al, 2018).

Results promote a target-driven environment where leaders emphasize goal


accomplishment and employees are driven by merit-based capability and successes (Groysberg et.
al, 2018).

Authority defines a dominating workplace where employees either unite through leaders’
strong control or competitively strives to achieve personal gains (Groysberg et. al, 2018).

Safety emphasizes realistic leaders who plan carefully for anticipated changes and creates
a safe and protected work environment (Groysberg et. al, 2018).

Order cultivates a respectful environment where shared honors and customs are given
emphasis and employees adhere to established rules (Groysberg et. al, 2018).

Groysberg et. al (2018) further explained that one of the most significant features of this
framework is that it is a flexible tool that could identify an individual, leader, employee or
organizational culture style. They also pointed out that no specific culture style is inherently better
than the rest and ultimately each style carries respective advantages and disadvantages.
Furthermore, organizations may have multiple styles varying only on rank or degree (Groysberg
et. al, 2018).

Referring to figure 1, Groysberg et. al (2018) clarified that the styles adjacent to each other,
such as purpose and caring, mostly coexist within an organization. Though not unlikely to occur,
organizations with styles located across opposite poles occurring simultaneously are expected to
require a greater amount of energy for them to be maintained simultaneously (Groysberg et. al,
2018).

Conceptual Framework

Figure 2. Comprehensive Organizational Culture Framework

In order for positive cultural alignment and comprehensive organizational culture to be


fully conceivable, the researchers believe that the surfacing local culture within the organization
has to be integrated relative to the surfacing organizational culture represented by its values and
principles to an extent not sacrificial of the goals of the organization and still respective of the

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important local culture aspects. Whereas to certain degrees, partial or total dismissal of the local
culture will result in a negative cultural alignment.
Figure 2 represents the researchers' conceptual framework which provides a logical
formula for the derivation of positive cultural alignment or comprehensive organizational
culture expressed at the rightmost portion of the figure, through the integration of two important
aspects. The first gear, local culture, is an inner gear representing the outstanding culture present
among the employees. The second gear, organizational values, and principles, is an outer gear
representing the encompassing values and principles of the organization which must still rule over
and provides direction and guidance in the integration of the local culture. The combination of the
local culture and the organizational values and principles will result in positive cultural
alignment, hence, comprehensive organizational culture.

Methodology
The researchers used a single questionnaire for a two-part survey to primarily collect
comparable information among the respondents. The questionnaire was drafted to become a list of
organizational traits and behaviors of leaders and management specific to each culture style which
was rated twice by the respondents based on two different aspects: first, their degree of
commitment respective of the given attribute; second, their rating of ABC's current organizational
culture respective of the given attribute.

The first part of the survey generated the emerging culture amongst ABC’s employees in
terms of their ideal leader and management attribute. The second part, on the other hand, generated
the culture style presently exhibited by ABC as per its employees’ perception. The intersecting
picture of the results depicted the current cultural alignment of ABC and its employees.

Prior to the actual conduction of the survey, a formal letter of intent stating the purpose of the
research and survey was submitted and approved by ABC's chief executive officer. The
questionnaire was then drafted with a consent form as part of its heading. Respondents were
assured of their anonymity and the utmost confidentiality of any of their information.

A total of 269, 75% of ABC’s 358 employees became respondents of the survey. The
results were tallied to a weighted average to come up with a ranking for each aspect of the survey.
The emerging result for each aspect was intersected and compared with the standard culture style
ranking across all industries as per Groysberg et. al (2018).

Discussion of Results
Table 1.

Emerging Local Culture through Commitment Rating


Commitment Rating
Leader and Management Attribute
(Weighted Average)

Caring 4

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Purpose 4
Learning 4

Enjoyment 4
Safety 3.97
Order 3.56
Results 3.44
Authority 2.47

Table 1 shows the result of the first part of the survey. Four adjacent culture styles including
caring, purpose, learning, and enjoyment equally emerged as the most significant culture styles
worthy of employees’ commitment.
This indicates that ABC’s employees significantly value a flexible environment where
leaders sensibly challenge their people’s strengths and innovativeness and equally emphasize
sincerity, loyalty, and sustainable purpose.
Not falling far below the maximum weighted average on second to fifth ranks, are safety,
order, results, and authority respectively.

Table 2.

ABC’s Current Organizational Culture


Commitment Rating
Leader and Management Attribute
(Weighted Average)

Authority 3.43
Results 3.18

Caring 2.82
Order 2.81
Enjoyment 2.42
Purpose 1.75
Learning 1.69

Safety 1.48

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Table 2 shows the result of the second part of the survey. Based on the employees’ perception, the
organizational culture presently exhibited by ABC leans toward authority and results, and caring
and order, which are pairs located at quite a distance from each other.

This indicates that ABC possesses a strongly dominant leadership and management that
are rigidly focused on goal accomplishment. It thus, however, tries to balance that out by
sincerely promoting a sense of teamwork and unity through cultivating respect and loyalty.

Groysberg et. al (2018) provided a general


culture style ranking across all industries,
which described the culture style that is
commonly dominant among all business
sectors, and a culture style ranking per specific
industry.

The researchers came up with an


alignment diagram of the general culture styles
ranking, a ranking for professional services
industry to which the researchers designated the
niche of ABC, and the ranking of the results of
ABC’s local employee cultures and present
organizational culture.

Figure 3. Across Industry Comparison

The overall picture of the alignment result, shown in figure 3, is not a straight flowing
connection but a volvulus picture of the degree of variance of all four rankings.
Breaking down the diagram for ABC’s current organizational culture and the general
culture for the professional service industry, results, caring and order are all included in the top
four dominant culture style. However, ABC’s safety, learning, and enjoyment moved two positive
or negative circles when compared to the style rankings for the professional service industry. On
the other hand, ABC prioritized authority way beyond all other industries.

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Figure 4. Ranking Alignment Breakdown

Likewise, the comparison (figure 4) between ABC's current organizational culture and the
emerging local culture amongst its employees saw a big difference, particularly on authority.
Employees would be more committed towards a less dominatingly controlling organization and
currently see ABC as one that is. Likewise, they see learning and purpose as less prioritized by
the organization. They understand that ABC, like all other businesses, values results, order and
caring as evidenced by mere decimal points difference on the actual value, but also prioritizes the
need for purpose, learning and enjoyment to balance the rigid environment crafted mainly for goal
accomplishment.
Conclusions
ABC Healthcare Services Inc. currently has negative cultural alignment with its employees on
the premise of the researchers' conceptual framework where cultural integration of the emerging
local culture is necessary for the organization to conceive a positive cultural alignment, hence, a
comprehensive organizational culture. Therefore, ABC is short on its bid to globalization through
local culture integration, and thus, it will benefit from carefully studying the culture of its
employees and integrating it respectively to its values and principles. Moreover, though it was not
intentionally part of the initial objectives of this study, we have determined the qualities of the
leaders for each respective culture style of the organization. Organizations can, therefore, identify
the attribute of leaders and management it needs to uphold in order to achieve the overall type of
culture it aims for.
Limitations and Recommendations for future research
To date, as businesses have evolved to become more sustainable through becoming more
internationally interdependent, globalization “has become one of the most overused and poorly

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understood words in the English language” (Ferraro, 2002). However, for the sake of this study,
the researchers generated on the idea that in order for an international company to succeed on its
mission in a foreign territory, it has to globalize itself through local culture integration.

Also, due to the complexity of considering a culture by race, the Filipino culture, for
example, the researchers believe that it would not be as effective and applicable integrating than
generating the culture that has emerged and developed already within the organization's
employees. Thus, the researchers defined local culture as being the style and attribute existing
within the people of an organization. Also, the local culture assessment was kept grounded on the
attributes that relate well on the styles normally present and or valued by businesses or
organizations.

Additionally, this study has been substantiated solely on the perception of the employees
for the logical reason that they comprise the majority of the population of the organization and that
their perception generally mirrors the culture projected by the organization.

Furthermore, the researchers recommend future studies to dwell upon the variances on the
degree of local culture integration and its correlational effect on the overall wellbeing of the
organization. And as it is barely discussed in this research, we recommend future studies to dwell
further on researches regarding the attributes of the leaders and people managing the organization
which contributes to the culture it reflects. For they are not innately part of the company upon its
conception, they may or may not be intentionally shaping or affecting the rest of the employee's
view of the company, moreover, their commitment to the organization. Being the implementors
and communicators of strategies and changes within the organization, they have a vital role to
transform and or align the culture to the needs and goals of the organization (Summers, 2018).
References
Arunanondchai, J., & Fink, C. (2007). Trade in health services in the ASEAN region. The World
Bank.
Belcourt, M. (2006). Outsourcing—The benefits and risks. Human resource management
review, 16(2), 269-279.
Gerasimova, K. (2016). The critical role of ethics and culture in business globalization. Retrieved
from https://gothamculture.com/2016/09/29/critical-role-ethics-culture-business-
globalization/
Groysberg, B., Lee, J., Price, J., & Cheng, J. Y. (2018). The leader’s guide to corporate
culture. Harvard Business Review, 96(1), 44-52.
Ferraro, G. P., & Briody, E. K. (2013). The cultural dimension of global business. Upper Saddle
River: Pearson.
Spencerstuart. (2019). Cultural alignment framework – a uniquely powerful tool for aligning
strategy and culture. Retrieved from https://www.spencerstuart.com/what-we-do/our-
capabilities/leadership-consulting/organizational-culture
Summer, R. (2018). The human factor in business strategy: Culture and change management.
Retrieved from http://www.rsibc.com/blog/the-human-factor-of-strategy-culture-and-
change-management

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APPENDIX A
Results Breakdown

Current
Emerging Local
Organizational
Culture Rating
Culture Rating
Traits and Behaviors
Weighted Weighted
Total Total
Ave. Ave.

Caring

Approachable and promotes a harmonious


4.00 3.14
work environment.
Shows genuine positive regard to employees. 4.00 4.00 2.22 2.82
Promotes collaboration among teams and
4.00 3.09
team members.
Purpose
Communicates the organization’s vision and
4.00 1.42
mission effectively.

Concerned with the well-being of employees. 4.00 4.00 1.54 1.75


Unites and forms employees to become
4.00 2.30
socially responsible individuals.
Learning
Welcomes and considers input and feedback
4.00 1.58
from employees.
Molds employees to become innovative. 4.00 4.00 1.37 1.69
Ensures continues learning and development
4.00 2.12
of employees.
Enjoyment

Keen to the need of employees for a safe and


4.00 4.00 2.33 2.42
comfortable work environment.

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It allows for a balance of work and fun in the
4.00 2.46
office.
Sensible and easy to work with. 4.00 2.47
Results

Highly focused on quality. 2.86 4


Ensures that employees are properly
compensated and merited according to the 4.00 3.44 1.55 3.18
work rendered.
Target-driven. 3.47 4.00
Authority
Drives employees’ competitiveness. 2.87 2.46
Authoritative and has strong control of
2.77 2.47 3.84 3.43
decision-making.
Strict on the implementation of changes. 1.77 4.00

Safety
Carefully think things through before
3.91 1.49
application.
3.97 1.48
Briefs and prepares employees for changes. 4.00 1.48
Realistic and plans ahead of changes. 4.00 1.47
Order
Implements a highly structured environment. 2.68 2.82

Encourages unity through cooperation. 4.00 3.19


3.56 2.81
It allows employees to work according to
shared procedures and respects individual 4.00 2.42
customs.

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JGB 1250
Inclusion of Intention among Green Innovation Factors: Do
Expected Benefits and Concern for Environment Matter?
Joy Anne Evaristo
Holy Angel University
joyevaristo101@gmail.com

Abstract
The possibility that green innovation could help resolve climate change and environmental
problems led to this study that aims to identify the current green innovation practices of firms in
Pampanga which is a major contributor to the economic growth of Central Luzon and the
Philippines. It was found that green innovation such as those that lead to green product and process
innovation are being practiced in a moderate level but clustered results showed that most green
innovation practices are only being practiced on the low level. This research also investigated the
factors that influence firms toward green innovation practices. Using ordinal regression, it was
found that a higher level of technological capabilities and organizational capabilities significantly
lead to a higher level of green innovation at p < .05 while a higher level of managerial
environmental concern leads to a higher level of green innovation at p < .10. Market factors,
government regulation, and support and expected benefits do not significantly influence green
innovation. A final model using only the three significant factors showed that all three are
significant at p < .05. This research provides empirical evidence for a resource-based view on
green innovation and contributes to the research gap on green innovation by analyzing the intention
of green innovation through managerial environmental concern and expected benefits. Findings
from the results showed that managerial environmental concern is one of the significant factors to
achieve a higher level of green innovation.
Keywords: Green Innovation, Green Product Innovation, Green Process
Innovation, Stakeholder Theory, Resource-Based View
Introduction
“When nature is viewed solely as a source of profit and gain, this has serious consequences
for society.” – Pope Francis

Global warming is one of the alarming worldwide issues nowadays and Southeast Asia is
the most susceptible to its effects (Lee, Sethupathi, Lee, Bhatia, & Mohamed, 2013). A recent
report from the Department of Environment and Natural Resources (DENR) revealed that ASEAN
countries experience more frequent weather-related disasters and have been highly affected by
climate change for the past 10 years. It also reported that as early as 2009, Philippines has been
warned by the World Bank that it topped the list of countries most vulnerable to storms and last

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2016, the Global Climate Risk Index of German Watch listed the Philippines as one of the four
countries among the 10 nations most affected by climate change from 1995 to 2014. These threats
to environmental sustainability, including pollution and deterioration of natural resources, results
to a growing social awareness (Shu, Zhou, Xiao, & GAO, 2016), that business activities have
adverse effects to the natural environment.
Economic development highly depends on innovation and companies rely on this to
achieve competitiveness, but this has been directly connected to environmental problems (Bossle,
Dutra De Barcellos, Vieira, & Sauvée, 2016). Therefore, if more companies will continue to focus
on the economic benefits of innovation without considering its environmental effect, it could lead
to greater problems which require more costs for firms and the society in general to resolve.
Today there is an emerging research interest that offers a different paradigm on innovation.
There are studies that show that organizations’ innovative activity could help preserve the
environment and natural resources (Cuerva, Triguero-Cano, & Córcoles, 2014). There are some
firms that incorporate sustainability in their innovation strategies to produce products with lesser
environmental impact, to redesign its operations to conserve resources like water and energy or to
lessen waste that may lead to pollution. It is from this context that the concept of green innovation
gained its popularity.
Green innovation implies the development of products, processes or business models
(whether an introduction of a new one or an improvement in existing) resulting to a reduction in
the use of natural resources and emissions of harmful chemicals (Triguero, Moreno-mondéjar, &
Davia, 2013). While it could be the key for firms to take an active role in protecting the
environment, this may involve significant investment and risk if not strategically implemented.
There is also a traditional view that kind of innovation may not yield positive results in firms'
economic performance (Shu et al., 2016). There are also existing debates on what really influence
firms to adopt and successfully implement green innovation (Fernando & Wah, 2017). This could
explain why green innovation may not be that popular in practice particularly among developing
countries where firms tend to be more critical on the short-term return of their investments. Lack
of solid understanding on what are the factors which helped other firms to adopt green innovation
and the risk on investment companies will need to adopt this kind of change may also hinder
companies to green innovation.
Central Luzon, is the most important contributor to the Philippine economy with the fastest
growth among other regions (Gines, 2017). The growing numbers of different businesses
particularly in food, services, manufacturing and other sectors coupled with good spending habits
of the people have attracted major national and global retailers and other investors. Teresita Sy
Coson, the chairperson of BDO Unibank Inc., shared during the 57th GMM of PamCham that
Pampanga is even the major driver of this economic growth (Gines, 2017). With the plans of the
current administration to expand Clark International Airport and Manila-Clark Railroad Project,
more developments can even be expected from Pampanga. Since economic growth can bring in
potential harm to environmental sustainability, this study will focus on the green innovation
practices in Pampanga. This is also in line with the government plan of setting Clark as the Green
City. This trend in Pampanga is similar to other areas around the globe which are being

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transformed into green cities. Companies in green cities need to ensure that as they achieve
economic growth, they also do not contribute to environmental degradation and even contribute to
their well-being.
The objectives of this research are to identify the green innovation practices of firms in
Pampanga and to determine how different factors influence their green innovation practices.
Specifically, this research aims to answer the following questions:
1. What are the green innovation practices of firms in Pampanga?
2. Which among the following factors significantly influence firms to practice green
innovation?
a) Technological Capabilities
b) Organizational Capabilities
c) Market Demand
d) Government Regulation and Support
e) Managerial Environmental Concern
f) Expected Benefits
Green innovation could be the key for firms to contribute towards a sustainable
environment especially now that environmentally sensitive technology and access to knowledge
sources are becoming more available. Some companies are already practicing this, but to achieve
environmental sustainability and it is essential to have more organizations to contribute to a cleaner
environment and to a future worth wanting. Therefore, it is important to know how prevalent
green innovation practices are among companies in different industries and to what extent it is
incorporated in their business processes. It is also necessary to understand what green innovation
practices firms do and what factors encouraged them to incorporate such innovation in their firms.
If we understand the factors which are important for firms to adopt green innovation, different
social sectors can support them as they take responsibility for preserving the environment. This
aims to increase awareness on the different roles of consumers, government, business practitioners,
academe and other institutions towards increasing adoption of green innovation.
Another important goal of this research is to capture the intention towards green innovation
which is neglected in most literature about this concept. Do managers practice green innovation
because of concern for the environment or because of the expected benefits out of it? Answer to
this question could post a greater challenge for the academic institutions and other organizations
to instill environmental concerns not just in future managers but in everyone. Though expected
benefits may also encourage firms to practice green innovation, there is a possibility that green
innovation which arises from genuine concern for the environment leads to better environmental
results.
1.1 Green Innovation: Green Process and Green Product Innovation
Concepts such as green innovation may be difficult to observe and measure if it will not be
abstracted into sets of more specific constructs. In the empirical literature, green innovation
examined through green process innovation and green product innovation (Albort-Morant, Leal-

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Millán, & Cepeda-Carrión, 2016; C. H. Chang, 2011; Doran & Ryan, 2016). In the literature
review of Tariq et al., (2017) they defined green product innovation as an innovation that results
to the design, production, and marketing of products (or services) with no or lesser impact on the
environment. This was supported by Doran and Ryan (2016) when he cited the work of Cheng and
Shiu (2012) emphasizing that innovation could be new or significantly improved products that
have a lesser impact to the environment throughout its product life cycle. The two definitions are
similar since they focus on novel or improvements of products that are environmentally friendly.
Though they used different concepts like product life cycle design, production, and marketing of
products these are related. If firm designs, produces and markets environmentally sensitive
products then that includes a careful study of its life cycle. Doran and Ryan (2016) also defined
green or eco process innovation. They cited the work of Rennings (2002), which defined the
concept as the adoption of new or improvement of existing manufacturing processes with no or
minimal environmental effects. This was supported by Tariq et al. (2017) with an emphasis on
technologies and processes in manufacturing.
1.2 Theoretical Foundation of the Factors of Green Innovation
According to the resource-based view (RBV), resource and capability are important assets
that a company can control (Chang, 2016). It is a widely used theoretical foundation in the
literature on factors influencing green innovation (Fernando & Wah, 2017; Tariq et al., 2017)
primarily because resources are viewed as a major barrier for firms to practice and achieve optimal
results from green innovation (Tariq et al., 2017). For instance, Albort-Morant et al. (2016)
followed the assumption of RBV that firms differ in green innovation performance due to their
differences in resources and capabilities. Their study showed an indirect effect of dynamic
capabilities to green innovation performance through a mediating variable, relationship learning
capability (Albort-Morant et al., 2016). Similarly, Fernando and Wah (2017) used RBV to
describe green innovation as a set of resources that leads to environmental performance. In his
study, he identified cross-functional coordination, market focus, regulation, supplier and
technology as drivers for green innovation. Chang (2011) offered a unique capability which is
environmental management when she cited the work of Hart (1995).
The resource-based view helps in understanding how firms manage to innovate towards
environmental sustainability through the availability of necessary mechanisms. It explains why
some firms may be extensive in their green innovation practices while others could not afford to
adopt this innovation. While it shows what are the resources and capabilities needed, it does not
explore the reason behind the adoption of green innovation practices. Two possible reasons for
this is because, first, the definition of green innovation does not really capture the intention but is
rather more focused on environmental outcomes, and second, because RBV is only limited to
resources and capabilities.
Another theory that explains factors that lead to green innovation is the stakeholder theory
(ST). This theory can be traced in as early as the study of Freeman in 1984 which explains that
pressures from different stakeholders could assist companies to design environmentally sensitive
strategies and achieve competitive advantage (as cited by Yu & Ramanathan, 2015). To provide
evidence that perceived pressures from stakeholders could influence managers to be concerned

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with improving their environmental performance by practicing green production and operations
Yu and Ramanathan (2015) proposed a model and their findings showed that stakeholder pressures
indirectly leads to green product or process design as mediated by internal green management
which also mediates stakeholder pressure and environmental performance. This study made use
of stakeholder pressure and not resource-based approach because it is more concerned with the
role of the managers and different stakeholder in green practices and environmental performance.
Most studies about green innovation did not just rely on RBV but also on ST (Chang, 2016;
Chang, 2011; and Doran & Ryan, 2016) to show how capabilities, resources, and pressure from
stakeholders influences managers to practice green innovation. The study of Cuerva et al. (2014),
identified five sets of critical factors for green innovation which are technological resources,
organizational capabilities, collaboration with competitors and suppliers, public subsidies, and
product differentiation and customer demand and discussed how these five factors lead to eco-
innovation through technology push (from technological capabilities, organizational capabilities,
and collaboration), market pull (customer demand and product differentiation) and regulatory push
and pull (public subsidies). Their findings showed that Quality Management Systems, which is
their measure for organizational capabilities, is one of the strongest determinants of environmental
innovation strategy while public support does not significantly influence green innovation (Cuerva
et al., 2014). Based on their findings one may conclude that firms with better internal capabilities
are more inclined to practice green innovation and that public subsidies from the government may
not be necessary to motivate firms towards this innovation. However, unlike Fernando and Wah
(2017) which studied regulation, this research only focused on public subsidies. It did not capture
the possibility that strict regulations could have an effect on an environmentally friendly
innovation.
Hojnik and Ruzzier (2016) focused on the relationship of the drivers for process eco-
innovation and the effect of this innovation on company performance using environmental policy
instruments, which is similar to the regulatory aspect used in other studies, expected benefits,
managerial environmental concern and customer demand which is similar to market factors and
competitive pressure. The framework of their study is shown in Figure 2.
The definition of green innovation according to Tariq et al. (2017) does not cover the
intention of firms in implementing it, but in this study of Hojnik and Ruzzier (2016), two variables
could have captured this dimension and these are expected benefits and managerial environmental
concern. The premise for this is that the possible intention of firms to practice green innovation is
because of the expected positive outcomes out of it or because they truly want to improve
environmental sustainability. Surprisingly, the result of this study showed a strong effect of
managerial environmental concern to green innovation while no significant impact was found from
expected benefits. Tariq et al. (2017) stressed that even if green innovation does not question
intention, it may play an important role in firms’ decision to practice green innovation.
It may be observed that the factors that lead to green innovation are also closely similar to
the drivers of other concepts but different scholars have tested these explaining variables in
different ways, while grouping constructs in different categories, depending on the theory they use
and the outcome they link with green innovation or how they operationalize it. Another worthy of

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attention in the growing number of literature in green innovation is that regulation may play an
important role in the adoption of green innovation practices among companies, and different
countries have various sets of regulations and policies which lead to different results. Most articles
also studied how to market factor or demand leads to green innovation. For instance, Sanni (2017)
examined demand pull factors as a driver of eco-innovation and their findings showed that the
need to satisfy customers and stay competitive has a significant influence on firms’ adoption of
eco-innovation. Cuerva et al. (2014) also studied market pull factors and found that there is a
relationship between this factor and environmental innovation. While there is a growing number
of literature that supports the importance of market factors in green innovation, further studies are
needed to capture this factor for it is highly dependent on the attitude of people towards green
products, their environmental awareness, their culture and the norms of the society which they are
part of. These things vary across countries and geographical areas and such differences may cause
changes in the effects of market demand and other factors on green innovation. Thus there is a
need for further studies to understand how different factors could vary across different research
locales. This study will examine the influence regulation and market factors that are external to
the firm and which effects to green innovation could be traced from stakeholder theory. To better
understand how the government could influence green innovation, this study will follow the
approach of Hojnik and Ruzzier (2016) and Fernando and Wah (2017) wherein the influence of
strict regulations and possible benefits from the government will also be tested. Market factors will
be based on the study of Cai and Li (2018) which includes attitudes of customers towards
environmental problems and their demand for environmental actions and efforts.
This study will also examine internal factors that were studied as factors of green
innovation such as technological capabilities (Cuerva et al., 2014; Fernando & Wah, 2017) and
organizational capabilities (Cai & Li, 2018; Cuerva et al., 2014). Drawing from a resource-based
view, it is essential to examine how these capabilities lead to higher levels of green innovation.
While there is literature that shows that such capabilities lead to green innovation. There is a
possibility that in a developing country like the Philippines these capabilities are being exhausted
towards innovation which may not necessarily be environmentally sensitive but which will rather
improve the financial viability of the firm. Therefore this study will contribute to the growing
literature on factors of green innovation in the context of a developing country.
Studies on green innovation are mostly centered on capabilities and external factors which
could pressure companies to eco-innovate. There are very few researches which study the intention
of firms to eco-innovate. This study will use two distinct variables from Hojnik and Ruzzier (2016)
which are a managerial environmental concern and expected benefits.

Framework

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Figure 1. Green Innovation Factors and Practices Model


The conceptual framework of the study is shown in Figure 1 where the independent
factors of green innovation are technological capabilities, organizational capabilities, market
demand government regulation, and support, expected benefits and managerial concern.
2.1 Technological Capabilities
Technology factors include a broad set of variables like procurement of the software
programs and hardware, linkages and access to formal and informal sources of knowledge, public
research institutes and training of employees (Sanni, 2017). According to Fernando and Wah
(2017), the use of green technology in companies is essential for green innovation practices to be
successful. However, both innovation and non-green innovation requires technology and in the
study of Cuerva et al. (2014), they found that technological capabilities contribute more on non-
green innovation among SMEs in Spanish food and beverages. It is therefore important to know if
technological capabilities could lead to green innovation.
2.2 Organizational Capabilities
Cuerva et al. (2014) defined organizational capabilities as strategies that firms' implement
which aims to achieve valuable, uncommon, and hard to imitate resources. This may be in the
form of investments in energy efficiency, recycling, reduction in pollution or development of the
green product (Tariq et al., 2017). In his study, Mustapha et al. (2017) enumerated the common
management systems which include dimension of sustainability: "Total Quality Management
(TQM), ISO 9001:2008 management system, ISO 50001:2011 Management System, ISO
14001:2004 Management System and Eco-Management and Audit Scheme (EMAS)” (p.159). In
the study of Cuerva et al. (2014), they confirmed that organizational capabilities are the strongest
factor of green innovation.
2.3 Market Demand
Customers today are becoming more mindful of how their consumption process affects the
communities and the natural environment which provides firms with opportunities to differentiate

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their existing products or to introduce new ones (Shu et al., 2016). Aside from this, researches
also showed that green image is a primary driver for green product and green process innovation
(Tariq et al., 2017). Although these studies show that market demand positively influences green
product or process innovation, such concept changes across different research locales. This study
will propose that factors such as the need to satisfy customer demands and competition in
Pampanga have significant impacts on the decision of firms to eco-innovate.
2.4 Government Regulations and Support
Many studies acknowledge that regulation is crucial for firms to consider environmental
concerns in innovating their products and processes (Sanni, 2017). Firms may decide to implement
green innovation to comply with existing or anticipated regulations to avoid penalties or forced
closure or to acquire government support and incentives. Some researchers even support that when
regulations promote green innovation, this creates a "win-win" opportunity as firms achieve
improved productivity and a cleaner environment (Porter and van der Linde, 1995 as cited by
Sanni, 2017). Though most literature support this (Fernando & Wah, 2017), there are some
literature that reported negative and no significant relationship between public support and green
innovation (Cuerva et al., 2014).
This study will adopt this definition and will study regulation and government support
based on the components proposed by Hojnik & Ruzzier (2016) which are command and control
instrument and economic incentive instruments. However, unlike the authors, this study will treat
these components as one factor for green innovation and will study how in particular government
regulation in Pampanga may be related to green innovation practices by firms.
2.5 Expected Benefits
Another driver of green innovation is the expected benefits of firms in the adoption of such
practices. Tang et al (2017) cited the works of Dangelico and Pujari (2010 p.480) in enumerating
the benefits firms can reap from green process and product innovation, which includes "increased
efficiency in the use of resources, return on investment, increased sales, development of new
markets, improved corporate image, product differentiation, and enhanced competitive
advantage". This was supported by other researchers who stressed that firms save costs, can
enhance their brand image and in general can establish good relationships with its stakeholders
when they practice green innovation (Hojnik & Ruzzier, 2016). Firms are aware of these potential
short term and long term benefits associated with green innovation and may, therefore, be
influenced to practice green innovation since there is literature which links green product
innovation and performance and more importantly green process innovation to long term
performance (Tang et al., 2017).
2.6 Managerial Environmental Concern
There is evidence that supports both the positive and negative effects of green innovation
on firm performance and given this uncertainty, a firm's commitment to green innovation relies
more on the managerial concern and decision-making than on best practice or business policy
(Tang et al., 2017). For instance, managerial environmental concern was found to be one of the

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most important factors of green innovation for it positively affects the scope and speed of firms'
response to environmental problems (Tseng et. al., 2013 as cited by Hojnik & Ruzzier, 2016). This
shows that managers who have concern for the environment are more likely to invest money and
efforts towards environmental protection. Hojnik and Ruzzier (2016) cited Eiadat et al. (2008)
which found managerial environmental concern as the strongest factor of environmental
innovation strategy while Papagiannakis and Lioukas (2012) found that it motivates corporate
environmental responsiveness. This study will look at managerial environmental concerns as a
measure of intention on why firms practice green innovation.
These hypotheses of this study are as follows:
H1: Technological capabilities influence green innovation practices
H2: Organizational capabilities influence green innovation practices.
H3: Market factors influence green innovation practices.
H4: Government regulation and support influences green innovation
H5: Expected benefits influence green innovation practices.
H6: Managerial environmental concern influences green innovation

Methodology
Primary data was collected from the managers or supervisors of firms in Pampanga including
Angeles City. Initially, this study used a random sampling technique to select companies from the
official list of members of an association of companies in Pampanga. From a computation
following a 5% margin of error, 180 companies out of 358 listed must be surveyed. However, the
response rate for online questionnaires sent through email was just .55%. Due to the limited
timeframe of this research and low response rate from the online survey, purposive and snowball
sampling for both online and traditional survey methods was conducted. This study aimed to gather
data from at least 10 firms on each of the highly urbanized areas in Pampanga to ensure that these
areas are well represented. Efforts to eliminate bias were exerted ensuring that samples would
represent the different business types and classification. Responses were collected from 74
companies in Pampanga.
To ensure the content validity of the questionnaire items for green innovation which will be
measured through green product and green process innovation was adopted from the questionnaire
of Huang and Li (2017). The explanatory variables were adopted from the questionnaires of
Fernando and Wah (2017), Cai and Li (2018) and Hojnik and Ruzzier (2016). Five experts in the
field of research and green management assessed the clarity, completeness, and appropriateness of
the instrument. An expert in the field of research and instrument development also assessed the
instrument. After the third revision, the experts approved the research instrument.
This study made use of descriptive statistics to identify the green innovation practices of firms
in Pampanga. Ordinal logistic regression was used to examine if there is a significant relationship
between factors and green innovation practices. An ordinal probit regression may also be used to
provide a different way of interpretation if the data for the dependent variable is normal. In ordinal
logistic regression, it is necessary that the model would pass the prerequisite test of assumption of
proportional odds through the test of parallel lines it is possible that the sample will not pass this

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assumption and will require improvements in the model (Leroux & Pupion, 2017; Zhao et al.,
2018).
Discussion of Results
Green innovation is moderately being practiced by most firms in Pampanga. Although there
are still companies that do not practice green innovation, the number is significantly less than those
that practice it. Focusing on one of its category which is green product innovation, companies in
the area are more inclined to using eco-friendly materials and eco-packaging compared to
recycling and eco-labeling. But when the responses were clustered as to the items are being
practiced on a low or high extent, eco-packaging is being practiced on the same level as that of
recycling. However, it was found that some companies that make use of materials and packaging
with less harm to the environment do not communicate this with their customers through eco-
labeling. While most companies recycled their products such as used oil and cars for car
companies and damaged or substandard furniture for furniture makers, there are companies that
do not recover end of life products and do not recycle.
Green process innovations are practicing more to a greater extent. Among the green
innovation practices, reducing toxicity is highly practiced mainly because most companies do not
actually make use of toxic materials in their operations. While there are still companies that do
not practice green process innovation, the five practices that constitute this kind of innovation are
generally being moderately practiced by most of the firms in Pampanga. During the face to face
interview, managers shared that they reduce water, electricity and fuel consumption primarily to
reduce cost, to comply with company regulations or for them to attain company rewards for
reducing cost from utilities.
95% Confidence
Interval
Std. Lower Upper Odds
Estimate Error Wald df Sig. Bound Bound Ratio
Green Innovation = .0 -3.933 .817 23.148 1 .000 -5.535 -2.331 0.020
Green Innovation = 1 -1.204 .585 4.231 1 .040 -2.351 -.057 0.300
Technological Cap = 0 -1.780 .764 5.427 1 .020 -3.277 -.282 0.169
Technological Cap = 1 0a 0 5.928
Organizational Cap = 0 -2.645 .794 11.096 1 .001 -4.201 -1.089 0.071
Organizational Cap = 1 0a 0 14.084
Regulation = 0 .345 .649 .282 1 .595 -.928 1.617 1.412
a
Regulation =1 0 0 0.708
Market Factors = 0 -.411 .748 .301 1 .583 -1.877 1.056 0.663
Market Factos =1 0a 0 1.508
Managerial Env.
-1.842 1.025 3.231 1 .072 -3.851 .166 0.158
Concern=0
Managerial Env.
0a 0 6.311
Concern =1
Expected Benefits = 0 -1.330 1.139 1.363 1 .243 -3.563 .903 0.264
Expected Benefits = 1 0a 0 3.782
Figure 2. Factors of Green Innovation (Ordinal Regression Results)

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The result of this study shows that there are significant number of companies that practice green
product and green process innovation but it is important to note that while it appears that there is
almost an equal distribution among the companies which practice the items on low and high level,
there are still more companies which practice most of the items on low levels.
The ordinal regression results in Table 1 shows that technological capabilities and
organizational capabilities have a significant influence on green innovation at p < .05 level while
managerial environmental concern has significant influence at p < .10 level. Companies with low
technological capabilities have .169 odds of practicing high levels of green innovation while
companies with high technological capabilities have 5.928 odds of practicing high levels of green
innovation. There are only .071 odds that companies with low organizational capabilities practice
a high level of green innovation while there are 14.084 odds that companies with high
organizational capabilities practice green innovation. Companies with low managerial
environmental concerns have .158 odds of practicing high green innovation while companies with
high managerial environmental concerns have 6.311 odds.
This study showed that a high level of technological capabilities leads to a higher level of
green innovation. This indicates that significant improvements in technological capabilities may
be necessary for green innovation to be incorporated into company practices. This is also true with
organizational capabilities. A large number of companies in this study belonging to the small
category which is the reason why the findings show that most of the companies do not have
organizational and technological capabilities on a high level. On organizational capabilities, this
study reveals that most companies do not give rewards for environmentally friendly ideas and
practices. There are many firms that do not conduct an environmental audit which is necessary to
ensure that environmental regulations are not violated. The significant influence of these two
factors supports the resource-based view theory on green innovation that capabilities could hinder
or support green innovation practices. This study provided evidence that technological and
organizational capabilities should be present at a higher level to allow organizations to practice
significant green innovation practices.
On the other hand, this study was not able to provide empirical evidence on the influence
of external factors on green innovation which were borrowed from stakeholder theory. Market
factors and regulations do not have a significant influence on green innovation. Based from the
face to face survey with managers, there are some customers who may communicate their concern
for the environment and will consider the effects of their product to the environment in their
purchase but most customers are still after with other considerations like price and quality. This
indicates that most consumers still do not consider the effects of their purchasing behavior to the
environment. Managers also explained that while the current administration shows political will
in environmental issues, there are no incentives for adopting green innovation which could help
companies to offset investment to green initiatives. Some of them were even surprised to know
from the items of the questionnaire that it is possible for the government to offer such incentives
and support.
One of the main purposes of this study is to know how intention could possibly influence
green innovation. The ordinal regression results only supported that managerial environmental

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concern has a significant influence on green innovation. Expected benefits did not have a
significant influence on green innovation and it is important to note that it was observed during
the face to face survey that some managers or owners which practice innovation are aware that
such practice may not lead to financial or competitive advantage even if most agree and strongly
agree that green innovation could lead to these benefits.

p-
Hypothesis odds ratio value Description
H1: Technological Capabilities influence
green innovation practice to a greater extent
than organizational capabilities 5.928 0.02 Supports Hypothesis
H2: Organizational Capabilities influence
green innovation practices 14.084 0.001 Support Hypothesis
H3: Market Factors influence green Do not support the
innovation practices 1.508 0.583 hypothesis
H4: Government Regulation influence green
innovation to a greater extent than market Do not support the
factors 0.708 0.595 hypothesis
H5: Managerial Environmental Concern
influence green innovation to a greater extent Do not support the
than expected benefits 3.782 0.072 hypothesis
H6: Expected benefits influence green
innovation 6.311 0.243 Support Hypothesis
Figure 3. Summary of Hypothesis and Findings

Conclusions
Green product and green process innovation are being practiced by most firms in Pampanga
at a moderate level. Green product innovation such as using non-toxic materials, environmentally
friendly packaging, recovering the company's end of life products and recycling and using eco-
labeling are being practiced. Reducing water, electricity, and fuel are also being practiced as well
as using cleaner technology, recycling and remanufacturing of materials and reducing toxicity.
However, there are still a few companies that do not practice these kinds of innovation.
A high level of technological, organizational capabilities and managerial environmental
concern could increase the likelihood that companies will practice green innovation. Regulations,
market factors, and expected benefits were not found to the significant factors of green innovation.
This may indicate that significant improvements in technological and organizational capabilities
are the key to green innovation practices to a higher extent. On the other hand, regulation and
market factors do not influence companies to adopt green innovation. Intention to practice green
innovation because of managerial concern for the environment is an important factor for green
innovation while having the intention to practice it because of expected benefit does not
significantly lead to green innovation.
Studies in different settings show varied results. In theory, all of these factors should
contribute to green innovation. Regulation and market demand in Pampanga may not differ
significantly to that of the Philippines in general. This may indicate that regulations and
government support in the country do not influence companies to practice green innovation.

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Another important stakeholder is the customers. Aside from the government, these sectors have
the power to pressure companies to adopt green innovation. But in this research, the current market
factors do not influence firms to practice green innovation. The lack of a link between these two
important external factors according to stakeholder theory may explain why companies in
Pampanga are only practicing green innovation at a moderate level and some companies are not
even practicing green innovation. Again, since the two factors can be very consistent in the
Philippine settings as a whole, this may indicate that these two factors do not contribute to green
innovation in the country. This insight is valuable for the government sector, the academe, media,
and other non-government units in promoting sustainable development in the country.
This research highlights that managerial environmental concern leads to green innovation.
While there are studies that argue that green innovation translates to financial benefits for the
company, the result of this research may imply that managers accept that green innovation may
not yield to return of investments but are concerned with the environment and this concern leads
to green innovation. These findings may suggest that managers' characteristics such as concern for
the environment, sustainability awareness, and environmental leadership could be important
factors of green innovation and must be explored.

Limitations and Recommendations for future research

The result poses a challenge for the academe in instilling environmentalism among students
and future managers. If business students will be taught how to put the environment in the center
of business operations, they will know how to maintain the balance between economic and
environmental sustainability. Since organizational and capabilities are necessary factors for green
innovation, academic institutions and the government may provide support to companies to enable
them to enhance these capabilities.
Future studies that could test this model on a larger sample frame and geographical scope
should be conducted to capture differences in regulation and customer attitudes. Qualitative
researches may also be pursued to understand the role of intention in green innovation. A case
study on firms that practices green innovation may be conducted to reveal how firms actively
practice green innovation. Another recommendation is to explore the moderating effect of
managerial environmental concern on the influence of technological and organizational
capabilities to green innovation. More studies on this topic should be conducted to help companies
develop a green innovation model that will lead to positive results on its economic and
environmental performance. The results of this study and other studies related to green innovation
should be communicated to industry practitioners and the public for it to become a mechanism for
change.
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JGB 1237
Green Marketing: A Tool for Strengthening Customer Loyalty in
Quick-Service Restaurants
Nina Ricci Sogue and Leo B. Malagar
De La Salle University, Manila
nina.bunsoy@yahoo.com
leo.malagar@dlsu.edu.ph

Abstract:
Green Marketing is becoming a trend nowadays. As more consumers are actively choosing to
patronize companies that are eco-friendly, practicing this has become a tool to gain a competitive
advantage over others. However, when it comes to being environment-friendly, quick service
restaurants (QSR) or fast food chains are not always the top choices due to the nature of their
business. This paper attempts to study the different trends in green marketing and suggest different
strategies that QSR’s in the Philippines may explore in order to adhere to the concept of green
marketing. It also explores the different challenges and areas of consideration given the business
nature of QSR.

Keywords: Green marketing, customer loyalty, sustainable development, quick service


restaurants, Philippines

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JGB 1254
Integrating Theory and Practice on Sustainability Marketing: A
Look at the Asia Pacific Tambuli Awards

Leah May Tacuel


De La Salle University, Manila
leah_tacuel@dlse.edu.ph

Abstract
Higher education institutions (HEIs) are called to contribute to sustainable development
through teaching, research, and extension programs. In view of meeting national development
goals and international standards, the Commission on Higher Education (CHED) encourages
Philippine HEIs to engage in academe-industry linkages and internationalization initiatives that
will maximize the education sector’s knowledge capital in uplifting society. The Asia Pacific
Tambuli Awards organized by the University of Asia and the Pacific (UA&P)’s School of
Communication is one of the successful initiatives that synthesize the concept of integrated
marketing communications (IMC) with best practices of social good marketing in the industry.
The paper explores how the Asia Pacific Tambuli Awards as an academe-industry
collaboration incorporates Peattie and Belz’ (2010) concept of sustainability marketing. An
analysis of the criteria and 32 winning entries from 2016 to 2018 shows that sustainability
marketing is incorporated to a minimum extent. Specifically, the human-centric and ethics-based
elements of integrated marketing communications, which are translated to humanity, brand
purpose, and social impact in the Awards’ criteria for judging, are reflected in the high-frequency
counts of relationship-based and ethical elements in winning campaigns. Still, the low counts of
ecological-oriented and viable elements indicate that there is room in the academe-led initiative
for highlighting other aspects of sustainability such as environmental consciousness, ecological
balance, sustainable and ethical practices, and product and service innovation.
Keywords: sustainability marketing, integrated marketing communications, marketing
education, social marketing
Introduction
With the rise of ecological and social issues in business operations over the past decades,
industries have moved beyond traditional corporate social responsibility and towards sustainable
development. Marketing strategies have likewise evolved from the traditional marketing mix to
green marketing, social marketing, and more recently, sustainability marketing (McDonagh &
Prothero, 2014; Kumar, Rahman, Kazmi & Goyal, 2012; Peattie & Belz, 2010; Charter, Peattie,
Ottman & Polonsky, 2002). Sustainability marketing adopts the triple bottom line concept and
emphasizes three aspects of business sustainability: economic, social, and environmental (Belz &

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Karstens, 2015). This marks the expansion of marketing’s goals from pure profitability to social
and environmental responsibility.
Businesses are not the only ones recognizing the need for sustainability. Apart from the
public sector, international organizations, and civil society organizations, the academe
acknowledges its responsibility to contribute to sustainable development. The Commission on
Higher Education (CHED), in its strategic plan for 2011-2016, highlights its aim for Philippine
higher education institutions (HEIs) to contribute to “national development and global
competitiveness” through human capital development and knowledge and technology transfer
(Commission on Higher Education, 2017, p. 1). HEIs, through their teaching, research, and
extension programs, are in an influential position to catalyze social change by providing scientific
solutions and creative innovations to socio-economic issues. Thus, CHED encourages academe-
industry collaborations to address priority areas such as job-skills matching, poverty alleviation
and livelihood development, disaster reduction and peace, environmental conservation, women
empowerment, and gender and development (Commission on Higher Education, 2017).
Among academe-industry collaborations, much emphasis had been given to research and
innovation in the fields of science and technology (Commission on Higher Education, 2017) but
there is a gap in business and the social sciences, particularly in marketing and communication.
These areas are equally important in advancing sustainability as they directly impact businesses
and the economy, consumer behavior, and sociocultural mindsets and values of generations
(Gordon, Carrigan & Hastings, 2011).
1.1 The Asia Pacific Tambuli Awards
One of the successful initiatives in promoting the social good in marketing is the Asia
Pacific Tambuli Awards organized by the University of Asia and the Pacific (UA&P)-School of
Communication. UA&P’s School of Communication pioneered the Integrated Marketing
Communications (IMC) program in Asia in 1997 under the leadership of its dean, Dr. Jerry
Kliatchko. The program curriculum revolves around the principles of IMC, defined as “an
audience-driven business process of strategically managing stakeholders, content, channels, and
results of brand communication programs” (Kliatchko, 2009, p. 9). The IMC program’s strength
lies on its personalist view of customers and audiences, grounded on Christian ethics and
philosophy of the human person, which is critical to building authentic brand relationships
(Kliatchko, 2009). This human-centric perspective likewise highlights ethical considerations in
marketing and advertising, and the need to promote sound values and social good.
IMC’s values-oriented approach in creating marketing communication campaigns is
reflected in the Asia Pacific Tambuli Awards. The Awards, which aims to recognize “creative and
effective brands with purpose” is the first among global awards to require social good and values
among its criteria, in addition to creativity and business and marketing results (The Asia Pacific
Tambuli Awards, 2019, para. 1). The Tambuli Awards defines purpose as “values espoused by a
brand that defines what a brand stands for and why it exists, portrayed in brand advertising
messages such as an upright attitude, behavior, situation, skill, or relationship, that make or change
the life of a person, family, or society for the better” (The Asia Pacific Tambuli Awards, 2019,
para. 4). It also factors in social impact on the effectiveness of the campaign. The three-pronged
criteria comprising creativity, purpose, and results have affirmed over the years that promoting the

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social good and time-tested human values are integral to effectiveness even in mainstream
marketing communications campaigns.
The Tambuli Awards’ success can be attributed to the School of Communication’s industry
linkages and networks that serve as media and corporate partners in the event, as well as
ambassadors of social good marketing in the industry. These linkages include leading advertising
magazines, media and advertising agencies, and client companies where many of its alumni and
adjunct faculty are placed. Since its inception in 2005, the Tambuli Awards has attracted numerous
local and foreign entries, reaching countries beyond Southeast Asia such as the United States,
Australia, New Zealand, India, Korea, and Japan. The partnership between the academe and
industry proves to be mutually beneficial as it contributes to the development of young talent,
where proceeds go to the Tambuli Scholarship Fund of the IMC program of UA&P (Asia Pacific
Tambuli Awards, 2019).
With the Tambuli Awards’ pioneering thrust and success, it is imperative to look into the
Awards’ vis-à-vis the concept of sustainability marketing. In particular, this study aims to answer
the following:
(1) Is sustainable marketing incorporated in the Asia Pacific Tambuli Awards?
(2) What elements of sustainability marketing are reflected in the winning marketing
communications campaigns?
(3) What other areas of sustainability marketing can the Tambuli Awards develop?
Framework
Sustainability marketing, as described in most literature, focuses on three aspects:
economic, social, and environmental (Belz & Karstens, 2015; McDonagh & Prothero, 2014;
Kumar, Rahman, Kazmi & Goyal, 2012). Critics argue, however, that while social and
environmental considerations are factored in, marketing remains oriented primarily towards
consumption and profit (Yang, FitzPatrick & Varey, 2015). Since the thrust of the Asia Pacific
Tambuli Awards highlights the importance of promoting social good grounded on ethics and a
personalist view of consumers, a more all-encompassing marketing framework that upholds both
sustainable business practices and long-term well-being of society and nature is considered.
Alternative frameworks that emphasize a more holistic approach to sustainability marketing
include: Rakic and Rakic (2015) who contributed the integration of three dimensions (goals, actors,
and capital) and their characteristics; Pomering (2014) who has a similar model involving
participants, physical evidence, process and partnership; Crittenden et al. (2010) who developed
the market-oriented sustainability framework involving three constructs (DNA or core ideology,
stakeholder involvement, and performance management); and Peattie and Belz (2010) who
expanded the triple bottom line elements to include viability and ethics.
For the purpose of analysis, this study adopts the holistic paradigm conceptualized by
Peattie and Belz (2010) which describes sustainability marketing as seeking to “blend mainstream
economic and technical perspectives with the emerging concepts of relationship marketing and the
social, ethical, environmental and intergenerational perspectives of the sustainable development
agenda” (p. 14). The authors summarize this concept in a pseudo-mnemonic: “marketing that
endures forEVER”, where it delivers “ecologically-oriented, viable, ethical, and relationship-

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based solutions” to society’s needs (Peattie and Belz, 2010, p. 14). The Asia Pacific Tambuli
Awards will thus be assessed against this sustainability marketing framework (see Figure 1).
Figure 1. Conceptual framework: Integrating theory and practice on sustainability
marketing as seen in the Asia Pacific Tambuli Awards

Sustainability marketing
(Peattie & Belz, 2010) Asia Pacific Tambuli Awards
 Ecologically-oriented  Creativity
(Ecosystems + environment)  Purpose (values + social good)
 Viable (technology + economics)  Results (business results +
 Ethical (social justice + equity) social impact)
 Relationship-based (stakeholders)

Methodology
This study made use of the case study approach, where theory is applied to an existing
phenomenon, i.e., advertising awards, to evaluate the extent of its application. First, I conducted a
critical review of the literature on sustainability marketing to determine an appropriate framework
against which the Tambuli Awards will be analyzed. The framework provided the elements and
principles to determine the extent to which sustainability marketing is incorporated in the Awards
and the winning entries.
Second, to answer which elements are reflected in the marketing campaigns, I did content
and thematic analysis of 32 Grand Prix and Gold winners of the Asia Pacific Tambuli Awards
from 2016 to 2018 (see Appendices A-C). The Grand Prix and Gold Awards are the top recognition
given to campaigns that scored highly in all three criteria: creativity, purpose, and results. The
content analysis specifically identifies the frequency and themes in winning campaigns vis-à-vis
the elements of Peattie and Belz’ 2010 sustainability marketing paradigm.
Lastly, to contextualize the results, implications, and recommendations, I conducted an
informal interview with a key informant involved in organizing the Tambuli Awards and went
through the company websites of winning entries, particularly global consumer brands, to cross-
check their inclination towards sustainability marketing.
Discussion of Results

4.1 Sustainability marketing in the Asia Pacific Tambuli Awards


An analysis of the criteria and winning entries show that the Asia Pacific Tambuli Awards
has incorporated the concept of sustainability marketing, albeit at a minimum extent. With the
priority it gives to purpose, the Awards highlight the need for promoting social good and values to
build long-term relationships with stakeholders, reminiscent of the concepts of social and relational

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marketing. Over the years, it has developed the awards criteria to be better-rounded particularly in
terms of content, where positive messages and values communicated by a campaign eventually
expanded to a large-scale social good and purpose intrinsic to the brand. While the Awards has yet
to fully adhere to a holistic concept of sustainability marketing, it has raised the bar by creating
special award categories on areas that need attention in the sustainability agenda: (1) innovation,
(2) care for the environment, (3) health and wellness, (4) responsible citizenship, and (5) education.
These categories set the Tambuli Awards apart from other advertising awards dominated by
technical criteria alone such as creativity and business results. Nonetheless, because of its limits
as an award-giving body that focuses on marketing communications campaigns, it is not entirely
reflective of the overall stance of companies and still wanting in terms of assessing their overall
inclination towards holistic sustainability.
The minimal integration of sustainability marketing in the Tambuli Awards is supported
by the results of the content and thematic analysis, where no marketing campaign displayed all
four elements of sustainability marketing. This explains to a certain extent the absence of recipients
of the Platinum Award, the highest recognition given to a campaign since the last winner in 2014.
Despite the laudable campaigns clients and advertisers produced in recent years, there seems to be
a missing ingredient in the submitted entries (e.g., the long-term impact of marketing solutions
addressing societal needs) that have prevented the panel from giving out a Platinum Award (C.
Estanislao, personal communication, February 6, 2019).
Among the four elements in Peattie & Belz’ (2010) framework, the ‘relationship-based’
element of sustainability marketing is consistently evident in all winning campaigns, followed by
the ‘ethical’ element (see Tables 1-3). On the other hand, ‘ecologically-oriented’ is the least
evident, followed by the ‘viable’ element. This means several marketing campaigns continue to
focus on building relationships with their consumers and important stakeholders while being
mindful of their social impact, albeit mostly short-term, to attract emerging markets and increase
customer loyalty. However, the environmental impact and economic-technological efficacy
elements tend to be overlooked. Some campaigns, for example, are aimed at generating attention
to a particular cause or addressing a concern for the duration of the campaign but the need to
resolve the issue in the long term remains.
Table 1. Sustainability marketing in 2016 Asia Pacific Tambuli Awards
Ecologically- Relationship-
Campaign Viable Ethical Themes
oriented based
Infant mortality,
“Future Child”,
x x sanitary practices,
Lifebuoy (soap)
handwashing
“The World's x x x Homeless people,
First Bill", laborers, shelter,

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Polyfoam improvised
(mattresses) billboard-beds
“One Try, One
Health, Access to
Life”, END ALS x x
ALS treatment
Association
Women
“3 More Years”,
empowerment,
Fair & Lovely x x
gender equity,
(beauty cream)
confidence
“Omo Gallery of
Encouraging
Dreams”, Omo
x x artistic dreams
(laundry
among children
products)
“Not a Bug Drone strikes,
Splat”, Reprieve x x Human rights,
Foundation crisis awareness

Access to
“Last Day of
education, equal
School”, NTUC
x x opportunity,
Income
financial security,
Insurance
family first

frequency 0 1 7 7

Table 2. Sustainability marketing in 2017 Asia Pacific Tambuli Awards


Ecologically- Relationship-
Campaign Viable Ethical Themes
oriented based

Violence against
“#20Minutesof women, sexual
Action4Change”, x x assault, respect for
White Ribbon women, father and
son relationships
“Correcting
History”, x x Human rights
Campaign violations, Martial
Against the

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Return of the Law, history,
Marcoses in education
Malacañang
Judgment against
“Mask”, Globe people with
x x
Telecom disabilities, courage,
inclusiveness
Violence against
“The Last Mask”,
women, acid
Natalia Ponce de x x
attacks, cause
Leon Foundation
marketing

“The Purity Test”, Nitrate pollution,


Aqua Carpatica x x x safe drinking water,
(bottled water) nitrate map

Women
“#BeatMe”, UN empowerment,
x x
Women Pakistan gender sensitivity,
and equity
“Heart to Heart:
Gender bias and
All For the First
stereotypes,
Hello”, Elevit x x
expectant fathers,
(pregnancy
parenthood
supplement)
Perseverance in
“The Boy Who
education, empathy
Loves to Study”, x x
and generosity,
McDonald’s
humanity
“The Second
Violence against
Scoreboard”,
x x women, domestic
Teletica, Inamu,
violence, sports
Fedefutbol

frequency 1 1 8 9

Table 3. Sustainability marketing in 2018 Asia Pacific Tambuli Awards

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Ecologically- Relationship
Campaign Viable Ethical Themes
oriented -based
“Making
Infant mortality,
immunization a
adoption of health
tradition”,
x x x practices,
Ministry of
innovation aligned
Public Health,
to the culture
Afghanistan
“Samsung CSR, access to
Technical School education, gender
x x
– Seema Nagar”, equity, women
Samsung empowerment

“Power
Struggle”, AGL x x x Sustainable energy
(energy)
Children’s health,
“Washable
youth’s dreams,
Book”, ANGFA x x
and future,
(health products)
handwashing
Missing persons,
youth safety and
“Disappearing
welfare,
Person Alerts”,
x x responsible
Queensland
citizenship,
Police
technical
innovation

“Dead Whale”, Plastic waste,


Greenpeace x x coastal and marine
Philippines protection

Bushfires, public
“Alert Ad”,
safety,
Victorian x x
technological
Government
innovation
Endangered
“Hello in x x x species, wildlife
Elephant”, David conservation

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Sheldrick
Wildlife Trust
“Real Beauty Is Diversity, gender
Universal”, Dove x x sensitivity, healthy
(soap) body image
“Stop Download Voyeurism,
kill”, Busan pornography,
x x x
Metropolitan suicide, respect for
Police Agency women
Ecological
“Together We
sustainability,
Thrive”, WWF x x
environmental
Philippines
conservation
“#Kwentong
Jollibee:
Connecting with
Filipino values and
Customers
culture, love for
Through x
family, love, and
Compelling
relationships
Digital
Storytelling”,
Jollibee
“#LakiSaLolo
Filipino culture and
#LakiSaLola: A
values, love for
Grand Thank You
x x family and
for Lolo’s and
grandparents,
Lola’s selfless
humanity
love”, Jollibee
Love for family and
“Eden –
parents, single
Drayber”, Eden x
parents, gender
(cheese)
sensitivity
“Field Good
Parenting, values
Trip”, Breeze
x education, children
(laundry
helping others
products)

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Love of mothers for
“Smile, Love”,
x their children, love
Chuckie (drink)
for family
frequency 4 7 4 16
While the results are inconclusive given the limited insights offered by marketing
campaigns alone, they reflect the trend of customer-centricity being prioritized in marketing over
the communication of sustainability-related objectives, as seen in the lack of campaigns
incorporating environmental sustainability and intergenerational equity. Further assessment of the
companies behind the campaigns, however, reveals that a good number of global consumer brands,
in fact, have sustainability plans and programs aligned to the UN Sustainable Development Goals.
Unilever has one of the most comprehensive programs encompassed in their Sustainability Living
Plan which covers ecological-oriented elements such as waste and packaging, water use, and
greenhouse gases; viable elements such as sustainable sourcing, improving nutrition, and health
and hygiene; ethical elements such as fairness in the workplace and opportunities for women; and
relationship-based elements such as inclusive business (Unilever, 2019). Nestlé and Mondelēz
likewise have similar sustainability programs covering environmental sustainability, responsible
sourcing, nutrition, agricultural and rural development, and human rights (Nestlé, 2016; Mondelēz
International, n.d.). On the other hand, technology companies such as Samsung and Globe
Telecom adopt the triple bottom line concept, using innovation as a means to contribute to
economic, social, and environmental sustainability (Samsung, 2019; Globe Telecom, n.d.). Fast
food giants like McDonald’s and Jollibee have also implemented ecological and relationship-based
initiatives, focusing on climate action and environment-friendly programs as well as livelihood
programs for farmers and educational and employment opportunities for the youth (McDonald’s,
2019; Jollibee Group Foundation, 2014).
The results of the analysis of the marketing campaigns, when cross-checked with actual
sustainability initiatives, imply that marketers and advertisers have yet to subscribe to the holistic
concept of sustainability marketing. Based on the prevalent elements in the marketing campaigns
of winning entries, companies tend to focus on their product, service, or customer attributes and
limit themselves to their respective niches. This is particularly true for businesses or organizations
whose nature of operations require them to adopt sustainable practices, which make it easier for
them to implement sustainability-oriented marketing (e.g., government agencies, cause-related
organizations, health industry). Unfortunately, a more well-rounded campaign appears to be
challenging for consumer brands, where competition is stiffer and relational strategies not
necessarily focused on sustainability have proven to be more effective.
The results nonetheless show that sustainability marketing has gained traction among
commercial and mainstream marketing campaigns of different industries (e.g., beauty, food retail,
home, and laundry). More importantly, it shows progress in the adoption of sustainability
marketing over the past two years as more winning campaigns in the Tambuli Awards incorporate
the sustainability elements in their marketing strategies. The growing importance of sustainability
marketing is affirmed by the decision of leading award-giving bodies such as Cannes and the Effie

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Awards to include the Glass Lions and Sustainable Development Goals Lions, and the Positive
Change Effies respectively in their award categories [Ascential Events (Europe) Limited., 2018;
Effie Worldwide, Inc., 2018]. The Cannes Lions award positive socio-cultural change towards
gender equality and sustainable positive impact to people, planet, prosperity, and peace [Ascential
Events (Europe) Limited, 2018] while the Effies award environmental and social good (Effie
Worldwide, Inc., 2018). These leading award-giving bodies likewise serve as benchmarks in
developing further the criteria for the Tambuli Awards.
4.2 Areas for development
A more integrated approach to assessing the extent to which sustainability marketing is
implemented is needed, with the marketers’ propensity to emphasize only what is directly related
to their chosen cause or objectives in their marketing campaigns. Sustainability thrusts of
consumer brands, in particular, tend to be overshadowed by relational tactics. Thus, some
marketing campaigns appear to be either an extension of corporate social responsibility initiatives
or a public relations stunt to appeal to their publics. As such, the criteria for the Tambuli Awards
have to be improved and possibly quantified to measure authentic brand purpose. This will not
only provide a panoramic perspective of a company’s inclination towards sustainability marketing
but also confirm whether the messages it communicates are consistent with the company’s values
and actions.
Given the minimal integration of sustainability marketing in winning marketing
campaigns, it is important that the Tambuli Awards organizers take the initiative in trailblazing
the way for sustainability to be recognized in the Asia Pacific region, not just because it adds value
to a marketing campaign but because it is the moral responsibility of the profession which will
ultimately benefit society and succeeding generations. One step is for the UA&P-School of
Communication to incorporate sustainability marketing in the IMC program curriculum to instill
consciousness early on among future marketing professionals. Since the Tambuli Awards is
complemented by the adobo-Tambuli Asia Pacific conference which features discussions and
industry insights on how marketing communications can incorporate social good and humanity, it
would be commendable to include topics on sustainability marketing to generate a wider
perspective among students, business and marketing professionals, and executives. Apart from
benchmarking with leading award-giving bodies, collaboration with UA&P’s Center for Corporate
Social Responsibility, which is a recognized leader in sustainability reporting, can be done to
integrate elements of sustainability with marketing communications. Themes based on sustainable
development goals can be explored to raise concern over urgent issues and continue inspiring
creativity and social responsibility among industry leaders. Specific areas that can be developed
and incorporated in marketing campaigns are environmental consciousness, ecological balance
and viability, ethical business practices, sustainable consumption, and the need for product and
service innovation.
To provide marketers, business leaders, and researchers with concrete examples of
sustainability marketing effectiveness, the Tambuli Awards, as an academe-led project, can work
on a case database, similar to the practice of leading award-giving bodies. This will provide useful
reference and document best practices in the light of the Awards’ criteria and will serve as a basis
to track the development and milestones of the Awards over the years since its creation. To
continuously improve and stay relevant, it is also recommended to conduct impact evaluation
studies to determine the direct effect of the Tambuli Awards to the development of social good
marketing and eventually sustainability marketing in the industry.

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Conclusions
Sustainability marketing is being practiced, as seen in the campaigns recognized by the
Asia Pacific Tambuli Awards, but a more deliberate effort to adopt holistic sustainability is
wanting. Marketing professionals, therefore, need to reevaluate their strategies in view of the
bigger scope of global sustainable development and work on incorporating viability and ecology
in their marketing materials. Moreover, they have to exert more effort to capture their company’s
contribution to the sustainability agenda and incorporate sustainability initiatives in their
marketing campaigns. The Tambuli Award is a commendable initiative that can encourage current
and future leaders to move towards improving sustainability by getting consumers on board and
making marketing serviceable to society. Research and innovation will be critical to this
improvement, and this is where the academe and industry can intensify their collaboration.
Limitations and Recommendations for future research
The results of the study may not accurately represent the practices and the overall trend in
the marketing industry, given that it is based only on well-recognized campaigns. Analyzing
advertising awards means a limited scope of content, as data is based only on submitted entries.
Since entries come with fees, minor players in the industry whose campaigns offer variety and a
more accurate view of sustainability marketing may choose not to participate. Likewise, major
players who would rather invest in more prominent awards but have equally brilliant campaigns
are discounted. As the basis of the analysis are marketing campaigns addressing specific
objectives, winning entries to the Tambuli Awards may not entirely reflect the stance of the
companies on sustainable marketing? The scope presented by the analysis is therefore not all-
encompassing but presents a quick overview of the industry. Further studies may be done to cross-
check the results vis-à-vis actual engagement of companies in sustainability marketing practices
(e.g., programs, projects, sustainability reports).
Sustainability marketing is still an evolving concept and the framework used has to be
operationalized further to contextualize its application. Empirical studies may be done to validate
its relevance and applicability to the needs of the evolving industry. For example, the adoption of
sustainability marketing principles may be validated further through FGDs or interviews with top
executives. Measuring the effectiveness of campaigns and its contribution to sustainable
development also need to be studied, particularly in the context of industries critical to
sustainable development goals. Other aspects of sustainability in the context of the marketing
industry may also be reviewed such as legal implications on intellectual property, data privacy,
advertising and media ethics, and government regulation. To determine the Tambuli Awards’
relevance in the industry, it is also recommended to conduct impact evaluation techniques to see
which contributions are directly attributable to the Awards.
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Appendices
Appendix A: 2016 Asia Pacific Tambuli Awards winners
Award Entry Title Agency/Client Country
Category
Grand Prix, Future Child MullenLowe Lintas Group / India
Gold, Silver, Unilever Ltd.
Bronze
Grand Prix, The World's First Bill BBDO Pakistan / Polyfoam Pakistan
Gold, Silver
Gold One Try, One Life McCann Erickson Japan / Japan
The END ALS Association

Gold 3 More Years MullenLowe Lintas Group India


/ Hindustan Unilever Ltd.
Gold Omo Gallery of Dreams MullenLowe / Unilever Vietnam
Vietnam
Gold Not a Bug Splat BBDO Pakistan / Reprieve Pakistan
/ Foundation for
Fundamental Rights
Gold Last Day of School BBH Asia Pacific / NTUC Singapore
Income

Appendix B: 2017 Asia Pacific Tambuli Awards winners


Award Entry Title Agency/Client Country
Category

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Grand Prix #20MinutesofAction4 J. Walter Thompson / United States
Change White Ribbon

Grand Prix, Correcting History TBWA\Santiago Mangada Philippines


Gold Puno / Campaign Against
the Return of the
Marcoses to Malacañang
(CARMMA)
Grand Prix, Mask Publicis Jimenez Basic / Philippines
Gold, Silver, Globe Telecom
Bronze
Grand Prix The Last Mask J. Walter Thompson / Colombia
Natalia Ponce de Leon
Foundation
Grand Prix The Purity Test J. Walter Thompson / Romania
Valves Holding
Gold, Silver #BeatMe BBDO Pakistan / UN Pakistan
Women Pakistan
Gold Heart To Heart: All For JWT Shanghai / Bayer China
The First Hello
Gold The Boy Who Loves to Leo Burnett Manila/ Philippines
Study McDonald’s Philippines
Gold The Second J. Walter Thompson/ United States
Scoreboard Teletica, Inamu,
Fedefutbol

Appendix C: 2018 Asia Pacific Tambuli Awards winners


Awards Entry Title Agency/Client Country
Category
Grand Prix, Making immunization McCANN WORLDGROUP India
Silver a tradition India / Ministry of Public
Health, Afghanistan

Grand Prix, Samsung Technical Cheil Worldwide, India / India


Gold, Bronze School – Seema Nagar Samsung India Electronics
Pvt. Ltd.

Grand Prix Power Struggle McCann Melbourne/ AGL Australia

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Grand Prix, Washable Book McCann Healthcare Japan
Silver Worldwide Japan, Inc. /
ANGFA

Grand Prix, Disappearing Person BWM Dentsu / Australia


Silver, Bronze Alerts Queensland Police

Grand Prix, Dead Whale Dentsu Jayme Syfu / Philippines


Gold Greenpeace Philippines

Gold, Silver, Alert Ad BWM Dentsu / Victorian Australia


Bronze Government
Gold, Silver, Hello in Elephant white grey / The David Australia
Bronze Sheldrick Wildlife Trust
Gold Real Beauty Is Ogilvy & Mather Philippines
Universal Philippines, Inc. / Unilever
Philippines

Gold, Bronze Stop Download kill Cheil Worldwide, Seoul / South Korea
Busan Metropolitan Police
Agency

Gold Together We Thrive IdeasXMachina Philippines


Advertising, Inc. / Kabang
Kalikasan ng Pilipinas
Foundation, Inc.
Gold, Bronze #KwentongJollibee: McCANN WORLDGROUP Philippines
Connecting with Philippines and Stratworks,
Customers Through Inc. / Jollibee Foods
Compelling Digital Corporation
Storytelling
Gold #LakiSaLolo McCANN WORLDGROUP Philippines
#LakiSaLola: A Grand Philippines and Stratworks,
Thank You for Lolo’s Inc. / Jollibee Foods
and Lola’s selfless love Corporation

Gold Eden - Drayber Ogilvy & Mather Philippines


Philippines, Inc. /
Mondelez Philippines, Inc.

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Gold Field Good Trip Dentsu Jayme Syfu / Philippines
Unilever Philippines
Gold Smile, Love McCANN WORLDGROUP Philippines
Philippines / Nestle
Philippines

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JGB 1213
Internal Branding Practices and Organizational Citizenship
Behavior in a Large Food-Processing Company: Implications for an
Employee-driven Sustainability Performance
Raymond Paderna, Miguel Carlos Mendoza,
Luis Antonio Orosa and Jose Gabriel Recto
De La Salle University, Manila
raymond.paderna@dlsu.edu.ph
miguel_carlos_mendoza@dlsu.edu.ph
luis_orosa@dlsu.edu.ph
jose_gabriel_recto@dlsu.edu.ph

Abstract
Extant literature argues that a bottom-up approach is essential in successfully pushing for
a corporate sustainability agenda since employees who truly believe in a cause are better
ambassadors of sustainability compared to those who are merely forced to comply. Similarly,
employees who apparently demonstrate citizenship behaviors genuinely believe in the company’s
ethos and are thus better equipped to help the firm in its sustainability advocacies. To test this, the
researchers enjoined 279 employees of a large food processing company as survey respondents in
a study designed to assess the mediating effect of organizational citizenship behavior on the
hypothesized internal branding - sustainability performance linkage. A company representative
and a seasoned industry practitioner have also invited to cross-validate the survey results through
in-depth interviews. After performing several linear regression analyses, it was revealed that
internal branding practices significantly predicted organizational citizenship behavior and
sustainability performance. Results of the mediation analysis also confirmed that internal branding
practices can have either a direct or indirect effect on sustainability performance, an outcome
which galvanized the mediating role of organizational citizenship behavior. Since the insights of
both interviewees also corroborated survey results, further validation of a priori knowledge about
the constructs was subsequently obtained. The company was thus recommended (a) to maintain
the high quality of its internal branding practices, (b) to keep the momentum which has so far
successfully propelled their corporate sustainability agenda, and (c) to further intensify employee
volunteerism.
Keywords: Internal Branding; Organizational Citizenship Behavior; Sustainability Performance

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JGB 1224
Laguna Consumers’ Buying Tendencies towards HMO
Joseph Emil Santos
De La Salle University, Manila
josephemilsantos@gmail.com

Carlo Miguel Saavedra


De La Salle University, Manila
carlomiguels@gmail.com

Camille Bernadette Alina


De La Salle University, Manila
joseph.santos@dlsu.edu.ph

Abstract
Access to quality healthcare has been one of the major thrusts in the country today. The
government incessantly seeks solutions on how to improve the healthcare systems in the country
and achieve universal healthcare for all. One of the areas that are being carried out by this objective
is how to provide Filipinos better assistance with regard to their health financial needs.
PhilHealth is a tax-exempted Government Corporation that was established to provide
health insurance coverage to citizens of the Philippines. It has established a program that would
help minimize or subsidize medical costs. However, due to several factors, assistance given by
PhilHealth is not enough to solve most of the healthcare issues in the country.
Private companies such as the Health Maintenance Organizations were also established to
provide healthcare insurance to society, it started to cater to employers who are seeking medical
coverage benefits for their employees and its dependent, but due to the changes in the market, it
began to develop and offer healthcare programs to informal sectors or consumers as well. Access
to these different healthcare programs benefits mostly those living in Metro Manila and other key
cities of the Philippines. However, the rural area, where most of the poor segment lives is still
unexplored. With the help of these various HMO products offering, healthcare can be an accessible
need in the country.
Therefore, this study sought to identify the readiness of HMO products and services of
those living outside Metro Manila using the Cue Utilization Theory. With an aim to determine and
understand customer behavior towards a complex product, three cues were initially narrowed down

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based on existing research in terms of what customers prioritize when a complex product is
presented. Data were obtained via physical surveys from 250 respondents from the area of Laguna.
One Way ANOVA was applied in order to test if all 3 cues should be part of a marketing
communications plan. From the survey questionnaire, there were 4 questions presented per cue.
Getting the mean average of each question, the corresponding line item identified consumer’s
willingness to buy towards an HMO’s products and services. Results confirmed that Price and
Product Benefits are important cues based on the respondents or prospective customers of an
HMO. Because the two cues mean difference has no significant difference in the one way ANOVA
performed for this study, research recommends that Price and Product Benefit should be the main
focus in developing new products and what should be amplified in creating an effective marketing
communication strategy for an HMO product. However, it is also recommended to further study
different moderating variables in order to segment the target market efficiently and create a much
more effective Marketing communications plan. HMO companies may create a marketing
campaign that would emphasize the value of having an HMO product in the lives of the consumers
while communicating as well the affordability it offers as compared to paying hospital bills using
the out-of-pocket budget.

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JGB 1259
Let my e-wallet pay: the role of user satisfaction and convenience e-
wallet use
Carlo Miguel Saavedra
De La Salle University
carlo.saavedra@dlsu.edu.ph

Jose Luis Liongson


De La Salle University
jose.luis.liongson@dlsu.edu.ph

Joseph Emil Santos


De La Salle University
josephemilsantos@gmail.com

Abstract
The purpose of this research is to investigate the role of e-wallet user satisfaction on the
user’s intention to use it to make purchases. Partial least squares – structural equation modeling
(PLS-SEM) was the analytical method utilized for this research. The conceptual model adopts the
technology acceptance model of Davis (1989). This study used convenience sampling in order to
select 180 respondents. The study garnered 183 respondents but only 98 of these were valid
because these were the only ones who have used an e-wallet before. In the overall framework,
results showed that satisfaction, triggered by perceived ease of use and usefulness, affected the
user’s intention to use an e-wallet to make purchases (with p-values ≤ 0.01). Furthermore, ease of
use did not affect the perceived usefulness of the e-wallet and user training did not change the
user’s perceived usefulness of the e-wallet. The study suggests that marketers should strive to
develop strategies that increase user satisfaction by making the system useful and easy to use. A
way to accomplish this is by increasing how potential users perceive that the e-wallet makes it
convenient to pay. This present study shows that user satisfaction has an effect on purchasing
behavior. Furthermore, the research directs the way for future research in the concept of user
acceptance of payment through an e-wallet.
Keywords: e-wallet, user satisfaction, structural equation modeling, technology acceptance model
Technological advancement is still very much prominent in current times. As technology
advancement remains on the rise, consumer decisions and purchasing behaviors also change in
response to the proliferation of new tools such as faster smartphones. As of January 2018, 65% of
the adult population currently uses a smartphone (Kemp, 2018)

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Firms, therefore, have to find important factors that affect consumer behavior in order to generate
revenue. One of these factors that have become prevalent in this generation of smartphones is the
e-wallet. E-wallet or electronic wallet allows the consumer to digitally store money. It is often
called other terms like “digital wallet” or “virtual wallet”. An e-wallet gives the consumer many
ways to transact, such as paying bills or purchasing things online. Often coming in many forms,
an e-wallet usually comes in the form of a mobile application where the consumer can do financial
transactions from the convenience of their mobile phone.

As part of understanding the effects of e-wallet use in society, the present research applies
an extension of the technology acceptance model by Davis (1989) which posits that the intention
to accept or reject a particular technology is based on the attitudes formed from the perceived
usefulness and ease of use of the technology.
Theoretical Framework: Technology Acceptance Model
The Technology Acceptance Model (TAM) posits that a person’s intention to use a
technological system is caused by perceived usefulness and ease of use. Perceived usefulness is
when an individual sees that utilizing the technology will enhance performance. Perceived ease of
use, is when a person believes that using the piece of technology will be effortless. TAM posits
that external variables have a causal effect on the individual’s drive to perform a behavior that is
mediated by their perception of usefulness and effortless use.

A conceptual model was created for this research to factor in the role of transaction
convenience and user training as the external variables that affect the intention to use the e-wallet
to make purchases. This research hypothesizes that satisfaction of the user with the e-wallet will
form their attitude towards its use which will then affect their intention to use it for purchases.

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Figure 1. Conceptual Model (Saavedra, 2018 adopted from Davis, 1989)

Hypotheses
Based on Figure 1, the research’s conceptual framework illustrates the relationship of user
satisfaction with the intention to use the e-wallet to make a purchase.
The first and second hypothesis considers the perceived convenience of a consumer in the
usage of the e-wallet to make a purchase. Perceived transaction convenience is the “consumers’
perceived expenditures of time and effort to affect transaction” (Berry et al., 2002). Many research
showed a positive relationship between transaction convenience and technology adoption. Eastin
(2002) showed that transaction convenience has a positive relationship with e-commerce activities.
Yoon and Kim (2007) found that transaction convenience is a determinant of user's adoption and
use of information technology. Liao and Cheung (2002) showed that convenience is a major
quality trait in perceived usefulness. Hayashi (2012) found that convenience and ease of use were
the main drives for consumers to use a particular mode of payment. Hence, this study makes the
following hypotheses:
H1: Perceived transaction convenience (PTC) has a positive effect on perceived usefulness
(PU).
H2: PTC has positively influenced the perceived ease of use (PE).
Perceived usefulness and ease of use is a cognitive belief while satisfaction reflects consumer
effect. Before accepting the technology, a user's attitude is based solely on cognitive beliefs which
are usefulness and ease of use that is potentially formed thru secondary information from others,
mass media, or other sources. Satisfaction, on the other hand, is grounded on users' first-hand

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experience. Users may, therefore underrate their attitudes regarding the technology and overrate
the satisfaction they experience from using the technology (Bhattacherjee, 2001).
H3: PU has a positive effect on Satisfaction
H4: PE has a positive effect on Satisfaction
PE refers to the extent to which an individual believes that using a particular technology
would be effortless (Davis, 1989). Ceteris paribus, a technology that is deemed to be easy to use
will be seen by others to be satisfactory and useful.
H5: PE has a positive effect on PU
Satisfaction is the summing up of an individual’s feelings or attitudes toward some the
circumstances affecting that individual.
H6: Satisfaction has a positive effect on the user’s intention to use an e-wallet for purchases
Methods
This research of understanding the role of e-wallet user satisfaction on the intention to use
it for purchases follows a quantitative explanatory, cross-sectional research design. In this
approach, previous research and together with findings garnered from questionnaire respondents
will be used.
An explanatory research design aims to understand a phenomenon in terms of conditional
statements. It illustrates causal relationships between variables.
Data Collection
The data for this study was collected from consumers via a questionnaire that has been
personally distributed to the respondents. "The survey strategy allows you to collect quantitative
data which you can analyze quantitatively using descriptive and inferential statistics. In addition,
data collected using a survey strategy can be used to suggest possible reasons for particular
relationships between variables and to produce models of these relationships (Saunders, 2016)."
Both descriptive and inferential statistics were used.
Using the SmartPLS system the research will estimate the path analysis model. PLS-SEM
was used to enable the researcher to assess the model by measuring the contribution of each
variable in explaining the variance, which is not possible in regression analysis.
Results
The assessment of the reliability of the model is presented in Table 1. In order to test the
quality of the measurement model, its reliability and validity are evaluated by testing its indicator
reliability, internal consistency via the composite reliability and Cronbach alpha, average variance
extracted (AVE) and the Fornell-Larcker criterion.

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Table 1
Indicator loadings, Average Variance Extracted and Reliability Coefficients
Latent Indicators Loadings Indicator Composite Cronbach AVE
Variable Reliability Reliability Alpha
Perceived PC1 0.744 0.552 0.863 0.760 0.678
Transaction PC2 0.847 0.717
Convenience PC3 0.873 0.762
Perceived PU1 0.812 0.659 0.873 0.782 0.696
Usefulness PU2 0.873 0.762
PU3 0.816 0.666
Perceived PE1 0.708 0.501 0.885 0.828 0.659
Ease of Use PE2 0.850 0.723
PE3 0.863 0.745
PE4 0.818 0.669
Satisfaction ST1 0.882 0.778 0.941 0.916 0.799
ST2 0.933 0.870
ST3 0.876 0.767
ST4 0.884 0.781
Intention IT1 0.885 0.783 0.914 0.858 0.779
IT2 0.891 0.794
IT3 0.872 0.760

The evaluation of the constructs' discriminant validity is shown in Table 2. Fornell-Larcker


criterion was used as the approach in order to assess the constructs’ discriminant validity. The
result showed that the constructs are truly different from one another.

Table 2
Square roots of AVE and correlation coefficients
1 2 3 4 5

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1. Intention 0.883
2. Perceived Convenience 0.772 0.823
3. Perceived Ease of Use 0.711 0.692 0.812
4. Perceived Usefulness 0.816 0.775 0.683 0.834
5. Satisfaction 0.734 0.744 0.789 0.711 0.894

To evaluate the hypothesized direct effects in the model, coefficients for the path model
are presented in Table 3. All of the hypotheses were shown to be supported. Figure 2 illustrates a
summary of the result of the analysis.
A blindfolding procedure was conducted to evaluate the predictive capability of the model
given the parameters of PLS-SEM (Chin, 1998) as shown in Table 4. Cross-validated redundancy
(Q2) is critical in this study as it estimates latent construct. Q2 higher than zero indicates that there
is a predictive relevance in overall models (Fornell & Cha, 1994). All variables were found to have
predictive relevance. R-squared (R2) values for most of the latent variables were found to be
moderate. It is important to note that R-squared values of 0.75, 0.50, or 0.25 for endogenous latent
variables can, as a rough rule of thumb, be respectively described as substantial, moderate, or weak
(Hair, Ringle, & Sarstedt, 2011; Henseler et al., 2009).
Table 3
Path Coefficients for Path models
Hypothesis Path Coefficient* Expected Results
Coefficient
H1: Perceived Transaction Convenience ->
Perceived usefulness 0.580 (0.000) + Supported
H2: Perceived Transaction Convenience ->
Perceived ease of use 0.692 (0.000) + Supported
H3: Perceived Usefulness -> Satisfaction 0.323 (0.002) + Supported
H4: Perceived Ease of Use -> Satisfaction 0.567 (0.000) + Supported
H5: Perceived Ease of Use -> Perceived
Usefulness 0.282 (0.010) + Supported
H6: Satisfaction -> Intention 0.734 (0.000) + Supported
*p-value is italicized beside the path coefficient

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Table 4
Explained Variance and Cross-validated Redundancy
R-
Latent Variable Squared Q-Squared
Intention 0.539 0.393
Perceived Ease of Use 0.479 0.291
Perceived Usefulness 0.642 0.420
Satisfaction 0.677 0.501

Figure 2. Summary of the result of the analysis

Discussion
Results have shown that the intention to use an e-wallet to purchase is significantly
affected by the user's satisfaction with the e-wallet. Transaction convenience has positively
influences perceived usefulness. Fast advancements in technology e-wallet payment have the
capability to be seen as easy to use and useful because it is more portable and flexible which
adds to it being convenient. In keeping with research that uses TAM, perceived usefulness and
ease of use determined attitude, which was represented by satisfaction. It can be seen that
satisfaction significantly influences the intention of consumers to use e-wallets to make
purchases.

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Conclusion
In the present study, it can be concluded that satisfaction has an effect on the consumer’s
intention to use the e-wallet to make purchases. Satisfaction is determined by the extent to which
the user believes that the technology is useful and will make them more productive, and the
extent to which the user believes that using the technology will require minimal effort. In order
to make the technology be perceived as useful, effort should be directed to making the e-wallet
more convenient for the consumer.
Recommendations
It is recommended for brands that have an e-wallet system that they make their system more
convenient for the customer to use. Coupled with a good user interface and user experience, the
consumer will be more satisfied with its use and hence have more intention to use the e-wallet to
purchase goods.
Future Research
Given the researcher’s limited time and resources, the present study faced limitations. These
limitations include the fact that the results may be more generalizable to culturally similar
English-speaking countries like the Philippines than to others. In addition, the sample does not
capture the general sentiments of the population as other respondents who are not from a private
university may have different factors affecting their decision like culture and social group.
In order to strengthen the findings of the present study, replicating the research with a more
representative sample would be beneficial.
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JGB 1281
Marketing and Sustainable Business (Retail)

Benison Cu
Marketing and Advertising Department
De La Salle University-Manila
Benison.cu@dlsu.edu.ph

Abstract
I was inspired by a journal article published by L.W. Turley from Western Kentucky
University and Jean-Charles Chebat from École des Hautes Études Commerciales de Montréal
entitled: “Linking Retail Strategy, Atmospheric Design and Shopping Behaviour” published at the
Journal of Marketing Management last 2002. I applied this research in the Philippine setting by
comparing the millennials’ appreciation of retail atmospheric to their shopping adventure. The
first research was done in 2009. The 200 respondents (200) were students of De La Salle
University – Manila who were under MARKSAM/MARKET2/ADSALES (Sales Management).
67% of the respondents were females and 33% were males. In 2019, I wanted to re-visit if indeed
the results would have altered due to the availability of gadgets. Online shopping is now prevalent
amongst the said age bracket and socio-class to which the students do belong. The respondents
were MADSMAN (Sales Management) students. The author ensured that all respondents have
similar trait from the first to the second study conducted. The results showed that mall owners who
would want their mall to be visited regularly should invest in proper positioning towards their
target market in terms of the physical maintenance of the mall, the right store mix, the ambiance
of the mall and making their customer feel comfortable to stay longer.

Introduction
Since the turn of the millennium, retailing has experienced a rapid growth for certain
categories, while others have failed to attract consumers. As market entry barriers have lowered
due to the technological advancement, three main types of web sites have emerged, namely multi-
brand warehouse, mono brand specialist and showroom sites. With an increasing amount of
worldwide competitors, segmentation, targeting and positioning have become crucial (de
Kervenoael, 2008). According toTurley, Kotler (1973) called this intentional control and
structuring of environmental cues atmospherics. Since then, the accumulated literature has shown
consumers to be sensitive to even minute changes in the retail atmosphere. Even those changes to
environmental stimuli that are not noticed, or consciously perceived by the consumer, are capable
of causing shoppers to change behaviors while inside the store (Turley and Milliman 2000;
Milliman 1982; Gulas and Schewe 1994; Andrus 1986). Additionally, two studies conducted in a

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service setting also indicate that when a complete atmospheric redesign was performed and the
entire atmosphere was altered, consumer perceptions of the facility also changed significantly
(Pinto and Leonidas 1994; Andrus 1986).

Research Objectives.
This research has the following objectives:

To determine what factors affect the following behavior of potential and actual consumers or
patrons of malls. Based on the framework discussed earlier, the proponent would like to find out
the following based from the stage 1 and stage 2 of the framework:

1. What would make the target market purchase more items in the mall?
2. What would it take to make the target market stay longer in the mall?
3. Would the target market be inclined to use the physical facilities of the mall?

Framework
STORE ATMOSPHERE

Retail Strategy

Target Market Retail Market Competitive


Advantage
(First Stage)

Factored Influence

Atmospheric Design

Exterior
General Interior
Layout and Design
Pop and Decorations
Human Factors
(Second Stage)

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Factor Assessment

Outcome Issues and Shopping Behavior

Sales Effects
Approach- Avoidance Behavior
Store Image
Retainment
Segmentation Tool Design Uniformity
Differential Advantage over E-Tailers
(Third Stage)

Methodology
The researcher surveyed the students taking Sales Management under the Leaning-by-
Doing program of the Marketing Management Department of De La Salle University-Manila. In
this paper, the proponent subjected the results using linear regression analysis to find the
relationship behavior of the dependent variables (D1, D2, D3, D4, D5 and D6) with the
independent variables.

Store Atmosphere as a Retail Strategy

The conceptual framework figure represents an approach which would allow the
atmosphere to be integrated into the strategic planning process. This figure divides strategic
planning on this issue into three separate components. In the first stage, general retail strategies
are developed which would encompass a number of controllable variables including the retail
atmosphere. In the second stage a specific atmospheric outcome is designed and eventually
implemented through store redesigns and in newly constructed stores. Finally, the model
recognizes that these designs will have some very specific effects on shopping behavior and may
raise some issues which impact on these consumer behavior effects. The feedback loop from the
outcome issues and shopping behaviors section back to the retail strategy stage recognizes that the
outcomes from the store’s atmosphere may influence the strategies which are set after the design
has been implemented. The central point associated with the framework is that retail executives
implement retail strategy for how they want consumers to respond to an atmosphere through the
designs that they shape through blending the various atmospheric stimuli into a meaningful
environment. The following sections of this paper will discuss the stages in the atmospheric
planning process.

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Retail Strategy

Retail firms interact directly with consumers and rely on being able to furnish goods and
services which satisfy their needs and wants; therefore, retailers need to embrace a consumer
orientation when thinking strategically. Day (1994) argues that market-driven organizations
should adopt an emerging capabilities approach to strategy which explicitly seeks the sources of
defensible, competitive elements in the distinctive, difficult to duplicate capabilities the firm has
developed. One difficult to duplicate strategic element that some firms have used to differentiate
themselves is retail atmosphere. Moreover, Lewison (1997) describes three elements associated
with retail strategies; choosing a retail format, targeting a specific group of consumers and arriving
at a defensible competitive advantage. In this context, choosing a retail format involves choosing
from among a number of operating and merchandising tactics while a competitive advantage is a
superior or unique aspect associated with the retailer who is capable of delivering need satisfaction
to the intended target market. As noted earlier, at least some chains seem to be using the store
environment as a method for creating a differential advantage in the marketplace.

The atmosphere of a store can serve as an important differential or competitive advantage.


Finding a differential advantage is as critical for retailers as it is when marketing products since
finding a sustainable differential advantage allows a retailer to keep from focusing solely on price
as a differentiating trait. In many retail industries, managers do not have a lot of avenues for
making their stores truly unique from their competitors. Emphasizing private brands in
merchandise assortments, focusing on delivering distinctive service and creating unique
atmospherics are often the only true options for managers when attempting to differentiate a store.

In cases where the merchandise carried by competitive retailers is perceived as similar by


consumers, the atmosphere probably becomes even more important and creating a unique
environment even more necessary. In this context the atmosphere inside the store may become the
element in the retail mix which allows a retailer to create a unique dimension to shopping there.
Therefore, finding a unique and effective atmospheric design should be a primary concern for
retailers in these types of competitive situations.

Atmospheric Design

Once the role of the environment in the strategic goals for the retailer has been identified,
the specific atmosphere can then be developed. This can be a difficult task since the retail
environment is exceedingly complex and is composed of a wide variety of variables and elements.
In addition, implementing a chosen design in large chains takes time, money and a great deal of
managerial attention. Although choosing a design can be difficult, implementing a redesign in an
established chain can be even more complex for operations- oriented retail executives to
accomplish.

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As noted by Turley and Milliman (2000), this complex environment can be divided into
five categories of atmospheric cues. The exterior includes cues such as the building size and shape,
the marquee, exterior windows, parking availability and the surrounding area. The general interior
includes atmospheric variables like lighting, music, interior colors, ambient scents, temperature
and general cleanliness of the store. Layout and design variables are comprised of variables such
as merchandise groupings, traffic flow and aisle placements, department locations, racks and
fixtures, and placements of cash registers. Point-of-purchase and decoration variables are
composed of atmospheric elements like point-of-purchase displays, signs and cards, product
displays and interactive displays and kiosks. Human variables in the environment include
dimensions such as employee characteristics, employee uniforms and retail crowding and density.
The elements associated with these five categories of the retail environment should not be
developed separately but rather to accomplish the goals associated with a chosen retail strategy.

Outcome Issues and Shopping Behavior

The final stage in this strategic view of the retail environment focuses on the outcome
issues and shopping behaviors. The atmosphere can influence a wide variety of attitudes and
behaviors in consumers which, in turn, raises several managerial issues which should be
recognized. These outcome issues and shopping behaviors include sales effects, approach-
avoidance behavior, impact on store image, a differentiation tool, atmospherics as a segmentation
tool, uniformity issues, implementation problems, the impact of the environment on employees,
the “retainment” aspect of the atmosphere, and the environment as a strategic weapon against e-
tailers.

Sales Effects

The most basic argument which can be made for managing atmospheric designs and
impressions is based on simple economics. Turley and Milliman’s (2000) review of experimental
atmospheric and servicescape studies noted that the link between atmosphere and sales is very
strong and robust. They cited and reviewed 28 studies which used sales as a dependent variable.
Of these, 25 found some statistical relationship between changes in the retail environment and
sales. Studies of environmentally related sales effects have focused on a wide variety of
atmospheric stimuli including music , product display and shelf space, in-store signage ,
atmospheric colors, window displays (Edwards and Shackley 1992) and odors (Hirsch 1995).
With this mentioned, the environment has the capacity to influence purchasing behavior of
shoppers in a wide variety of types and classifications of retail stores. Second, relatively small
changes in a number of the many elements in the retail environment can have an impact on sales
and purchasing behavior.

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Approach-Avoidance Behavior

A behavioral reaction to a retail atmosphere which is somewhat related to sales, is


approach-avoidance behavior (Meharabian and Russell, 1974). Approach behaviors are
manifested in positive responses to an environment including a desire to explore it and willingness
to stay in it for relatively long periods of time. In contrast, avoidance behaviors are associated with
negative reactions to an environment including a desire to leave and not return.

Donovan and Rossiter (1982) extended Meharabian and Russell’s work into retail
environments and suggested that the effects of a store’s atmosphere are manifested in emotional
states which are difficult to express verbally, are transient and may not always be fully recalled
when questioned later, and are likely to influence in-store behaviors more than store choice
decisions. Donovan and Rossiter’s conceptualization of store atmosphere clearly saw this as a tool
which affected consumers emotionally and had the ability to influence shopping behavior at the
point of sale. When viewed collectively, these retail specific studies strongly suggest that the
atmosphere created by a store’s physical facility has an effect on consumer approach-avoidance
behavior (Turley and Milliman, 2000).

The store’s environment clearly influences a consumer’s desire to undertake what can be
called browsing behavior, that is, staying in a store and exploring what it has to offer. Browsing
behavior is likely to directly influence planned shopping behavior and impulse purchasing, as well
as knowledge about the store. Although consumers may shop in stores they consider unpleasant
and unattractive, the research in this area indicates that they will spend less time and money in
these stores.

Impact on Store Image

Marketers have known for some time that the store environment is used by many
consumers as a component when forming perceptions of store image (Berman and Evans, 1998).
Retail image can be described as “the way a retailer is defined in a shopper’s mind, partly by its
functional qualities and partly by an aura of psychological attributes” Martineau, 1958). Although
there are some retail services, called facility-driven services, such as golf courses and automated
car washes where the consumer purchase involves the right to interact with the physical facility
(Turley and Fugate, 1992), for most retailers the atmosphere would be considered a “psychological
attribute” of store image.

The formation of store image is a complex process which can be influenced by a number
of variables, and has been difficult for researchers to conceptualize. Once formed, store image is
associated with a number of critical behaviors and variables including store patronage proportion

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of the household budget spent at the store (Hildebrandt, 1988) and the image of the brands carried
in the store (Pettijohn, Mellott and Pettijohn ,1992).

From a managerial and strategic perspective, the atmosphere of a store represents a


component of store image which is not as easily matched or duplicated as some of the other
components. Retail prices, customer services, merchandise assortments, and advertising and sales
promotions are store image components which can be changed with relative ease to neutralize the
advantages enjoyed by competitors. A retail environment or atmosphere, however, is very
expensive to change particularly for large chain stores. Once a well-defined, unique and successful
atmospheric design has been chosen, and then implemented, a retailer can expect this to
differentiate it from its competitors for some time.

Atmospherics as a Segmentation Tool

From a managerial perspective, one of the most interesting and important findings from
this research stream is that retail environments affect various groups of consumers differently.
Although this issue has not been formally addressed in more than a handful of studies, different
researchers have reached this same conclusion. Bitner (1992) noted that consumers can respond to
a retail store cognitively, emotionally and physiologically and that studies in psychology have
found that individual personality traits can influence reactions to environments (Meharabian and
Russell, 1974; Russell and Snodgrass, 1991). Herrington and Capella (1994) also argued that other
segmentation variables, such as gender, may influence reactions to, and perceptions of, a retail
atmosphere.

Several studies have found these variant reactions to environments by individuals in


different market segments. For example, Yalch and Spangenberg (1988) found that younger
shoppers reported spending more time shopping with background music conditions while older
shoppers perceived they spent more time in the store when foreground music was played through
the store’s public announcement system. In this study, background music was defined as music
with no lyrics while foreground music conditions utilized music with lyrics. In a similar study,
Gulas and Schewe (1994) also found age-linked effects between in-store music and shopping
behavior. They reported that baby boomers purchased at significantly higher rates when classic
rock was played inside the store and that this type of music had a negative effect on older
consumers. Interestingly, older consumers purchased less when any style of music was played than
they did in the control (no music) condition. Joyce and Lambert (1996) also reported some age-
related differences when they found that younger consumers felt more favorable about the store
images used in the study than did the older group of consumers.

Uniformity Issues

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One of the most basic atmospheric problems many chains face is deciding how uniform
their store designs should be. Some chains opt for building what some managers call prototype
designs, that is stores which are virtual carbon copies of each other. These types of store designs
tend to be developed centrally and local store managers are expected to rigidly follow the designs
and displays which have been centrally adopted for the chain. In some of these chains store
managers are sent detailed step-by-step instructions of what the display should look like (often
accompanied by a picture of the final result) and may even require that a picture from the field be
sent back to the firm’s visual merchandising personnel. The thinking behind this approach is that
these types of rigid environments are likely to yield more consistent perceptions and expectations
of the store and that a “brand package” can be created by developing a consistent look.
Disadvantages of this approach include high costs during periods when chain-wide store redesigns
occur, the inability to capitalize on local themes, and centralized planners who are distant from
final consumers and may not fully understand their tastes and preferences.

Other stores decentralize store design and allow for a variety of atmospheres to be created
by local store personnel. In some cases, these designs are “localized” and feature images and
decorations which are indigenous to that particular community or region. An example would be a
fast-food restaurant that used decorations and pictures which featured a local university and its
sports teams. Chains which opt for the decentralized approach to store design often hope that these
varied designs will slow consumers down and therefore increase impulse purchasing. This
approach may also recognize that, in some contexts and situations, regional subcultures may
mediate perceptions of a prototype design and yield different perceptions to the same design.
Disadvantages of this approach include the possibility of very diverse images and general
attractiveness of outlets as well as the fact that store image is being constructed by a wide variety
of differently trained personnel. Because of the problems associated with the possibility of widely
discrepant images for outlets in the same chain, this option appears to have become less popular
in recent years.

Finally, some retail organizations use a blended approach. In these chains, every store has
some similarities, perhaps in marquees, promotional signage material and colors, but also leave
room for variations in design where needed. This approach tries to combine the advantages of both
the prototype and decentralized designs while minimizing their disadvantages. The extent to which
this works is obviously dictated by what degree of standardization is required and what types of
variations are allowed. Many chains have been forced into this option due to the lack of uniformity
in size and shape of spaces available in many shopping centers. Many retailers have found that
they have to be able to expand and contract an atmospheric design theme because of this lack of
uniformity in facility shape and size across location alternatives. Retailers that build freestanding
locations obviously do not face this constraint, but still might find that they have to modify their
designs because of local and state ordinances. Retailers with wide geographic target markets often

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find that some atmospheric elements, like lighting and exterior signs, may be subject to different
ordinances and rules in different nations, states, regions, cities and even shopping centers.

Implementing an Environmental Design

An issue that is strongly related to atmospheric uniformity concerns implementing a chosen


plan for a chain’s atmospheric design. Obviously, this becomes a more problematic issue as the
number of stores in a chain increases and the geographic coverage of that chain increases.

For existing retailers, the first step may be to conduct an atmospheric audit (Turley, 2000).
A marketing audit involves a systematic, critical and impartial analysis of a firm’s marketing
operations (Mokwa, 1986). A marketing audit can be very broad and cover the entire operation, or
it can be specialized and focus on one area of a business. In contrast, an atmospheric audit would
involve an in-depth and systematic examination and evaluation of the retail selling environment.
An atmospheric audit would consist of recording and evaluating each variable in a retail
environment.

It is vitally important that retailers conduct atmospheric audits on a regular basis (Turley,
2000). The retail business is constantly changing and new design trends emerge as consumers
embrace some changes and reject others. New merchandise also sometimes requires changes in
merchandise arrangements and layouts, and is sometimes accompanied by new point-of purchase
display material. Also, because of the high traffic in many retail stores, stores periodically can
become “shop-worn” and appear tried to consumers. Because retail managers are constantly in
these stores, they may not see them objectively and in the same way that consumers do. An
atmospheric audit helps retail management take a critical look at this aspect of their business. After
conducting the audit, retail executives must then decide if a redesign of the store is needed, how
much change is needed, and if all stores in the chain will adopt uniform or prototype designs.
Complete redesigns of large stores can be expensive. Montgomery Ward, an old and established
American department store chain, was in the process of redesigning stores when they announced
in December of 2000 that they were going out of business. Industry reports estimated that it was
costing Montgomery Ward as much as $2 million per store to renovate (Grant 2000).

Shopping as “Retainment”

Atmospheric elements which can be used to entertain consumers include music, in-store
televisions, interactive displays and kiosks, live performances by a variety of artists, product use
demonstrations and seminars and in-store restaurants. Most of these attempts at entertaining
customers recognize that keeping shoppers in stores longer is likely to result in increased browsing
behavior, which in turn is likely to cause increased impulse purchasing (Beatty and Ferrell, 1998).

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Also, keeping customers in one’s store longer may also decrease the time available to shop in a
competitor’s store making this a good defensive weapon for retailers.

A Differential Advantage not Available to Pure Internet Retailers

Although the long-term impact of the Internet on retailing is still not clear, at least some
consumers appear to be willing to shop for a wide variety of merchandise on the Web. Even though
shopping on the Internet provides consumers with a number of advantages, there are also some
weaknesses associated with this medium. One of the most glaring disadvantages is that a website
can not completely surround the product, or the fill up the consumer’s senses, the way an
atmosphere can when a consumer is physically inside a store. Reaction to the environment is a
strong influence on consumers’ perceptions of the quality of the merchandise in the store (Baker,
Grewal and Parasuraman, 1994) which may provide an advantage to retailers that operate
traditional brick-and-mortar stores.

Methodology

According to Rumsey (2003), linear regression is a form of regression analysis in which


the relationship between one or more independent variables and another variable over the
dependent variables. This function is a linear combination of one or more model parameters, called
regression coefficients. A linear regression equation with one independent variable represents a
straight line when the predicted value (from the regression equation) is plotted against the
independent variable: this is called a simple linear regression. How would the independent
variables affect and be significant is the goal of the proponent.

Results

The respondents’ demographics were as follows: 30% were males and 70% were females.
The respondents’ family income ranged from Php 100,000 and above (48%), Php 50,000 to Php
991,999 (34%) and P50,000 and below (18%). Below is the list of the respondents’ preferred malls
to shop (Table 1):

Table 1: Respondents’ Preferred Malls to Shop


Respondents’ Preferred Malls To Shop Percent of respondents

Ayala Malls 58%


SM Malls 16%
Robinsons Malls 8%
Shangrila 8%
Rockwell mall 7%
Greenhills 3%

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Table 2. Codes Used for Data Analysis


Code Definition
A Do I go to the Mall to shop?
B1 I find the location of the mall to be convenient
B2 the mall suites my taste and personality
B3 I find the items in the mall relatively cheaper and accessible
B4 I am able to associate myself with the crowd
B5 I am attracted to the promotion and classified advertisements
C1 Exterior i.e. the appearance of the mall outside
C2 General Interior i.e. tiles, lights etc.
C3 Layout design i.e. corridors and store alignment
C4 Decorations and Props
C5 Human Factors i.e. guards, sales rep cleaners etc
D1 inclined to purchase more items in the mall
D2 inclined to stay longer in the mall
D3 inclined to stay shorter than usual in the mall
D4 inclined to use the physical facilities of the mall
D5 inclined to purchase in the mall than that of the internet
D6 I find the mall appealing to me and to that of the opposite sex
AA I find the mall to be classy and fits my taste
BB I think that the mall is for the general masses
CC I see that the mall is family- oriented
DD I find the mall to be a preferred place to hang out with friends
EE I find the mall to be a preferred place to hang out with family
FF I find the mall that I go to meets the world- class standards
GG I find the mall that I go to is charitable and helps the community or the country
HH I find the mall that I go to is environment- conscious
II I find the products and services of the mall to be of good quality
JJ I find the facilities of the mall to be world- class
KK I find the staff and crew of the mall that I go to give the best service to its customers
LL I find the mall to be the most convenient way of buying items
MM I find the mall to be the best venue for sellers to sell their products
NN I find the mall to be the best place to advertise the products of sellers
OO I find the mall to be a trailblazer in what is “in” and what is “out”

Earlier test shows that the independent variables that affected the dependent variable (D1) were
B2, B3 and B5. The respondents indicated that they were more likely to purchase more in the mall
(1) if the mall suited their personality and taste, (2) if the items in the mall were relatively cheaper
and accessible and (3) if there were attractive promotion and classified advertisements.

Another test shows that the independent variables that affected the dependent variable (D2)
were B1, B3, B4 and B5. This implies that the factors that will encouraged the respondents stay
longer in the mall were 1) if the mall’s location was convenient, 2) if the items in the mall were

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cheaper and (3) if the respondents could easily associate themselves with the crowd and (4) if there
were attractive promotion and classified advertisements.

The same test shows that the independent variables that affected the dependent variable (D2)
were B1, B3, B4 and B5. This implies that the factors that will encouraged the respondents stay
longer in the mall were 1) if the mall’s location was convenient, 2) if the items in the mall were
cheaper and (3) if the respondents could easily associate themselves with the crowd and (4) if there
were attractive promotion and classified advertisements

But another test shows that the independent variables that affected the dependent variable (D4)
were B1, B2, B3, B4 and B5. The results indicate that whenever they go shopping to the mall, they
would probably use the physical facilities of the mall. Similarly. the test shows that the independent
variables that affected the dependent variable (D4) were B1, B2, B3, B4 and B5. Since internet
shopping is not that yet adopted by most Filipinos, it was expected that most if not all of the
respondents still opted to purchase items in the mall rather than any other medium.

The results of the regression analysis in the dependent variable, to stay longer in the mall, show
that the respondents will stay longer if they find the mall classy (AA), Family Oriented (CC),
Preferred hang out place (EE) and if they find the products and services to be of quality.

Also regression analysis in the dependent variable, to stay shorter in the mall, indicate that if
the mall do not suite up the taste (AA) and if it is not family oriented (CC) and if it is not much of
a convenience to buy from it (LL), then there is no incentive for the respondents to stay longer as
indicated by a negative coefficient meaning there is an inverse relationship of the independent
variables and of the dependent.

The result of the regression analysis in the dependent variable, to use the physical facilities of
the mall, indicates that the respondents find the product and service to be of quality (II) and also
environment conscious (HH). Family oriented-ness also is a factor.

The other result of the regression analysis in the dependent variable, to purchase in the mall
than in the web, indicates that the respondents still find the mall to be the most convenient way of
buying items (LL). Also the results show that the respondents still find the mall to be the best
location to place ones products for the customers to obtain it (NN).

The final result of the regression analysis in the dependent variable, the mall is appealing to me
and that of the opposite sex indicates that the respondents find the mall appealing if it is the
preferred place to hang out with friend (DD). Also if, it has world class standards (FF), it is
charitable and helps the community and country (GG) and if it is environment conscious (HH).

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It is also appealing if the mall is the best venue for sellers to showcase their products (MM) and
lastly it also helps if the mall places good spots for sellers to maximize their advertisements in the
mall (NN).

Conclusion

Based on the results given, the researcher concludes that for the mall owners who would want
their mall to be visited regularly, there is a need to invest in proper positioning towards their target
market in terms of the physical maintenance of the mall, the right store mix, the ambiance of the
mall and making their customer feel comfortable to staying on. This study has the following
conclusions:

1. What would make the target market be inclined to purchase more items in the mall?

The results showed the mall owner should propped up the store performance by providing
promotional mixes that would attract the customers to purchase now rather than postponing their
purchase like mall-wide sale, special events to attract customers. Mix these up with appealing to
the senses of making the customer feel they belong in the place.

2. What would it take to make the target market be inclined to stay longer in the mall?

Trend-setting designs of products together with affordable prices will also encourage buyers to
spend now. Knowing that the respondents are highly aware of selling techniques, this paper
showed that they are very much mall goers and the different in-mall events still appeal to them.

3. Would the target market be inclined to use the physical facilities of the mall?

Making the mall a place for them to feel comfortable and a regular place to go to, mall owners
and even their tenants can use these opportunities to maximize the use of retail mix that would
include – store front, display, inventory, point-of-purchase materials, people (staffs), lighting, and
even the ambiance of the store.

References (This can be made available upon request.)

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JGB 1203
Marketing Strategies of the Furniture Businesses in Pangasinan:
Innovating a Traditional Industry of Pangasinan
Dr. Jeanica Joson
University of Luzon
josonjeanica@gmail.com

Abstract
This study examines some factors concerning the innovation of the furniture industry in
Pangasinan focusing on assessing the marketing strategies utilized by the furniture owners or
operators. Marketing strategies play a vital role to make the business stay in the market. In the
furniture industry, stiff competition in business requires appropriate marketing strategies since
furniture businesses are operating in a competitive environment where customers are demanding
for value for money meaning good products for every peso. As the world economy is developing,
the furniture markets have opened up more and the furniture industry has been growing fast. In
Pangasinan, the furniture business is one of the traditional and flourishing industries. One of the
reasons why businessmen enter in this type of industry is because of the high profitability per unit.
It attracts aggressive entrepreneurs to enter and to capture a share in the furniture market. Hence,
very keen competition is evident in this industry. If the owners or operators of the furniture
businesses in Pangasinan determine the right strategies for the business and making use of market
opportunities will be the key to profitability. The business’ ability to come up with new product
innovations through creative designs and the use of various forms of endemic materials will be the
key to the future of the industry. Thus, this paper aims to innovate the marketing strategies focusing
on product, price, promotion, and place or distribution of this business – furniture industry.
Keywords: Marketing Strategies, Furniture Businesses, Innovation, Traditional Industry,
Pangasinan

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JGB 1267
Moderating Effect of Gadget-Loving towards ICT/IS Adoption
Intention
Raymund Dimaranan
De La Salle University, Manila
raymund.dimaranan@dlsu.edu.ph

Abstract:

It is important to learn about the factors that influence ICT/IS adoption to be able to help
organizations implement successful IS. This study assessed the moderating effect of gadget-loving
on perceived ICT knowledge, technology adoption, and self- determination towards ICT/IS
Adoption. This research utilized a descriptive-causal research design and homogeneous purposive
sampling. All of the respondents were 113 qualified respondents where 91.2% are considering
adopting ICT/IS in their future work. Respondents were found to fall either the early majority or
late majority following the Diffusion of Innovation (DOI) theory. A survey instrument was an
accumulation of adaptations from several studies. R-Studio and R-commander -Binary logistic
regression was used. Gadget-loving was the only variable that was observed to be a statistically
significant predictor to ICT/IS adoption intention. When used as a moderating variable, it was
found to have some enhancing effect on perceived ICT knowledge.

Keywords: ICT/IS Adoption Intention; Gadget-Loving; Self-Determination; Technology


Adoption;

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JGB 1227
Security of Tenure versus Management Prerogatives: A Study on
the Legal Implications of Security of Tenure which Affects the
Sustainability of the Global Enterprise
Atty. John Evan Miguel
Chair, Career Development Program
De La Salle-College of Saint Benilde, Manila
johnevan.miguel@benilde.edu.ph

Abstract
This study aims to identify the legal and policy implications of the principle of “security of
tenure” granted to Filipino workers. The recent shifts of the Duterte government’s policy of
proscribing labor only contractualization and the practice of “Endo” (end of contract) by the
employers, further strengthen the rights of employees to the security of tenure but affects the
employer’s right to use management prerogative. The security of tenure of workers in their
profession and employment is a property right protected under the constitution. (JMM Promotions
vs Court of Appeals,G.R. No. 120095, August 5, 1996) the above-quoted case law states that
workers could not be deprived of their right to work without due process of law. Moreover, the
right of workers for the security of tenure is explicitly enshrined under Article 13, Section 3 of the
1987 Constitution that states to wit: “They shall be entitled to security of tenure, humane conditions
of work, and a living wage. They shall also participate in policy and decision-making processes
affecting their rights and benefits as may be provided by law.” This study endeavors to analyze
and evaluate the implications of the security of tenure that affects the sustainability of the global
enterprise.
Keywords: Labor Relations, Management Prerogatives, Security of Tenure, Industrial Peace,
Sustainable Enterprise.

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JGB 1263
Self-Perceived Sustainability of a Smallholder Mushroom Farm
Venture in Marilao, Bulacan: Using FAO SAFA Framework

Virgilia J. Arispe
PhD Student
De La Salle University
virgilia_arispe@dlsu.edu.ph

Abstract:

Social Enterprises nowadays, whether it be a profit goal-oriented or non-profit goal-oriented


venture, are no longer judged or ruled solely on their ability to deliver goods and services but also
on the manner of how they deliver and how they impact the society and the environment, it is often
shown in the sustainability policy of an organization. In this study, it tried to examine and discuss
the sustainability of a small mushroom farm business venture, where there is a goal of not only
earning profit but also to help improve the country’s agricultural sector, using the four dimensions;
good governance, economic resiliency, environmental integrity and social well-being of
Sustainability Assessment of Food and Agriculture Systems (SAFA). Individual structured
interviews based on the SAFA guidelines were conducted and the results analyzed with the SAFA
Smallholder App Tool version 2.0.0. And it showed the following results: Of the 21 sustainability
themes, the mushroom farm has a good performance on the following 10 themes: corporate ethics,
accountability, participation, holistic management, water, local economy, fair trading practices,
human health and safety, labor rights, cultural diversity. There are 9 themes of moderate
performance where they could improve: rule of law, atmosphere, biodiversity, materials and
energy, investment, vulnerability, product quality and information, decent livelihood, equity. The
key results indicate that there is a bigger room for sustainability improvement in the mushroom
farming system in the province given proper advancement in techniques.

Keywords: Sustainability Assessment, Smallholder Mushroom Farm, SAFA Framework,


Sustainable Mushroom Farming.

INTRODUCTION
Significant challenges remain to be created on the national and global approaches to help
the more extensive emergence of more sustainable types of food production across both
industrialized and developing nations. Sustainability assessment in food and agriculture is required
as a tool to demonstrate and give the advantages of sustainability for farmers. Completing
evaluation not just empowers farmers to comprehend their farm activities but enables them to build
a database of information and records, which can be utilized to help environmental, social and
other cases. This information, if shared with consumers may help in the advancement of techniques
that may enhance the sustainability of farmers and help them attain better costs (Omare, 2014).

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Moreover, Daniele Giovannucci – FAO President (2015), stated that small-scale farming
is a fundamental supporter of the sustenance of food and fiber needs of numerous nations. Farming
is likewise a major employer in more than a hundred countries and often shapes a vibrant part of
their social identity. However, rural areas in developing nations also hold two-thirds of the world’s
poorest and various elements ranging from soil degradation, water shortage, and environmental
change, to challenging markets and macro-economic changes, progressively obstruct their
sustainability. On the off chance that small farmers are to be part of the solutions – and there is
no viable option in many places – at that point, they must be bolstered in building their own
comprehension of the numerous aspects of sustainability that affect them and that affect all.
Furthermore, worldwide exchange and governance on public goods (for example
atmosphere, biodiversity, sustenance security, monetary dependability), intensified by the growth
of sustainability plans, require a multi-party participation that must be upheld by "basic principles"
so as to lessen fracture, avoid clashes, relieve vulnerability and build capacities with regards to
compelling manageability idea (FAO, 2014). In any case, it takes a few elements to cooperate to
produce and convey the food needed through an agricultural segment in the developing nation.
There is a dynamic and complex biological system requirement to outfit agribusiness to adapt to
the contending difficulties of tending or sustaining food safety and food security, developing
livelihoods, mitigating environmental change and economically managing natural resources.
In the Philippines, in its 2017-2022 Philippine Development Plan, it tries to: extend
economic opportunities for the individuals who are engaged with agriculture; Lagging economic
sectors like agriculturists and fisherfolk will be given priority and will have less demanding access
to financial chances. Doing as such will empower them to share in economic activities and
development (NEDA, 2018). Yet, in a report of De Guzman (Philippine Star – June 2018), she
said that agriculture is dying. This is a sad truth of the nation. Agricultural land is being created as
industrial areas, shopping centers, and subdivisions. Farmers are getting old and their youngsters
have moved into different careers. The farming industry has not advanced in a long time. A large
number of our agricultural schools are now offering office-oriented careers who might much
preferably do paperwork over helping enhance the agricultural segment of the nation. Also, the
numerous frightening accounts of corruption occurring at the Department of Agriculture. A year
ago the Department of Agriculture had a spending allocation of P46 billion. This year the financial
allocation is P60.6 billion. One year from now, it is relied upon to go up to P124 billion
(Department of Agriculture, 2017).
This study would like to focus on the local Municipality of Marilao Bulacan which just
been awarded with the Seal of Good Local Governance in the year 2015, also recognized as one
of the Philippines' first-class municipalities that make it to the top 20 in generating locally sourced
revenues in 2012 and was awarded as one of the outstanding local government unit in The
Luminaries Award 2014 (Ulat sa Bayan, 2015). One of its programs towards improving its
economic growth and increase livelihood is through its support to the farmers. It was mentioned
that there are 13 projects and 16 pieces of training that have been set and planned for the Marilenos
under the agricultural sector for the year 2016 up to 2017, one of the activities mentioned is the
mushroom production (Marilenos Newspaper - 2017).
Mushroom farming fits-in extremely well with sustainable agriculture and has a few points
of interest. It utilizes agricultural waste materials. A high generation for each surface area can be
acquired, likewise after harvesting the utilized substrate is as yet a good soil conditioner. The
Mushrooms are a great money source. One model is that of the oyster mushroom, which gives
high protein substance and low Ash content. Thus, fruiting bodies of oyster mushrooms can be

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taken consistently as a protein supplement or as an alternative protein supplement in the diet
regimen. The low lipid and high fiber substance of the oyster mushroom makes it helpful
nourishment, particularly against coronary illness and diabetes. The best developing season is
mid-March/April to September/October and in the lower areas from September/October to
March/April. (Randive, 2012) Many elements might be associated with the distinction of the
nutritional composition of mushrooms developed in various substrates. The mushroom farm
community is pleased with its long-standing record as one of the significant stewards of the world's
resources, transforming the waste products of other agricultural products into a delectable,
nutritious food. Mushroom producers keep on discovering approaches to decrease its effect on the
environment and turn out to be better stewards of the land and preservation practitioners. From the
reusing of agricultural byproducts to decreasing inputs on the farm and at the packaging and
processing facilities, the U.S. mushroom farm community is grasping environmental management
and making a more grounded, progressively sustainable future for its farmers and neighbors (Lonie
and Phelps, 2011).
Thus, this study would like to examine the sustainability of this mushroom farm in Marilao
Bulacan named "Buttons Up Mushroom Farm" through the lens of good governance, economic
resiliency, environmental integrity, and social well-being. Also, how does this Sustainability
Assessment on Food and Agriculture be useful in the context of mushroom farmers towards greater
sustainability and whether SAFA smallholder tool and guidelines can be applicable to smallholder
mushroom growers in the Philippines as well?

Research Problem

In accordance with the sustainability issues that have been described previously, the
following questions will guide the research:
1. What are the main challenges of the Mushroom Farm in terms of the following sustainability
dimensions: Economic Resiliency, Environmental Integrity, Good Governance, and Social
Well-being?
2. How does this Sustainability Assessment on Food and Agriculture be useful in the context of
mushroom farmers towards greater sustainability?
3. What lessons can be drawn for applying Sustainability Assessment on Food and Agriculture
or the SAFA approach towards another context?

THEORETICAL FRAMEWORK

The Sustainability Assessment of Food and Agriculture framework (SAFA) was utilized in this
study, an initiative led by Nadia El-Hage Scialabba of Natural Resources Management and
Environment Department and which framework was first characterized through an FAO
participation with the International Social and Environmental Accreditation and Labeling
(ISEAL). This study involves the SAFA’s four sustainability structure namely: good governance,
economic resiliency, environmental integrity and social well-being with twenty-one sustainability
topics, which are characterized by fifty-eight subthemes. This SAFA framework is intended to be
used by small, medium and large-scale organizations and other stakeholders that are engaged in
the agricultural segment (FAO, 2013). Thus, this framework was chosen for this study because of
its wide manageability measurements scope, its relevance to smallholder farmers and its simple
design and application time and resource requirements, when compared with more context-specific

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frameworks (Gasso et al., 2014). Another aspect of this SAFA Smallholders App tool is its
capacity-building purpose to help assess and eventually help improve sustainability performance.
For a small-scale farmer, improving sustainability is essential for the continuation of farming
activities and livelihoods, rather than a mere performance appraisal of farmers and equipment
which is commonly done by many agricultural organizations. Several indicators will assess the
practitioner’s awareness of a trend rather than on actual measurements (e.g. “Profitability” focuses
on smallholder’ knowledge of revenue and cost values, rather on recording the actual amounts).
To help in this assessment, the SAFA Smallholder App tool, which is free of charge mobile
application (form 2.0.0) was utilized. Made by FAO to implement the SAFA Guidelines (rendition
3.0) for the sustainability assessment of small-scale agriculture producers.

Conceptual Framework

The SAFA framework begins with the high-level, overarching dimensions of sustainability:
good governance, environmental integrity, economic resilience, and social wellbeing. This
framework was adapted and anchored to the needs of the mushroom grower in Bulacan.

Economic Resilience Social Well Being


C1 INVESTMENT S1 DECENT LIVELIHOOD
C2 VULNERABILITY S2 FAIR TRADING PRACTICES
C3 PRODUCT QUALITY AND INFORMATION S3 LABOUR RIGHTS
C4 LOCAL ECONOMY S4 EQUITY
SUSTAINABL S5 HUMAN HEALTH AND SAFETY
E MUSHROOM S6 CULTURAL DIVERSITY
FARMING
Good Governance Environmental Integrity
G1 CORPORATE ETHICS E1 ATMOSPHERE
G2 ACCOUNTABILITY E2 Water
G3 PARTICIPATION E3 Land
G4 RULE OF LAW E4 Biodiversity
G5 HOLISTIC MANAGEMENT E5 Materials and Energy
E6 ANIMAL WELFARE

Figure 2. Conceptual framework (Adopted on FAO, 2013)

The independent variables in this research are Good Governance, Environmental Integrity,
Economic Resilience and Social Well-Being dimensions, which will be used to assess the
dependent variable which is the Sustainability of mushroom farming.

METHODOLOGY

Research Design

The study used a single holistic case study approach with the mushroom business venture
as the main areas of focus. The case study approach was selected because it provided an
opportunity to study and describe mushroom growers in their natural settings using qualitative

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techniques (Bloor and Wood, 2006). This approach provided farmer perspectives allowed active
engagement and offered flexibility in pursuing emergent issues (Simons, 2009). A scale for
ranking based on 3 levels of acceptability was used to assign a score for each indicator following
guidelines from SAFA Guidelines because qualitative data has no common or obvious meaningful
unit of measurement (Van Passel and Meul, 2012).
Data Collection and Participants
Buttons up Mushroom Farms Venture Incorporation was selected because it is the leading
and fast-growing mushroom farm in the town. A representative from the Marilao Municipality of
Agriculture was contacted as a key informant because of her understanding of the agricultural
market chain in Bulacan. The key informants were contacted before visiting the farm because this
helped in the early analysis that could help identify gaps in the interviews (Bloor and Wood, 2006).
Contact persons were used to identifying the interviewees. Interviews were recorded with
permission from the interviewees and were carried out at the farm itself and sampling room of
persons interviewed. The SAFA Smallholders App was downloaded and structured interview and
survey were conducted, data collected, SAFA app evaluated results and share these results via
SMS or e-mail.
The SAFA Smallholders App report has been split into three parts and has been adapted to
the limitations of a small mobile device screen: the main outcome aggregates scores into a 21
Themes histogram, rather than the 21 Themes polygon used in the SAFA Tool for desktop use.
Below the histogram, the names of Themes are grouped according to their rating as green, yellow
or red. In the third section, the SAFA Smallholders App report shows performance' outcomes at
different levels of aggregation. A first level reports on rating according to the four sustainability
dimensions. Each dimension' rating can, in turn, be unfolded one-by-one to the level of Themes,
Indicators, and individual indicator Questions in order to identify exact hotspots and hence, inform
on where improvements are required. (Scialabba, 2015)
Secondary data from the company's Facebook Page, Marilao local newspapers, scientific
journals, and books were used for background information on a mushroom farm and agriculture
practices and designing the questionnaires.
Research Instrument
SAFA smallholder app was developed and promoted by FAO and tailored for small
agribusiness based on the SAFA model. This application was a helpful tool that made the
assessment simpler and concise. Hence, the questionnaire in the SAFA tool is a narrowed down
version encompassing all the themes of the four sustainability dimensions based on 100 focused
questions. The questionnaires were divided into four sustainability dimensions: governance,
environment, economy, and society with questions touching on various themes and sub-themes
under each dimension. Through this process, the SAFA Smallholders App was adapted to operate
using a limited number of indicators; 44 indicators. Considering that small-scale producers do not
necessarily have the resources to engage into detailed measurements, SAFA performance scores
were simplified to utilize three main thresholds for sustainability: good (green), limited (yellow)
and unacceptable (red). This simplified rating is more appropriate given the scope of the SAFA
Smallholders App assessment, as small-scale producers need to know where to focus for further
improvement. The assessor can (i) omit some specific sustainability themes that are irrelevant for
their context and (ii) avoid the use of performance-based indicators that measurements are not
accessible, and use instead practice-based indicators (Scialabba, 2015).
Identified as being irrelevant to the operation of smallholder mushroom farming and processing
venture and therefore excluded (Table 1).

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Table 1.
List of sustainability sub-themes excluded from being irrelevant within the assessment
context.
Excluded sub- Under Environment theme:
themes due to  Land. Sub-themes included are soil Quality; and land degradation. The
their irrelevance business venture does not need tilling the ground soil to grow
for the mushrooms instead it's through a process called inoculation,
assessment incubation, and fruiting.
context.  Animal Welfare. No livestock included in the business
Under Social Well-being theme:
 Indigenous Knowledge (which form part of the Cultural Diversity
theme) - no indigenous groups were present in the assessed districts.

IV. RESULTS AND DISCUSSIONS

The Buttons up Venture Incorporation is already in its 4 th year of operation, they have a total
of 700 square meter lot for growing mushrooms and 200 square meter house which they use for
mushroom processing. With 10 employees and 5 of which is a family member. The business is
already certified by the Food and Drug Administration or FAD and products were distributed not
only in Marilao but also to nearby towns and cities.

Table 2
The Farm Characteristics

Farm No of Years of Cultivated How do they grow their mushrooms


Name Labor operation land (m2)
ButtonsUp 10 More than 700 sqm Using fruiting bag
Venture Inc. 3 yrs

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Figure 3. ButtonsUp Mushroom Farms. Logo and Food and Drug Administration Certification

SAFA Small Histogram


Figures 2 to 11 show the sustainability performance histogram produced by the SAFA App
Tool (Ver 2.0.0) for each of the four dimensions. The performance histogram was appointed the
following value: 1 = unacceptable (red); 2 = limited (yellow); 3 = good (green). The gray color
represents the excluded themes. Unanswered Questions that may have dropped out due to skip
rationale, and for which the related trigger questions have not been answered, are included in the
rating as red.
I. GOVERNANCE
Governance is the way toward settling down on and realizing choices (UNESCAP, 2009), be it
in the environmental, economic or social circles. Except if good governance is carefully measured,
sustainability will remain a delusion. For SAFA (2016), this incorporates the parts of corporate
morals, Accountability, Participation, and Rule of law and Holistic Management.
Good Governance
Corporate Ethics
Accountability
Participation
Rule of Law
Holistic…

Figure 4. Sustainability Rating for Good Governance Dimension

Figure 4 demonstrates that mushroom adventure scored green or got a moderately decent
supportability rating as far as great administration measurement, explicitly as far as corporate
morals, responsibility, cooperation and all-encompassing administration with the exception of the
standard of law which scored yellow or it needs enhancement explicitly on the accompanying
perspectives: authenticity, cure, reclamation, and counteractive action; civic obligation and asset
appropriation.

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"To make mushroom cultivating known to the locale and help other people who are
keen on growing mushroom" GS (Farmer/Owner).

In spite of the fact that the mushroom business venture had statements of purpose that
were not composed but rather confirm through activities and expressed aims. The entrepreneur
anyway portrayed their missions as being identified with advancing mushroom farming in the
entire town of Marilao and in the long run for export.

II. ECONOMIC RESILIENCE


To say that an enterprise is economically sustainable, it should be capable of creating
positive cash flow and sufficiently compensating workers and stakeholders. In addition, it should
have buffer mechanisms (savings, assets) to handle changes out of its control, for example,
economic slumps, damaging climate, or disastrous accidents, in essence, it must be economically
resilient (FAO-SAFA-GUIDELINES, 2014). The following themes are covered by the economic
dimension of SAFA: investment; vulnerability; Product safety and Quality and local economy.

Economic Resilience

Investment
Vulnerability
Product Quality and
Information
Local Economy

Figure 5. Sustainability Rating for Economic Resiliency Dimension

C4 Local Economy
Figure 5 indicates that in terms of economic resiliency sustainability performance the
mushroom business venture is good. Specifically, in terms of the local economy theme, its
probably because the business adds to value creation by engaging in mushroom processing (as
shown in figure 6) and not only on mushroom growing and they were able to establish a good and
stable relationship with their buyer and seller.

“Before we only grow and sell raw mushroom, but we decided to also engage in
mushroom processing. As of now, we have nine flavors of mushroom chicharon, we are already
BFAD certified, now we have more than five distributors selling our product to different stores
all over Bulacan and some part of Manila. Sometimes we are shocked that we see our product in
big stores in Makati. Right now, we are in our process of applying for DTI certification and
planning on exporting our mushroom chicharon” GS

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Figure 6. Buttons Up’s Mushroom Chicharon

The mushroom enterprise can support the value creation in the local economy also through
employment opportunities and fiscal contributions. The hired employees of the enterprise come
from the community, municipality where the operations are based create a local workforce as
shown in figure 7. The contribution of the enterprise to the local economy through the employment
of local farmers is a significant component of sustainable development and might benefit the long-
term business viability of the enterprise. In terms of Fiscal commitment, the enterprise is
responsible for its obligation as a tax contributor by paying the local taxes for which it is eligible.
The contribution of the enterprise to the local economy, by paying its correspondent taxes at the
appropriate time, is a significant component of sustainable development (FAO-SAFA-
GUIDELINES, 2014). As for the Local Procurement it is committed to benefiting the local
community through obtaining from local suppliers, like the fruiting bag materials, oyster
mushroom, and other materials. It then contributes to make the economy more dynamic. Supply
chain stakeholders grow and could generate value through employment, investment in the
community and skills development, instead of buying its inputs supplies from overseas, and the
enterprise could establish business relationships with local suppliers and integrating them in the
supply chain. By doing so, the enterprise could have significant benefits also, such as influencing
the quality of the inputs, supporting the productivity and cost-efficiency of its suppliers through
the provision of training, technology or financial resources, and the possibility to have regular and
personal communication for mutual benefit (FAO-SAFA-GUIDELINES, 2014).
Though good in the local economy, the business needs improvement in investment,
vulnerability, product quality, and information themes. It means that they need to give attention
to the following factors: internal investment, community investment, long-ranging investment,
profitability; stability of production, supply, and market; liquidity, risk management; product
safety, quality, and product information.

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Figure 7. ButtonsUp Venture Inc. Family and Staff Photos.


(Photos were taken at http://richardmacalintal.com/buttons-up-mushroom/)
C1 Investment
The term ‘investment’ is perceived from a microeconomic viewpoint that is it is putting
capital goods, human resources or ecosystems, with a view to increasing. Investments at the
enterprise, community and value chain level are considered. Sub-themes included are an internal
investment; Community investment; long ranging investment; and Profitability.
“While the business is owned and managed by the family, it is also funded by
#FinanciallyLiteratePH members, a global Filipino investor’s organization. One of the benefits
that they get from being in the organization is that they get help to achieve their goal in putting up
the mushroom farming and processing, and they were provided the much-needed capital to start.
Aside from selling various mushroom products, they are also active in teaching other people to do
mushroom farming. They have to tie up with the Department of Agriculture (DA) Region 3 and
provide mushroom training on their farm in Bulacan as shown in figure 8." (FB page:
https://www.facebook.com/ButtonsUpMushroom/).

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Figure 8. Photos of ButtonsUp Providing Training to OFWs.


(Photos were taken at http://richardmacalintal.com/buttons-up-mushroom/)
C2. Vulnerability
Another theme relates to the adaptive capability of farmers and natural systems to hazard
and the measures done by the households or individuals to prevent, mitigate or cope with risk.
Sub-themes included are the stability of supply; stability of Market; liquidity; Risk Management;
stability of Production.
C 2.1 Stability of Production
Under this sub-indicator, as part of its risk management strategy, an enterprise has to reduce as
much as possible the negative impact of having production shortages due to economic, social and
environmental shocks, and to ensure that volume and quality of the production are met (SAFA,
2014). There are a number of strategies that can influence the stability of production. In the case
of the ButtonsUp Venture, one of the strategies used is by engaging in mushroom processing by
introducing mushroom chicharron in the town and now creating different flavors.
” Our demand for mushroom increases and our mushrooms here in Marilao farm cannot
supply it That is why we also partner with other small-scale mushroom farmers near
Bulacan area so they can purchase their harvest for their mushroom chicharron
processing.” GS
C 2.2 Stability of Supply
According to FAO-SAFA (2014), guidelines the stability of supply is influenced by the ways
the enterprise gets the supplies (e.g. seed, fertilizers, food ingredients, packaging) required to
produce the product(s) to be sold in the market or to offer the core enterprise’s service(s) to clients.
In the case of the participant enterprise, they are ensuring that their product and services are
delivered on time, reducing the enterprise's vulnerability and risk exposure to suppliers that might
affect reaching the expected production levels or delivering the type and quality of service offered.
They were able to maintain a mutually beneficial business relationship with the supplier for long
periods of time which contribute to the overall stability.
C 2.3 Stability of market
Marketing channels of the venture are ensured thru a stable transfer and sale of the products
and goods to the next stage of the food chain and to the final consumer. Key tasks include: making
contact with potential buyers, negotiating price and conditions, contracting, transferring the

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products and goods. This is to guarantee that the products are sold at an appropriate time, and the
enterprise earns revenue. Ensuring that the products and goods are sold at the appropriate time is
a major business target.
"Most of their orders are thru their facebook page alone. They have shipped their
products all over the Philippines and the demand is more than they can cope up. They have
resellers in few provinces and soon they will branch out."
(FB page: https://www.facebook.com/ButtonsUpMushroom/).

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Figure 9. ButtonsUp Mushrooms for chicharon processing (above) and Farm (bottom).
(Photos were taken at http://richardmacalintal.com/buttons-up-mushroom/)

III. SOCIAL WELL-BEING

Social Wellbeing
Decent Livelihood
Fair Trading Practices
Labour Rights
Equity
Human Health and…
Cultural Diversity

Figure 10. Sustainability Rating for Social Well-Being Dimension

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In terms of the social well-being dimension, it got a good sustainability rating on the theme
fair trading practices, labor rights, human health and safety, and cultural diversity. But needs to
improve on sustainability performance on decent livelihood and equity. The enterprise practice
Fair Trading Practices in both legal and human rights by having access to markets where fair
prices are negotiated, stable, based on true costs, agreements are long-term and where contracts,
whether written or verbal, including a process for settling disputes free from retaliation in a
mutually agreed manner. Labor Rights were exercise also between workers and their employers,
usually obtained under labor and employment law. In terms of Human Health and safety, the
promotion and maintenance of the physical, mental and social well-being of workers is also
practiced according to the owner.

IV. ENVIRONMENTAL INTEGRITY

Environmental Integrity
Atmosphere
Water
Land
Biodiversity
Materials and Energy
Animal Welfare

Figure 11. Sustainability Rating for Environmental Integrity Dimension

The figure presents the sustainability rating for environmental integrity dimension of the
mushroom farm, relatively all themes scored yellow which means needs improvement, they are
atmosphere, biodiversity and materials, and energy. (Atmosphere - referring to clean environment
and greenhouse gas - GHG emissions, biodiversity - care of the ecosystem in general including
climate change, and materials and energy - eco-efficiency measures the rate at which the
environment is negatively “used” or affected). In the case of the farm, though it has no bad
agricultural practices that will tend to emit carbon dioxide which may harm the atmosphere, it still
needs to grow more trees in the surrounding to mitigate GHG, scored gray or not applicable in
animal welfare because the farm does not need any animal to grow mushroom nor it harm any
wildlife animals. But it scored green or good sustainability performance in terms of water by
conserving water and by not using synthetic pesticide to avoid water pollution on the farm and
scored red or unacceptable inland theme, obviously the farm got an unacceptable sustainability
performance in land sub-theme because mushroom growing does not use ground soil in its
production, instead it uses what they call fruiting bag which just hangs on the farmhouses. It does
not degrade the soil instead of the mixture of the used fruiting bags was used as fertilizer for their
backyard vegetable crops.
“We do not need to till the land to grow mushrooms, what we use are “kusot” or sawdust
or woodchips and put it in fruiting bag together with other materials, because oyster mushrooms
grow best on wood substrate.” GS

CONCLUSION

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In general, the SAFA tool yielded important data which was guided by three research
problem; the first one focused on examining the main challenges and concerns in mushroom
growing and processing of the small holder mushroom farmer; the second focused on exploring
how SAFA can be adjusted to make it useful in the context of smallholder mushroom farmer in
Bulacan towards greater sustainability; and finally, recommendations on how to apply SAFA to
other contexts.
From the results, the study concluded that of the twenty-one (21) sustainability themes, the
mushroom business venture has a good performance on ten (10) themes: corporate ethics,
accountability, participation, holistic management, water, local economy, fair trading practices,
human health and safety labor rights and cultural diversity. This can be illustrated, for example
under the good governance and social well-being score of the mushroom farm. While it could
improve on the nine (9) themes which got a moderate performance, these are rule of law,
atmosphere, biodiversity, materials and energy, investment, vulnerability, product quality and
information, decent livelihood and equity. As shown in the yellow scores of economic resilience
and environmental integrity theme. In this section of the SAFA assessment, important economic
issues are discussed. These issues range from the analysis of the investment, product and supply
stability and quality to environmental integrity such as GHG practices and planting of trees
around the farms among other key indicators. And the theme-hotspots was only one (1) which is
land, but not that much of a concern since the mushroom growing does not need tilling of the soil.
In general, the SAFA tool was found to be very useful in comparing results and identifying hot
spot areas in the context of the mushroom venture and the tool can be adjusted to make more
useful towards greater sustainability. The variances identified in the discussion section would
require further research to determine for example, whether SAFA is better suited for comparing
the performance of individual farms over time.

Recommendations and Implications:

The study came up with several recommendations in regard to the sustainability assessment
of the mushroom farm. The answers to the research problem also have implications to the efforts
of trying out to develop sustainability assessment measures that can be used as a common
approach towards greater agricultural sustainability, through which comparable results of these
sustainability assessments in agriculture could be beneficial and significant to smallholder
farmers and other relevant stakeholders.
1. The first recommendation to future researchers is to use a sustainability assessment tool
on other agricultural activities in order to validate its use as an assessment tool. This test
for reliability and validity would be essential in justifying the findings of SAFA as an
instrument.
2. The researcher realized that it is needed to assess more respondents and to cover a larger
geographical area in order to get more overview and a new perspective of agricultural
farmers regarding sustainable practices. Further research is important to validate the
findings of the study, such as individual interviews to get an insight into the perception of
business students or agricultural students about the sustainability concept. Moreover, more
research is also needed on how to increase the farmers' participation and implementation
of improved sustainable practices in order to support the food and agricultural greater
sustainability.

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3. The framework can possibly encourage the farmers to study and progress their farm
management. Moreover, it can benefit the farmers to become mindful of the global
sustainability issues and of other issues essential of future risk management. The
participant enterprise venture would have better-diversified management, related to, for
example, the use of a more diversified mushroom production (grow other variety of
mushrooms aside from oyster mushrooms) and grow other vegetable crop for selling in
the market, since the owner already mentioned that they are putting their waste or used
fruiting bag to the other side of their land to serve as fertilizer to the vegetable crops planted
beside the mushroom farmhouse. The farmers were also aware of the importance of the
environment for the sustainability of their farm and the society.
4. The assessment results serve as an important tool and at the same time has a significant
implication for internal improvements for the local government, in which themes of
sustainability need to be improved in the future. It can be helpful to government institutions
and other sector’s sustainability in knowing the concerns about the farmer’s needs,
especially smallholder farmers with little resources to improve their sustainability
performance. It is therefore important for the government to focus on sustainable
development within their policies as well as on finding alternative approaches for
empowering the farmers and the industry to create a sustainable technological and social
advancement.
5. Through the use of sustainability assessment tools, stakeholders such as local government
policymakers and school administrators who were engaged in activities like policy-making
and farming training can increase their sustainability knowledge and awareness, and hence
increasing their engagement in sustainable practices. The proper managing of the farms,
the education of the people working on the farm and the agreements with the farm workers
may be explained by better information.
6. In this country, the Philippines, sustainability assessments were not systematically
conducted on smallholder farms and were not part of a legal requirement. A context-
generic assessment framework like SAFA can be the first step to involve farmers, decision-
makers and policymakers in deciding which issues can be relevant in their context and
which actions can be taken or not, in order to make agriculture

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JGB 1201
STRUCTURAL PERFORMANCE OF FISH MARKETING
IN RURAL MUNICIPALITIES OF OCCIDENTAL
MINDORO, PHILIPPINES
Ryan Mark A. Ambong1 & Liberty R. Mendaña2
1
Science Research Specialist I, Research, Development and Extension Unit
2
Assistant Professor III, College of Business, Administration and Management
Occidental Mindoro State College
San Jose, Occidental Mindoro, Philippines, 5100
ryanmark.ambong2017@gmail.com

ABSTRACT
This study analyzed the structural performance of fish marketing in the rural municipalities
of Rizal and Calintaan, Occidental Mindoro. The study adopts the market structure, conduct and
performance (SCP) framework in analyzing the fish market. Survey interviews were conducted
involving 33 purposively-selected fish traders (eight wholesalers and 25 retailers or panting) based
on the listing of the Municipal Agriculture Office (MAO). Moreover, interview guide was used to
explore information about the opportunities and constraints in fish marketing from the key
informants such as agricultural technician, market leaders and some fishermen. Results show that
the structure of fish market is highly concentrated, and the presence of monopoly is evident
especially among the small number of wholesalers in the market. Moreover, there is greater degree
of inequality among traders manifested by high deviations on the value of monthly sales revealed
by concentration ratio (CR) and Gini coefficient. The high concentration level significantly
contributes to the inefficiency of the market structure of fish. This further supports that the fish
market is monopolistic and is controlled by a few large traders. In general, traders adopt the same
exchange functions, but the market performance is generally inefficient. However, there are few
large wholesalers who attain market efficiency by incurring lower marketing costs compared to
other wholesalers and retailers.

Keywords: Fish traders, Fish marketing, Marketing efficiency, SCP framework, Market structure

Introduction
The network of retailers, distributors, transporters, storage facilities and suppliers that
partake in the process of production, delivery and selling of a product or commodity to consumers
is called a supply chain. Generally, supply chain for fish species starts from oceans and culminates
to long distance consumer markets (Harland, 1996 cited by De Silva, 2011). Moreover, an effective
marketing system will make the fish available to consumers at the right time and right place
according to Lawal & Idega (2004) cited by (Agebebi & Fagbote, 2012). Fish marketing is
important in ensuring that the fish and fish product flow from fishermen to consumers will be
convenient in terms of form, time and place (Agbebi & Fagbote, 2012).

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Traceability is a concept that relates all types of products and supply chains. It is a tool
used in obtaining market consensus especially in the present times where economic systems are
established to meet customer satisfaction. Furthermore, traceability chain of fish and fish products
may be short or long depending on the process of production (Nicolae, Moga, Nenciu, Bahaciu, &
Marin, 2015).
Most of the East Asian maritime nations are known to have a well-established tradition of
seafood in their cuisine. During the late 1970s and 1980s, there was a significant market expansion
for high quality sea foods. It was accompanied by the development of East Asian economies
manifested by the increase in disposable income to afford luxury goods (Gaiger, 2014). Hence,
fish marketing evolves along with economic development (Agebebi & Fagbote, 2012).
The Philippines is a major fishing nation having a large small-scale fisheries sector. It is
the world’s second largest archipelagic state which ranked among the major fish producer in the
world in the year 2012 (UN-FAO, 2014).
Majority of the fish caught from the municipal fisheries subsector are mostly marketed in
retail quiantities and are direct to traditional landing sites. However, there are middlemen who buy
fish directly from the fishers. Vendors of fish are mostly women who are selling house-to-house
in small quantities in the village or nearby communities. Furthermore, some of these fish catch are
sold in local wet market or processed into dried, smoked or fermented fish (UN-FAO, 2014).
Fishing is the second source of livelihood of people next to farming in Rizal and Calintaan,
Occidental Mindoro. Fishing sector is significant and promising since the demand for fish
continues to rise as human population increase. Although street fish vendors exist in some
barangays, it is observed that many buyers and consumers still go to the nearby municipality to
buy fish for household consumption.
Fish species like Matangbaka, Tulingan, Tambakol, Dorado, Galunggong, Tamban, Aloy
and Lapu-lapu, are the major fish catch in Rizal and Calintaan of which some are sold by street
vendors (MAO-Rizal). This observation opens an opportunity to study the fish markets in two
municipalities as well as to provide baseline information about the market structure, conduct and
performance of actors involved in the marketing of fish. Furthermore, aside from the fact that there
is lack of literature on fish marketing, this study wants to prove if the assertion that indigenous
marketing systems in developing countries is exploitative, collusive and economically inefficient
(Ajala & Adesehinwa, 2008) is true on fish marketing in Rizal and Calintaan. Moreover, this
research was conducted with the following objectives: 1) Determine the structure and conduct of
fish market, 2) Determine the performance of fish marketing, 3) Identify the constraints and
opportunities associated in fish marketing and, 4) Suggest recommendations for policy
formulation.

Theoretical Framework
This study adopts the framework of market structure, conduct and performance (SCP) (see
Fig. 1) developed by Harvard school of thought which attempts to analyze markets. The paradigm
originated from the empirical study of Bain in 1951. Although bulk of agricultural marketing
studies are anchored to the theoretical framework of “perfect competition” (Ajala & Adesehinwa,
2008), SCP paradigm asserts that the extent of market conduct declines as the market becomes
perfectly competitive. Consequently, output or supply level as well as marketing efficiency
declines while price increases. This suggest that market performance can be assessed based on
market efficiency and degree of competition.

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Structure Conduct Performance

Fig. 1. Structure, Conduct and Performance (SCP) Framework.

Methodology
This study was conducted from October 2017 to February 2018 in fishing villages of the
neighboring municipalities of the Rizal and Calintaan, Occidental Mindoro. Survey interviews
were done involving 33 purposively-selected fish traders (eight wholesalers and 25 retailers or
panting) based on the listing of the Municipal Agriculture Office (MAO). Moreover, interview
guide was used to explore information about the opportunities and constraints in fish marketing
from the key informants such as agricultural technician, market leaders and some fishermen.
Below are the analytical techniques used to measure the variables of the study.
1. The concept of concentration ratio (CR) was used to determine the structure of fish
market given by the formula: Concentration Ratio (CR) = (Sales volume of the top four
largest traders/Total sales volume) x 100. If the result is less than 33%, the market is
said to be not concentrated or perfectly competitive. If it is between 33% and 50%,
there is strong oligopoly. If it is greater than 50%, it is monopoly. To determine the
level of buyer and seller concentration, Gini Coefficient was computed that ranges
between 0 to 1. A coefficient of 0 implies perfect distribution equality while 1 implies
perfect distribution equality (Ajala & Adesehinwa, 2008).
2. Exchange functions (procurement and distribution practices) and product
differentiation are the parameters used to assess the conduct of fish market. These are
the patterns of behavior adopted by the traders which is highly influenced by the market
structure.
3. Marketing efficiency was used as the basis for assessing market performance.
Marketing efficiency refers to the ratio of marketing cost to marketing margin such that
ME = Marketing margin/ Marketing cost wherein ME =1 means efficient, ME > 1 is
highly efficient and ME < 1 is not efficient.
Discussions of Results
Structure of fish market in Rizal and Calintaan, Occidental Mindoro
Table 1a below shows the distribution of fish wholesalers by value of their monthly sales.
Results reveal that majority or 75% of the wholesalers have monthly sales of not less than 3000
pesos but not more than 19,250 pesos. In order to determine the market structure of fish based on
the distribution of wholesalers, concentration ratio (CR) was used since there is significantly high
deviations in terms of monthly value of sales by 12.5% of the wholesalers from the majority or
87.5% of the wholesalers. Concentration ratio was determined by the formula CR = (Sales volume
of the top four largest wholesaler/Total sales volume) x 100. According to Ajala and Adesehinwa

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(2008), if CR is less than 33%, the market is said to be not concentrated or perfectly competitive.
If it is between 33% and 50%, there is strong oligopoly. If it is greater than 50%, it is monopoly.
In this study, the structure of fish market is highly concentrated given by the concentration ratio
of 80.63%. Monopoly market is confirmed by one large wholesaler prevailing in the market.
Table1a. Distribution of Fish Wholesalers by Value of Monthly Sales.
Sales Number of % of Total % of Sales volume Con. Interpretation
range wholesalers wholesalers value of total of largest Ratio
(Peso) monthly sales four
sales wholesalers
3,000- 6 75 60,200 36.44
19,250 Highly
Above 133,200 80.63% concentrated
19,251 2 25 10,500 63.56
Monopoly
Total 8 100 165,200 100

On the next table (Table 1b) reveals the distribution of fish retailers. Unlike the
wholesalers, the number of retailers is larger. Further, most of them have monthly sales not more
than 6,500.03 pesos and the retailers operating in this scale contributes the highest proportion of
consolidated sales. In determining the market structure where retailers operate, Gini coefficient
was used given by G.C = 1- ∑xy where x is the percentage distribution of retailers and y is the
cumulative percentage of all retailers’ sale (Ajala & Adesehinwa, 2008). Same as the case of
wholesalers, the market structure of fish retailers is said to be highly concentrated or monopolistic
given by the Gini coefficient = 0.91. There is also great incidence of inequality as presented on
Table 1b where only few retailers have revenue of more than 10,000 pesos monthly. This finding
is supported by the general notion that monopolists are exploitative in terms of pricing and could
generate abnormal or supernormal profits (Agarwal, 2017). The concentration in total value of
revenue is a prerequisite to concentration in market power, especially the establishment of
marketing channels and creation of price (Lem, Tietze, Ruckes, & van Anrooy, 2004). Moreover,
fish marketing systems across countries vary in terms of market structure as revealed on the study
by Abila (1995) that wholesale market of fish is competitive while the retail market is oligopolistic.
However, the same study suggests that there is inequality of shares distribution among traders.
This as well confirms with Oparinde and Ojo (2014) who found out that there is inequality in the
distribution of market share in Nigerian artisanal fish market.

Table 1b. Distribution of Fish Retailers by Value of Monthly Sales.


Sales range Number of % of Cum. Total value of % of Cum. ∑xy/10000
(Peso) retailers retailers % (x) monthly sales total % (y)
sales
2,000- 3 12.00 12 6,000 4.20 4.2 0.00162
2,166.67
2,166.68- 6 24.00 36 19,000 13.29 17.49 0.005349
4,333.35
4,333.36- 9 36.00 72 50,000 34.97 52.46 0.012446
6,500.03
6,500.04- 2 8.00 80 14,000 9.79 62.25 0.014225
8,666.71
8,666.72- 3 12.00 92 27,000 18.88 81.13 0.017313
10,833.39

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10,833.40- 1 4.00 96 12,000 8.39 89.52 0.018552
13,000.07
13,000.08- 1 4.00 100 15,000 10.49 100 0.02
15,166.75
TOTAL 25 100 143,000 100 0.089505
Gini Coefficient = 1-0.089505 = 0.910495 (Highly concentrated/Monopoly)

Conduct of fish market in Rizal and Calintaan, Occidental Mindoro


Presented on table 2 below are the buying and selling practices of fish traders. In terms of
procurement, the mode of buying by 80% of retailers is thru pick-up basis, 8% in delivery basis
and the other 12% practice both mode of buying. According to the retailers, the most favorable
mode of buying is thru pick-up basis to ensure that they will get high volume of fish from the
fishermen. They noted that procurement process is on first come, first serve basis and large volume
are usually given to the first comers. In terms of payment for the procured fish, 8% of the retailers
said that they are paying the fish on cash basis while the majority or 92% is on cash and
consignment basis.
For the distribution of fish from retailers/panting to the consumer, the mode of buying for
80% of the retailers is thru delivery. Moreover, buyer-consumers buy fish from 8% of the retailers
thru pick-up basis and other 12% are using both transactions. In terms of payment, 92% of their
customers or regular buyers pay either in cash or consignment basis because there are times when
buyer-consumers have no money to cash pay in cash that is why retailer offers consignment
arrangement to avoid losses when fish were unsold fish. The payment as agreed by the two parties
should be done in 1 to 2 days.

Table 2. Procurement and distribution practices of fish traders.


Functions Frequency Percentage Frequency Percentage

Retailer (n=25) Wholesaler (n=8)


Procurement
Mode of Buying
Pick-up 20 80 0 0
Delivery 2 8 0 0
Both 3 12 8 100
Terms of payment
Cash 2 8 0 0
Consignment 0 0 0 0
Both 23 92 8 100
Distribution
Mode of Selling
Pick-up 2 8 0 0
Delivery 20 80 0 0
Both 3 12 8 100
Terms of payment
Cash 2 8 0 0
Consignment 0 0 0 0
Both 23 92 8 100

On the other hand, the mode of buying by 100% of the wholesalers is both pick-up and
delivery basis while the terms of payment is both cash and consignment basis. For distribution, the

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mode of selling to customers is both delivery and pick-up basis also paid thru cash and
consignment.
Fig. 2 illustrates the marketing channel of fish in Rizal and Calintaan. The identified
channels were as follows: 1) Fishermen sell directly to the consumer, retailer/panting and
wholesaler. 2) Fishermen sell to the retailer and the retailer sells to the end consumers. 3)
Fishermen sell to the wholesalers then the wholesaler sells to the retailer and the retailer caters the
end consumers. The link of the marketing channel shows that all actors sell directly to the end
consumers. It shows that 40% of fish from fishermen are sold to the retailers who get the highest
supply of fish. Meanwhile, 30% of the total supply goes to the wholesalers. About one third of the
30% of fish sold to the wholesalers are of high quality. Moreover, fishermen sell the other 20% of
their catch directly to consumers and the 10% are set aside for household consumption.
According to the fishermen they would gain higher profit for selling exclusively to end
consumers, but they have limited time that is why they let the retailers and wholesalers to pick-up
their fish for distribution. Also, they prefer retailers and wholesalers to pick-up the fish to minimize
additional cost for packaging materials and transportation. In this study, it can be inferred that
fishermen have no control with regards to marketing. They have no choice but to turnover their
fish to traders because of time constraints and the anticipated marketing costs. This corroborates
with Uddin, Sirazunnesa, Haq, and Ahmed (2018) who mentioned that fishermen do not
communicate directly to end consumers such that fish passes through several intermediaries before
reaching the end consumer. In this marketing set up, the highest marketing margins are attained
by the intermediaries (Aswathy, Narayanakumar, & Harshan, 2014).
Retailers are considered as market for both fishermen and wholesalers because they both
are selling to them. The retailers can sell 80% of the fish they bought from wholesalers and
fishermen to the end consumers. Most consumers prefer to buy to the retailers who are roaming
around the town for convenience and lesser cost. The retailers maintain the other 20% of the fish
they bought for consumption.
On the other hand, wholesalers trace the longest marketing channel than retailers because
they create two channels by transferring 60% to the retailers, selling the 30% directly to consumers
and retain the 10% for food.

Fig. 2. Marketing Channel of Fish in Rizal and Calintaan, Occidental Mindoro.

Performance of fish marketing in Rizal and Calintaan, Occidental Mindoro

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Table 3a below summarizes the marketing costs incurred by fish traders. Results reveal
that wholesalers have following costs: transportation cost from source, municipal tax, material
cost, operating cost and procurement. It shows that the transportation cost of retailers which is
29.54 pesos is higher compared to the cost of wholesaler which is 4.24 pesos. This is because the
retailer’s pick-up the fish from source of which they incur expenses for gasoline and vehicle.
Compared to wholesalers, the retailers roam around the town and nearby areas to sell fish to
households. In this case, transportation costs and other marketing expenses are high.

Table 3a. Marketing Costs of Fish Traders.


Total
Marketing Costs Marketing
Costs
Transportation Municipal Material Other Other
costs tax Cost operating procurement
costs costs
Wholesaler 4.24 1.05 - - 0.78 6.07
Retailer 29.54 0.21 7.66 37.41

Meanwhile, wholesalers have municipal tax of 1.05 pesos per kilo compared to the retailers
whose municipal tax is almost negligible with respect to their sales. However, only 44% of the
retailers declare that they pay for municipal tax. For material costs and other operating costs, 0.21
pesos is incurred by retailers. The wholesalers do not incur these costs because they do not have
much provision for packaging and other materials needed for selling fish. Furthermore, retailers
and wholesalers incur a procurement cost of 7.66 and 0.78 pesos, respectively. The total marketing
cost of wholesalers is 6.07 and the retailers have total cost of 37.74. It shows that the marketing
cost of the retailers is higher than that of the wholesalers.
On the next table (Table 3b); comparison of price given by the traders is presented. In
shows that buying price of wholesaler is 103.25 pesos from source and while for the retailers is
102.54 pesos. A wholesaler gets the higher buying price because fishermen deliver their fish to
them. The fishermen need to compensate their cost that is why they demand for a higher price for
selling their fish. In the contrary, wholesalers have lessened their transportation costs. Moreover,
the buying price of retailers is low because the retailer pick-up the fish from source in which they
avail a favorable farm gate price. The retailers also have their own vehicle for transportation from
the source and for selling to the end consumers.
In terms of selling price, retailers’ price is higher than that of the wholesalers. The selling
price of retailer is 129.1 pesos per kilo while 126.56 pesos for the wholesaler. Retailers charge a
higher selling price because they deliver their fish directly to households to compensate their costs.
Table 3b. Marketing Margins and Efficiencies of Fish Traders.
Total Buying Price Selling Margin Efficiency
Marketing Price
Costs
Wholesaler 6.07 103.25 126.56 23.31 3.84**
Retailer 37.41 102.54 129.1 26.56 0.71*
**Highly efficient; *Inefficient

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In case of the most efficient actors in marketing system of fish, wholesalers are highly
efficient while retailers are not efficient. The efficiency of the wholesalers can be attributed to the
marketing cost they incur which is only 16% of the marketing costs incurred by the retailers. In
the contrary, retailers have higher margin as compared to the retailers. But because the bulk of
their marketing costs come from transportation and packaging materials, their efficiency decreases.
However, inefficiency does not mean that retailers are not profitable because they still have a
positive margin. Wholesalers attain economies of scale since they are in big scale operation which
in turn lowers their cost per unit (Agarwal, 2017).

Constraints and opportunities associated in fish marketing


Table 4 below summarizes the constraints and opportunities associated in fish marketing.
Just like other agricultural commodities, fish marketing is highly constrained by the condition of
the transportation system in the Rizal and Calintaan. Aside from high transportation costs due to
limited public transport and trip schedules, most of the major roads are on the process of
rehabilitation that usually hampers transportation of fish going to the demand areas. Fish is highly
perishable that is why transportation is very critical. However, construction and rehabilitation of
farm to market roads open an opportunity for a more efficient marketing in the future. Although
fishing is the next source of livelihood after farming, extension services and access to financing
are very limited. In fact, there are no specific programs for fishermen and fish traders. The
identified constraints support the findings of Abah, Zaknayiba, and Simon (2013) and Oparinde
and Ojo (2014) stating that the major problems faced in fish marketing are lack of financing,
transportation and storage facilities. Moreover, problems with regards to marketing facilities are
often faced by the retailers (Abah, Zaknayiba, & Simon, 2013; Upadhyay, Anil & , Jagpal & Deb
Roy, Piyashi, 2016; Ekine & Binaebi, 2018).

Table 4. Constraints and Opportunities Associated in Fish Marketing.


Type Opportunity Constraints

Transportation Construction and rehabilitation of farm to High transportation cost.


market roads. Limited public transport and trip
schedules.
Development of regional and local roads Poor road infrastructure.
and extension of agriculture roads.
Marketing facilities Development of assembly and market No market center for the
center for fish products. collection of fish.

Constant demand for fish due to growing Damping and decay of fish due to
population poor storage facility.
Postharvest Development of fish processing center Poor postharvest techniques
Financing and Existence of BFAR, DA and DOST Low access to extension services.
extension services

Presence of credit facilities Low access to credit

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From the given constraints, the cost of transportation can be given an immediate remedy
since the provincial government is currently rehabilitating its major market roads. Access to
financing and other services can also be provided by the extension professionals from the LGU,
academe and the private sector.

Conclusions
Based on the findings of the study, the following conclusions were drawn:
1. The structure of fish market is highly concentrated, and the presence of monopoly is
evident especially among the small number of wholesalers in the market. Moreover, there
is greater degree of inequality among traders manifested by high deviations on the value of
monthly sales revealed by concentration ratio (CR) and Gini coefficient. Wholesalers and
retailers have the same market conduct and perform the same exchange functions
(procurement and distribution practices).
2. Market performance is generally inefficient; however, there are few large wholesalers
which attain market efficiency by incurring lower marketing costs compared to other
wholesalers and retailers.
3. The major constraining factors on fish marketing are associated with transportation,
marketing and postharvest facilities and access to financing and extension services.
4. The marketing system of fish in Rizal and Calintaan is unequal and economically
inefficient.

Limitations and Recommendations for Future Research

Based on the conclusions drawn, this study recommends the following:

1. Provide extension services to fish traders which will address their problems on marketing
and postharvest practices.
2. Provide financial literacy and access to financing to open investment opportunities to fish
traders.
3. Improve the local market facilities to better cater the requirements of fish traders for a more
efficient and cost-effective marketing activities.

References

Abila, R. O. (1995). Structure, Conduct and Performance of Kisumu Fish Marketing System.
Agricultural Economics Department, University of Nairobi.

Abah, D., Zaknayiba, D., & Simon, E. (2013). Economic Analysis of Fish Marketing in Lafia
Local Government Area of Nasarawa State, Nigeria. Production Agriculture and
Technology, IX(2), 56-62.
Agarwal, P. (2017, December 3). Monopoly Market Structure. Retrieved July 11, 2018, from
Intelligent Economist: https://www.intelligenteconomist.com/monopoly-market-structure/
Agebebi, F. O., & Fagbote, A, F. T. (2012). The role of middlemen in fish marketing in Igbokoda
fish market, Ondo-state, south western Nigeria. International Journal of Development and
Sustainability, III(1), 880-888.

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Ajala, M., & Adesehinwa, A. (2008). Analysis of Pig Marketing in Zango Kataf Local Government
Area of Kaduna State, Nigeria. Tropicultura, IV(26), 229-239.
Aswathy, N., Narayanakumar, R., & Harshan, N. (2014). Marketing costs, margins and efficiency
of domestic marine fish marketing. Indian J. Fish, 97-102.
Ekine, D. I., & Binaebi, E. (2018). Structure and Performance of Fresh Fish Marketing in Yenagoa,
Local Government Area of Bayelsa State, Nigeria. IOSR Journal of Agriculture and
Veterinary Science, 63-68.
De Silva, D. (2011). Value chain of fish and fishery products: origin, functions and application in
developed and developing country markets. Food and Agriculture Organization of the
United Nations
Food and Agriculture Organization of the United Nations (UN_FAO).. (May,2014). Fishery and
Aquaculture Country Profiles: The Republic of the Philippines. Retrieved August 14, 2017,
from FAO Home > Fisheries and Aquaculture Department:
www.fao.org/fishery/facp/PHL/en
Food and Agriculture Organization. (2016, January 13). FAO Corporate Ducument
Respository. Agricultural and Food Marketing,pp. 1-28.
Gaiger, P.J.(2014). Market Potential for Indonesian Seafarmed Products: Corporate Document
Repository. Food and Agriculture Organization (FAO) of the United Nations, Rome.
Lem, A., Tietze, U., Ruckes, E., & van Anrooy, R. (2004). Fish Marketing and Credit in Vietnam.
FAO Fisheries Technical Paper.
Nicolae, C. G., Moga, L. M., Nenciu, M. I., Bahaciu, G. V., & Marin, M. P. (2015). Particularities
and Management of the Distribution Chain for Fish and Fishery Products. Agrolife
Scientific Journal, IV(1), 111-116.
Oparinde, L. O., & Ojo, S. O. (2014). Structural Performance of Artisanal Fish Marketing in Ondo
State, Nigeria. American Journal of Rural Development. II (1), 1-7.
Uddin, M. H., Sirazunnesa, Haq, M. S., & Ahmed, Z. F. (2018). Structural Performance of Fish
Market in Bogura District, Bangladesh. Research in Agriculture, Livestock and Fisheries,
399-410.
Upadhyay, Anil & , Jagpal & Deb Roy, Piyashi. (2016). Structural performance of fish market and
socio-economic status of market functionaries of Naveen Machhali Mandi Mahanva of
Gorakhpur, Uttar Pradesh. Economic Affairs. 61. 511. 10.5958/0976-4666.2016.00064.4.

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JGB 1229
SUSTAINABLE BUSINESS MANAGEMENT: A STUDY ON
EMPLOYEE RETENTION STRATEGIES
Khadija Cajayon
De La Salle University, Manila
khadija_cajayon@dlsu.edu.ph

Leo B. Malagar
De La Salle University, Manila
leo.malagar@dlsu.edu.ph

ABSTRACT
The purpose of this research is to deep dive into the main reason why key employees leave their
employers. Those who perform are the ones who always leave the company. The first phase of
the research is done by having the participants answer a survey, This survey includes some
question on the kind of industry they are working, working hours, responsibilities, travel time,
salary, engagement, how likely are they to recommend their current company to their friends or
family members.
The response on these questionnaires was thoroughly studied and grouped accordingly. Some
respondents were further interviewed to gather the information that will provide the main reason
why although some do not have anything bad to say about a company still prefers to leave. The
second phase is to look into studies that cover the same topic, the researcher gathered local and
foreign literature that was used to form the structure of this research.
The researcher has dwelled on this question for more than 8 years and still can’t find a concrete
reason why. The main goal is to understand what made these people leave and what could have
been done to prevent them from leaving, part of the question that the researcher wants to be
answered is who was supposed to anticipate that people will leave, are there warning signs, what
is the best approach or steps to take in order to have prevented this.
Tenured employees can help the company gain more business and retain the existing ones since
they have already learned and honed the skills needed to perform the job well. These employees
can be an effective trainer or coach since they experienced the process first hand, they can show
the newcomers how things are done and the best way to perform the job in the shortest possible
time. Keeping the tenured employees will generate profit from the company since they would not
need to allocate more funds in recruiting new employees and training them for the vacant post due
to attrition, when this happens the company would not need 6 months or more time in order to
train the new employees to a certain level that would be beneficial for them.

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The risk that their best practices, the name of their clients and company SOP will be leaked to
their competitors will lessen. On the other hand, this will not only increase the company’s
productivity, but this may also contribute to a good quality that may result in a favorable
impression from the clients.
The researcher learned that most employees are leaving not because of the company but because
of their boss, some of the reasons are that supervisor fails to secure the welfare of the employee,
Concerns are not being addressed properly, the job becomes routinely and the employees are no
longer engaged with the company.The results in this research may be used in creating a solid plan
on how to sustain talents in a company that will foster growth, development and strengthen
operations.

Keywords: Employees, Leave, Reason, Retention

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JGB 1275
THE CONNECTS AND DISCONNECTS
OF REGULATORY AGENCIES’ IMPLEMENTATION OF
ELECTRONIC COMPLIANCE SYSTEM: A CASE STUDY

Atty. HILARIO S. CARAAN, DPA, MNSA


Faculty, DLSU Commercial Law, RVR College of Business
hilario.caraan@dlsu.edu.ph

ABSTRACT

With the dawning of the 21st century, technology has been in a constant state of evolution
with inventors and creators always trying to make people’s lives better. The invention of
smartphones and portable gadgets allowed everyone to do almost everything and anything at the
click of a button from the comfort of any place they choose. The Philippine government, in
recognizing these modern changes and the convenience that it brought to everyone, tried to ease
its citizens’ burden by formulating and implementing laws and policies in order to involve
technology in government dealings and transactions.
The E-Commerce Act of the Philippines was enacted in the year 2000 which, as it
acknowledges the value of electronic documents in business transactions, it recognizes their
existence as if they were paper-based original documents in order to reduce the gargantuan amount
of papers being used each time. More than a decade after, various government agencies did their
part to speed up government processes via technology, from tax return forms and government
remittances to many other applications for government clearances, permits, and licenses. The shift
from manual to electronic applications, submissions, filing, and compliance transpired as a result.
Even evidence presented in courts no longer need to be paper-based as long as there is a faithful
reproduction thereof in electronic form. Court procedural rules had eased the burden of submitting
their pleadings and evidence via email or compact discs.
This research examines the connects and disconnects between the spirit of the E-Commerce
Act and its related implementing laws and regulations vis-à-vis their actual implementation by
regulatory agencies of business transactions.

Keywords: Government electronic compliance system; electronic documents; electronic filing;


paper-based documents

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INTRODUCTION

Information technology has become a key element in the success of e-commerce in


bringing new developments and innovations in the way of doing business in emerging economies
(Neely, 2014: 92; Khan, 2016). The advancement of information and communication technology
has certainly added value to customers’ satisfaction in terms of convenience and enables
businesses to gain more competitive advantage (Khan, 2016). With the dawning of the 21st century,
technology has been in a constant state of evolution with inventors and creators always trying to
make people’s lives better. The invention of smartphones and portable gadgets allowed everyone
to do almost everything and anything at the click of a button from the comfort of any place they
choose.
Ohidujjaman, et. al. (2013) shares that information technology and e-commerce, having
been intertwined in developed countries, created a revolutionary phase in business practices, which
improved networks and processes (Laudon and Laudon, 2013) and if continuously improved and
efficiently implemented, can result to ease in doing business in a locality (Ray, 2011).
Indeed, an “e-commerce revolution” has transpired, akin to the industrial revolution when
the world has entered the information age (Shahriari, et. al., 2015: 49). As Shahriari, et. al. (2015)
have described it: “(L)large changes in the economic, social and cultural aspects (have occurred).
One aspect of this transformation changes in economic relations between individuals,
corporations, and governments. Commercial exchange between people who had been based on
paper documents to transactions by us (sic) the systems based on electronic information."
Shahjee (2016) emphasizes that while e-commerce on business remains to be a relatively
new concept, it has the potential to alter traditional forms of economic activities which could bring
renaissance not only in private businesses' functions but also in creating a regulatory impact on
business organizations.
On the other hand, almost all governments, in their struggle to strengthen their “social
contract” with citizens, are utilizing information technology to enhance public service delivery to
society (Neely, 2014). When "e-commerce" is brought into the concept of public service delivery,
the "e-government" concept emerges. Silcock (2001) describes “e-government” as one which uses
technology to enhance access to government services for the benefit of citizens, businesses and
other stakeholders, thereby creating a new mode of public service where public agencies deliver a
“modernized and seamless public service”.
Shahjee (2016) posits that when any of the e-commerce models [i.e., business-to-business
(B2B) model; business-to-consumer (B2C) model; consumer-consumer (C2C model; and
consumer-to-business (C2B) model] involves the government, “e-governance” models ensue.
Pertinently, as the government performs its regulatory power over businesses, the government-to-
business (G2B) model becomes relevant (Shahjee, 2016: 3135).

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The Philippine government, in recognizing these modern changes and the convenience that
it brought to everyone, initially tried to ease its citizens’ burden by formulating and implementing
laws and policies in order to involve technology in government dealings and transactions.
The E-Commerce Act of the Philippines was enacted in the year 2000 as Republic Act
8792 to acknowledge the value of electronic documents in business transactions. It likewise
recognizes their existence as if they were paper-based original documents in order to reduce the
gargantuan amount of papers being used each time. As the law has succinctly put it, the objective
of the law is “to recognize the authenticity and reliability of electronic documents related to
(commercial and non-commercial) activities and to promote the universal use of electronic
transaction in the government and general public”, making electronic documents as good as the
originals.
More than a decade after, various government agencies did their part to speed up
government processes via technology, from tax return forms of the Bureau of Internal Revenue
(BIR) and government remittances for the Social Security System (SSS), Employees
Compensation Commission (ECC), Philhealth, Home Development Mutual Fund (HDMF) and the
Bureau of Internal Revenue (BIR), to many other applications for government clearances, permits
and licenses.
The shift from manual to electronic applications, submissions, filing, and compliance
transpired as a result. Even evidence presented in courts no longer need to be paper-based as long
as there is a faithful reproduction thereof in electronic form. The “Rules on Electronic Evidence”
(Supreme Court [SC], 2001) prescribes that “an electronic document shall be regarded as the
equivalent of an original document under the Best Evidence Rule if it is a printout or output
readable by sight or other means, shown to reflect the data accurately.”
However, even the courts of justice were confronted with transition challenges in
implementing the shift towards being “paperless”. How will a party present electronic evidence
in court without printing it out and making it paper-based? It is also required that printouts be
furnished the Court and other parties. The “Efficient Use of Paper Rule” (Supreme Court [SC],
2012) as supplemented by the “Rules on E-Filing” (Supreme Court [SC], 2013), as another
response to this shift, intends to ease the burden of submitting pleadings and evidence via email or
compact discs. While these Rules have substantially reduced the number of copies to be submitted
in courts, the fact remains that printouts are still required to be made and submitted. For the
Supreme Court, one original copy and four additional copies of the pertinent records of voluminous
proceedings before the lower courts, together with two sets of annexes are required (Supreme
Court [SC], 2013: Section 5a).
For business enterprises, resort to courts oftentimes becomes the last option, but their
dealings with various regulatory agencies remain a requirement for their survival and exercise of
“privilege of doing business”. In view of this transition and shift from manual to electronic
applications, there is a need to examine how it works and how selected government agencies make
it operational at the level of business enterprises complying with government processes via
technology.

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RESEARCH OBJECTIVE

This research aims to identify, by way of a case study of XYZ Corporation, a business
entity duly licensed and engaged in providing security services to the public, the connects and
disconnects between the spirit and intent of the E-Commerce Act and its related implementing
laws and regulations vis-à-vis their actual implementation by regulatory agencies of business
transactions.

FRAMEWORK

Government actions generally emanate from the will of the sovereign people (Constitution,
1987: Art. II, sec. 1, in relation to Art. XI, sec. 1) which serves as the basis for regulatory
mechanisms instituted by various departments of government. Citizen preference becomes
primordial in these government-instituted control mechanisms, which either results in citizen
satisfaction or dissatisfaction. The outcome of these regulatory measures, whether favorable or
unfavorable to the minds of the citizenry, initiates another set of citizen preferences as determined
by the majority in a democratic society like the Philippines. Thus, a series of continuing phases
and transitions from each particular phase (Caraan, 2010b). The continuum is therefore presented
in Figure 1.

Regulatory prescriptions from any branch of government, whether legislative, executive or


judicial, are certainly for a particular governance purpose derived from the foregoing governance
continuum. These governance prescriptions are oftentimes referred to as regulatory mechanisms
required through either legislation, executive fiat in the exercise of the quasi-legislative authority,
judicial administrative authority over courts and legal processes or judicial determinations or
decisions which become part of the Philippine laws. In all these instances and in whatever form
they are prescribed, they are recognized by the citizenry as mandatory regulations, unless
otherwise specified. Being such, compliance is expected and required in order to continue
exercising the “privileges” (not rights) seemingly conferred by the state. Business establishments
are certainly covered by these “mere privileges” extended by government regulations.

However, it is a well-entrenched principle in Administrative Law and even in Public


Governance that for a regulation to be valid, it must be reasonably connected with the purpose and
intent for which it was enacted [Supreme Court, 1988: Lupangco vs. CA [160 SCRA 848]). In
business regulatory policies, the law or regulation being implemented by government regulatory
agencies are expected to necessarily aid in the facility of doing business in the country.

This is not only logical in attracting business investments in the country but also is in
consonance with the "governance continuum" framework where citizen satisfaction or
dissatisfaction determines the will of the sovereign people (Figure 1).

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On the E-Commerce Act of 2000 as a form of business regulatory mechanism, Figure 2
(Caraan, 2010a) demonstrates the framework on how the intent of the law could be transformed
by government regulatory agencies through either legislation, executive fiat, judicial
administrative authority over legal processes, into a synergized facility of doing business in the
Philippines.
Figure 1: Governance Continuum

GOVERNMENT
CITIZEN ACTION
PREFERENCE

CITIZEN
SATISFACTION or
DISSATISFACTION

Hence, the government needs to make a "balancing act” between the rights and power of
the state vis-à-vis the will of the sovereign power who has been conferred with “privileges”
translatable to “rights” using the “governance continuum” presented in Figure 1.

Figure 2: Schematic Presentation of Research Framework

R E S E A R C H FR A M E W O R K

Government
Spirit and Regulatory
Intent of the Agencies
Law E-Commerce
Act of 2000

?
Connect or Facility of Business Connect or
Disconnect? Disconnect?

In using this framework, the researcher shall identify, by way of a case study of XYZ
Security Agency Corporation, the connects and disconnects between the spirit and intent of the E-
Commerce Act and it's related implementing laws and regulations vis-à-vis their actual
implementation by regulatory agencies of business transactions.

METHODOLOGY

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This research is a case study of a specific business entity engaged in security agency
business in Quezon City, employing more than 1,500 security guards, and shall be referred to
herein as XYZ Corporation to preserve the confidentiality of business data shared. It is a law-
regulations comparative study using the descriptive approach in conducting the case analysis.

In identifying the connects and disconnects between the spirit and intent of the E-
Commerce Act and its related implementing laws and regulations vis-à-vis their actual
implementation by regulatory agencies, the researcher limited the review to said business
corporation’s electronic reporting compliance prescribed by the four most popular business
regulatory agencies such as the SSS/ECC, Philhealth, HDMF and the BIR.

This case study is limited to the actual experiences of XYZ Corporation and whatever
findings and conclusions that are made in this research are based only on, and pertains exclusively
to its actual experiences and cannot be extended to similarly-situated businesses and other
companies doing business in the Philippines, in general.

DISCUSSION / ANALYSIS

XYZ Corporation’s BIR “e-Experience”:


As compliance with the shift, the BIR has selected the yearly, quarterly and monthly forms
which are now required to follow the electronic filing and payment process. Culled from the BIR
website (Bureau of Internal Revenue [BIR], n.d.), the following regular business transactions with
the BIR are covered:

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Table 1: BIR Forms Covered by E-filing and Payment System


Thus, the other BIR transactions remain to be part of the manual filing and payment system
requiring multiple printed forms. Being selective in nature, the shift remains to be merely partial
at the BIR. Many BIR transactions remain uncovered by the system such as documentary stamps
taxes, capital gains taxes, the authority to print Official Receipts, Account Information Form, final
taxes withheld, and surprisingly, even BIR Form 1703 which is the Annual Income Information
Return for Non-Resident Citizens and Overseas Contract Workers are not covered. The fact that
the last form is specifically made for income earned abroad makes it appalling.
Significant to note from XYZ Security Agency Corporation is that while most of their
regular BIR transactions have been covered by the system, printouts of said forms are still required
despite BIR electronic validation. Said corporation, despite its regular e-submission of BIR
required reports have been assessed penalties, surcharges and interests for failure to file/comply
despite BIR e-validation. To prove one’s case would necessitate presentation to BIR of its
confirmation receipt earlier issued which further requires printouts even if saved on computer files
or cloud storage. The further concern remains on the efficacy and reliability of the cloud storage
system. Hence, in order to protect itself from unnecessary and sometimes unreliable BIR
recording systems, the printout system remains dependable.
XYZ corporation likewise maintains and preserves all its BIR printout records since its
incorporation in 2001. By experience last 2018, it received letters of BIR tax deficiencies for
years 2004 onwards. Also, when it requested for another Authority to Print official receipts also

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last 2018, BIR assessed it of several deficiencies and penalties for non-filing of required reports
way back 2004, but upon verification of the company’s printout records, they had duly and fully
complied, contrary to the given notice of delinquencies.
Additionally, even if the forms can be filed electronically, the methods of payment that
would enable you to finish your transaction electronically are limited. Electronic pay methods of
payment can be made only with Landbank, DBP, or Globe Gcash only. If XYZ Corporation has
no online bank account with the Authorized Agent Banks (AAB), it needs to print out BIR forms,
go to any of said AABs, and manually pay required taxes. Keeping printout records is the
plausible solution chosen by XYZ Corporation given these binding constraints.
Furthermore, even if a person has a bank account with an AAB that does not automatically
mean that one has an online bank account which would make the payment process paperless. One
needs to apply for an online bank account which requires having an ATM card or a credit card
with the AAB in order to have an online bank account. This is observed to be a binding constraint
in the facility of doing business because not all business enterprises have ATM cards since this is
popular for individuals, not for business entities. The same thing with credit cards. For Gcash,
the limitation is that it is only for those who subscribe to the Globe network. Thus, many taxpayers,
like XYZ Corporation, will certainly continue to resort to printing out BIR forms and manually
pay to the bank of their choice in order to finish their transaction and document the same securely.

XYZ Corporation’s SSS “e-Experience”:


SSS introduced an online system for easier monthly remittances of mandatory insurance
premium contributions and loan payments. The procedure requires filling out a form online
through a personal account of any authorized personnel of the business enterprise and save it via
the SSS online system. SSS is linked with BancNet and Unionbank E-Payment Services. For XYZ
corporation, this limited range of options to make SSS transactions paperless remains a binding
constraint for business enterprises because for those who do not have online accounts with the SSS
selected E-payment Services are constrained to print out all the electronically accomplished forms,
physically submit the forms to the payment centers and manually pay, and later submit to SSS
printouts of proofs of payment with USB, for SSS recording and validation.
XYZ corporation has, for several times, experienced being assessed by SSS of non-
remittances, penalties, and interests, which after verification with their printout files, as part of
their records management, would prove to be erroneous. Worse, XYZ Corporation has to
photocopy all their records, proofs of remittances/payments, and SSS validation receipts for
submission and verification by SSS to dispute their erroneous assessments.
Worst, for years 2016 to 2019, XYZ corporation has received notices of SSS assessments
of fines, penalties, surcharges and interests for reporting years for almost two decades ago, i.e., for
years 2002 to 2009. Not all business enterprises would follow the practice of XYZ Corporation in
maintaining all its records since its establishment in 2001 until the current year, and probably for
more decades to come. XYZ Corporation attests that this is not cost-efficient because it had to

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lease a separate condominium unit only to store and secure the hard copies of all their business
files.
XYZ Corporation’s Philhealth “e-Experience”:
Philhealth also has an online system that citizens can use in order to generate their monthly
contributions. Similar to SSS and BIR, the online/electronic filing loses its purpose when said
agency requires physical presentation and validation of physical copies of the billing statement
and remittance to the accredited collecting agent for purposes of issuance of Philhealth Agents
Receipt (PAR). Hence, this new payment procedure which is a response to the call for a paperless
system is not actually paperless.
XYZ Corporation shares that Philhealth’s electronic repository files still pose an accuracy
challenge. Just like for BIR and SSS, business enterprises still need to document well through
printouts or cloud storage (which requires printing to refute erroneous assessments) for future
assessments.
XYZ Corporation’s HDMF “e-Experience”:
Based on the actual practice of XYZ corporation, monthly Pag-IBIG Fund remittances to
the HDMF are done through an online system, and the process is easier if simply an excel file is
provided and submitted and saves it for future reference. Registration for an online account,
however, requires printouts of forms for submission, registration, and processing at a Pag-IBIG
office. Similarly, online payment methods cannot do away with the printing of forms for
submission to the collecting bank or agent for recording, validation and safekeeping purposes.
Efficient record-keeping of HDMF records is likewise maintained and preserved by XYZ
Corporation because of its experience in the year 2016 that there were discovered inconsistencies
in their Short-Term Loan Remittances for their employees. This was again attributed by XYZ
Corporation as a system and process vulnerability which oftentimes operates to the prejudice of
business enterprises who unfortunately always have the burden of proving their compliance with
regulatory mechanisms of the government.

The intent of E-Commerce Law vs. Business Regulatory Implementation


In order to ease or create a facility in doing business in the Philippines, the Philippine
government, enacted the E-Commerce Act (2000) to recognize electronic documents’ existence as
if they were paper-based original documents in order to reduce the gargantuan amount of papers
being used each time. After more than a decade after, various Philippine government agencies
embraced the law and created new developments to speed up government processes via
technology, from BIR tax return forms to government remittances from businesses to SSS, ECC,
Philhealth, and HDMF.
As experienced by XYZ Security Corporation, the shift from manual to electronic
applications, submissions, filing, and compliance went painstakingly slow and regulatory

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mechanisms put in place were not sufficient enough to address the "birth pains" of the transition.
The intent of developing regulatory strategies that are paperless, so as to ease business regulatory
compliance, was not effectively and efficiently attained, as apparently, the implementing
mechanisms created did not so work, as experienced by XYZ Corporation. What was envisioned
to be paperless entailed a lot of paper documentation on the part of XYZ Corporation which
certainly defeated the purpose of the law?
Based on the experiences of XYZ Corporation, challenges encountered in the
implementation phase, however, were posted by (a) less-advanced technological capabilities of
our government agencies; (b) need for a more intensive training for government employees
concerned in the implementation phase; (c) more private-public partnerships for enhanced
technological advancements, networks, capability and capacity building; and (d) accountability
and political will on the part of government regulatory agencies is not always "passing the buck"
of their responsibility to business establishments.
At this point, the Philippines, being one of the developing countries, has to necessarily
contend with these “transition challenges”, but in order to address the “citizens’ expectations” as
illustrated in Figure 1 [“Governance Continuum”], it has to sufficiently and swiftly address the
same. Any failure of “government action” could possibly result in “citizen dissatisfaction which
could necessarily create a new “citizen preference”.
Nevertheless, failing to address these “transition challenges” may be a temporary
condition: for developing countries like the Philippines, it may be in a “natural order of things”.
However, the “governance continuum” (Figure 1) framework indispensably requires government
action to sufficiently and swiftly make the required “balancing acts” in order to achieve the primary
purpose of government.
As Silcock (2001), Shahriari, et. al. (2015), Neely (2014) and Shahjee (2016) have
emphasized on “e-revolution” in doing businesses, with “e-commerce” and “e-government”
already necessarily intertwined, Shahjee’s (2016: 3135) government-to-business (G2B) model
becomes more and more relevant. This, therefore, affirms the need to strengthen the Philippine
government's “social contract” with its citizens, particularly in utilizing information technology to
enhance public service delivery to society (Neely, 2014), and when “e-commerce” is
“successfully” brought into the concept of public service delivery, the concept of “e-government”
could properly evolve further into “e-governance” which is an essential attribute of “good
governance”.
In business regulatory parlance, it is what Silcock (2001) was referring to as delivery of a
“modernized and seamless public service” which necessarily would create ease or facility to do
business in the Philippines.

The validity of Business Regulatory Mechanisms?

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Following the legal framework prescribed in Lupangco vs. Court of Appeals [Supreme
Court, 1988: 160 SCRA 848), the validity of a business regulatory mechanism can best be judged
by looking at its reasonable connection with the purpose and intent of the law it attempts to
implement. Hence, if the implementation regulations cannot adequately achieve the "end" or the
intent of the law, which ultimately is to necessarily aid in the facility of doing business in the
country, then such implementing regulations should be struck down as invalid.

However, the researcher personally feels that it is “too early” to judge the validity of these
business regulatory mechanisms prescribed and implemented by the identified agencies. It is “too
early” and premature to determine that these implementing regulations “cannot adequately
achieve” the “end” until the identified four transition challenges above are sufficiently addressed.

CONCLUSION

XYZ Security Agency Corporation’s “e-Experiences” with the selected government


regulatory agencies for business enterprises have proven that efficient record-keeping of
government agencies remains a challenge even after the institution of e-filing and payment system
as part of its attempt to provide an avenue for, and require a shift towards “paperless facility of
doing business”.
It bears stressing, however, as it was emphasized in the methodology portion of the study,
that his case study is limited to the actual experiences of XYZ Corporation and the foregoing
findings and conclusions are based only on, and pertains exclusively to its actual experiences and
cannot be extended to similarly-situated businesses and other companies doing business in the
Philippines, in general.

While the E-Commerce law and its implementing regulations have set the tone in
acknowledging the value of electronic documents in business transactions in order to reduce the
gargantuan amount of papers being used in each business transaction, the mechanisms set by
implementing agencies to achieve this are sufficient “to steer” the consciousness of business
enterprises and their stakeholders, together with the government’s regulatory actors, towards a
digital era of globalization.

It is well-settled that there is really a need for online or electronic filing of government's
mandatory requirements for the facility of doing business here in the Philippines. But given the
XYZ corporation’s “e-Experiences”, is the country adequately prepared for this shift without
sufficiently addressing first, the four identified “transition challenges”?

The disconnects can be readily seen in the binding constraints experienced by XYZ
corporation as the initial mechanisms placed by the government's regulatory actors still fall short
of the genuine spirit and intent of the law. A lot of “rowing” has to be done at this point not only
towards the accomplishment of the goals of secure, efficient and dependable digitalization but also
to synergize the wisdom of the law and the implementation aspect thereof.

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Experientially, the Philippines’ business regulatory agencies do not have yet a reliable
electronic repository system for monitoring of compliance to facilitate business transactions. The
Philippines remains to be in a transition phase towards a digital era: “birth pains” and challenges
are expected to linger, but hopefully, not for another decade to ease doing business in the country.

Global Implications

From the experiences of XYZ Corporation, industry-wide and nation-wide implications of


this study could be easily made because said corporation, small as it is compared to the entire
industry and to nationwide industries in general, could possibly represent a microcosm of a larger
group.

The globally accepted reality, as signified by the cited authors, that “e-commerce” and “e-
government” should be, and are necessarily intertwined, is affirmed by this study. The plausibility
of incorporating "e-commerce" in the government's public service delivery is clearly demonstrated
herein. However, the fusion of the two necessitates a transformation of “governance mechanisms”
into “e-governance” mechanisms by sufficiently and swiftly addressing the four identified
“transition challenges”. Besides, the concept of “e-governance” could now be accepted as an
essential component of “good governance” in Public Administration.

“E-commerce” has become a significant tool for all businesses worldwide, be it large-scale
or otherwise, not only to do business for the private sector but also to regulate businesses for the
government sector. Most importantly, “e-commerce” shall definitely provide a significant link
between the two. Ultimately, in being able to provide ease or create a facility in doing business,
these governments worldwide could be judged reasonably well in their respective “social
contracts” with their citizens.

Areas for Future Studies

This study recommends that further similar case studies be conducted on other business
industries, for validation purposes, and eventually to representative business establishments,
across industries.

A similar study is suggested to be made after the identified four “transition challenges” are
addressed by the Philippine government, for purposes of assessing their sufficiency/effectiveness
and efficiency. Individual separate further studies could also be made on these four identified
“transition challenges”.

REFERENCES

1987 Constitution, Republic of the Philippines


Bureau of Internal Revenue (n.d.) E-filing and payment system (EFPS). Retrieved from
https://efps.bir.gov.ph/

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Caraan, H. (2010a) A proposed integrity model in the administration of labor justice. Philippine
Journal of Public Administration (PJPA), Volume LIV, Nos. 1-2, ISSN 0031-7675
(indexed): Diliman, Quezon City
Caraan, H. (2010b) Public-private sectors’ role in the clean administration of labor justice:
transforming a problematic confluence into a confluent solution. Doctoral Dissertation,
University of the Philippines National College of Public Administration and
Governance, Diliman, Quezon City.
Khan, A. (2016) Electronic commerce: a study on benefits and challenges in an emerging
economy. Global Journals Inc., USA, Vol. 16(1), ISSN: 2249-4588 & 0975-5853
Laudon, K. C., and Laudon, J. P. (2013) Management information systems: managing the digital
film. 12th Edition, Pearson, Delhi.
Neely, P. (2014) The impact and implementation of e-commerce in government & law
enforcement. Journal of Management Policy and Practice, Vol. 15(1).
Ohidujjaman, et. al. (2013) E-commerce challenges, solutions and effectiveness perspective
Bangladesh. International Journal of Computer Applications, Vol. 70 (9), pp. 9-17
Ray, J. S. (2011) Leveling e-commerce opportunities for developing countries. SMC University.
Swiss Management Centre, Transknowlogy Campus.
Republic Act 8792, E-commerce Act of the Philippines, 14 June 2000
Shahriari, S., Shahriari, M. and Gheji, S. (2015) E-commerce and IT impacts on global trends
and market. International Journal of Research – Granthaalayah, Vol. 3(4), ISSN: 2350-
0530(O) & 2394-3629(P)
Shahjee, R. (2015) The impact of electronic commerce on business organization. Scholarly
Research journal For Interdisciplinary Studies, Vol. 4(27), ISSN: 2278-8808
Silcock, R. (2001). What is e-government? Parliamentary affairs. Vol. 54, pp. 88-101. Retrieved
from
frhttp://catedras.fsco.uba.ar/rusailh/Unidad%202/Silcock%202001,%20What%20is%20
E-gov.pdf.
Supreme Court Administrative Matter (A.M.) No. 01-7-01-SC, July 17, 2001, Rules on
Electronic Evidence
Supreme Court Administrative Matter (A.M.) No. 11-9-4-SC, November 13, 2012, Rule for
Efficient Use of Paper
Supreme Court Administrative Matter (A.M.) No. 10-3-7-SC, September 10, 2013, Rules on E-
filing
Supreme Court Decision (1988), Lupangco vs. Court of Appeals, 160 SCRA 848.

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JGB 1270
The Contribution of Management Information
System on Innovative Performance: The Case of
MMI Company
Dr. Harvey Ong
De La Salle University, Manila
Harvey.Ong@dlsu.edu.ph

ABSTRACT

Management Information Systems (MIS) is the usage of information systems at the


operational, tactical, and strategic levels so that businesses are aided in the achievement of
goals (Oprea, 2007). While the use of MIS is already quite common, its many benefits have
lately piqued the interest of researchers, particularly on its drive to bring in different types
of innovation. Innovation is almost always inherently present in MIS due to MIS'
specialization from company to company, this study will simply show the extent and effect
of particular types of innovations for MMI's MIS. The researcher conducted the study by
identifying the innovative performance contributed by the use of MIS. The researcher
measured the extent at which the following types of innovation were adopted by the firms:
organizational innovation, marketing innovation, process innovation, product innovation,
behavioral innovation, risk innovation. The results of the study showed that in the home
garden industry even small companies like Marswin Marketing have tried using MIS and
have seen good results, and it has contributions to different types of innovations. MIS has
significantly reduced paper trail from the company. It also made the companies become
transparent internally because all transactions are recorded, it can be reviewed by
management any time they wish. It also saves time because most information is just a click
away; this has also reduced discrepancies and mistakes caused by human error.

Keywords: Management Information System, Innovation, Organizational


Innovation, Marketing Innovation, Process Innovation, Product Innovation,
Behavioral Innovation, Strategic Innovation.

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INTRODUCTION

1.1 Background of the Study

One of the most important things needed to keep up with the fierce competition in
business is efficiency. In the current age where technology is rapidly evolving, the use of
technology to manage information is becoming more popular. This technological revolution
gave rise to information systems (IS), which are designed to reduce human error and improve
efficiency with the aid of technology. There are several factors that contributed to the
popularity of IS, foremost of which is the cheap access to educated human resources. These
factors, however, cannot be the only reason why countries in Asia like the People's Republic
of China, India, Malaysia, and the Philippines, are progressing faster than most of the other
areas. There are countries with similar situations as these fast-growing nations, and it can be
said that there is no one method that can work for every country since each one should
develop their own approach that is relevant to their needs.

Management Information Systems (MIS) is defined by Oprea (2007) as the usage of


information systems at every level, may it be in operational, tactical, or strategic decisions,
to help businesses achieve their goals and objectives. Hence, MIS is a system that collects
and processes data and provides it to managers at all levels for decision- making, planning
and implementation (Michalek, 2006). However, Dehning, Dow, and Stratopoulos (2004)
cast doubts regarding the credibility of information systems as there was an era, known as
the productivity paradox era, where it was observed that there were no links between
financial performance and the usage of IS. This led to several organizations to temporarily
veer away from using such technology as they deemed it to be ineffective and wasteful.

1.2 The rationale of the Study

Research by Tan and Peng (2003), among others, mentioned that there is a significant
relationship between information technology and organizational efficiency and performance.
Management information system contributes to the effectiveness and efficiency of
organizations by providing relevant information for sound decision-making and by providing
assistance in making necessary changes in the organizational plans and procedures. This is
supported by the study of Adonie, Russo, and Dean (2007) that relevant information through
the use of MIS can provide a recommendation to enhance products and allows the
organizations to gain a competitive advantage in this fast-changing environment. The effects
of MIS can be seen from the perspective of customer service, financial and operations
management of firms. De Queiroz and Olveria (2014) also support this, stating that
companies such as clothing retail businesses are searching for such technology that gives
them more flexibility and smoothen operations, as well as give them a competitive advantage
over their current competitors and soon-to-be competitors. These improvements from MIS
typically come in the form of innovations.

1.3 Statement of the Problem

“What is the contribution of Management Information System (MIS) to Marswin


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Marketing Inc.'s innovation?”
1.4 Objectives of the Study

The main objective of this research was to determine the contribution of the Management
Information System (MIS)'s to Marswin Marketing Inc.'s innovation.

1.5 Significance of the Study

The study offered significant information with regards to how management information
systems (MIS) affected organizational innovation leading to strategic planning. The results
of the study revealed important information for the benefit of the following entities:

▪ Academic Community
This research paper will benefit faculty teaching computer subjects, and the students
taking up MIS courses and subjects. The faculty can share the information of these research
papers to their students, and they would also have an idea on what specific topics need to be
discussed in class lectures. On the other hand, students would be able to apply it in the real
business application when they graduate.

 Different corporations in Metro Manila, Philippines


To give them feedback on how other companies use the Management Information System
(MIS) for their daily business transactions. They can also benchmark the best practices from
companies that are using Management Information System. The companies can also have
an idea on how to further improve in the utilization of their Management Information System
which can help them streamlined their processes and enhanced their decision making
processes when working in a group.

1.6 Scope and Limitation

The uses of Management Information System (MIS) focused on this study were limited
to the MMI Company only. One MIS was used for the basis of this study. This study is only
limited in the Philippines due to obvious logistical and cost constraints. Other strengths and
weaknesses found were not used as indicators of organizational innovation. Some
information requested from the company was deemed too confidential and were not disclosed
by the key informant; these included financial records, specific names of their MIS and their
developers, and a variety of sensitive company documents.

FRAMEWORK

2.1 Theoretical Framework

2.1.1 Types of Management Information Systems (MIS)

The four categories of management information systems are based on the level of
support that the information system provides in the process of decision making.

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Databank Information System is responsible for observing, classifying and storing any
data item that can potentially be useful to the decision maker. The information from
the databank system is only suggestive and it is best for unstructured decisions.
The Predictive Information System provides data and information as well as
predictions and inferences. This system assists decision makers in answering “what if”
questions and it verifies if the underlying assumptions are true. Hence, this type of MIS
has catered towards semi-structured decisions.
The Decision-making Information System gives professional or expert
recommendations to managers in the form of a single recommended course of action or
a list of possible courses of action, all of which are according to the value system of the
organization. A decision-maker only has to approve, deny or modify the
recommendation, hence, making decision-making faster yet still accurate. The decision-
making information system is more suitable for structured decisions.
Lastly, the Decision-Taking Information System is where the information and the
decision maker are the same. It has both the abilities of the predictive information
system and the decision-making information system. It is when the system is
completely accurate that it creates decisions without actual managerial interference.

2.2 Operational Framework

The use of
Management
Information
Systems

Figure 2.2 Operational Framework

The framework presented above shows us that using MIS is already a conduit to
generating innovation. This is because MIS are often specialized for a company's need
and the more specialization in a task, the more innovation is generated and required.

2.5 Operational Definition of Terms

 Hardware – these are the physical components of the computer that enables it

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to run a mix of programs and processes called software
 Human Resources – a group of people who make up an organization’s
workforce
 Innovation – an idea and actualization of future needs or wants
 Management Information System (MIS) – a computer-based system that
provides upper management tools to evaluate and make decisions
 Strategic Planning – systematic process of envisioning future and translating
this vision into desired goals or objectives
 Strength – an advantage or benefit of an organization
 Technological innovation- development of different innovations that create
improvement in technology
 Utilization – to make effective use of something
 Weakness – a disadvantage of an organization that needs to be improved

RESEARCH METHODOLOGY

3.1 Company Background

Marswin Marketing Inc. (MMI) started operations on March 15, 1993, with its prime
location at 553 Caballeros Street in Binondo, Manila with only 1 driver, 2 helpers, 1 staff
and the owner Marites, Sany, and Sherwin which is where the name of the company is
derived. MMI carries construction products such as alumni screens, ball hinges, padlocks,
deadbolt locks, drawer accessories, fabric filler, floor sanding, foam filler, handle set,
varnish, paint rollers, and brushes, spray paint, steel padlock, weld wire and many more.
Agents, particularly in GMA, South Luzon, and North Luzon are dispatched to promote
the products and look for the client. The company initially had fewer brands than it offers
today, namely Dutchboy, Vulcaseal, Rugby, Solignum and Pioneer. The product base
quickly grew and within a few months after Marswin's primary year of operation, suppliers
began offering their products to Marswin Marketing Inc. In 1996, Legend Carbide became
the company's house brand product. In 2012, MarswinMarketing transferred its office to
405 San Nicolas Street in Binondo which is where the company resides until now and its
warehouse was located at Phase 2 Brgy. Punturin, Valenzuela City. Marswin Marketing
was heavily reliant on freelance agents since its founding up until 2006, wherein the
company started hiring direct sales representatives in selected areas. Marswin Marketing
has served several different regions and is continuing to promote its own product, Legend,
with the same logo as MMI. Almost 8000 accounts of hardware and electrical supply stores
and under MMI (GMA and Luzon).

3.2 Research Design

This mixed-method study used the single-embedded case study design in gathering as
well as analyzing data. Methods to gather both quantitative and qualitative data included
surveys, participation-observation, and fieldwork. The survey was used in the study as it
can gather data from a large population in a relatively convenient and efficient manner.
Surveys are systematic, self-monitoring and representative as it is often used in research
studies (Burton, 2007). Survey as a methodology studies the sampling of individual units
from a population and constructs questionnaires as a form of quantitative data collection.
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Furthermore, survey forms were also deployed to assess the management information
system (MIS) contributions in an organization. The researcher chose to do fieldwork for
this study since it is often used to monitor human behaviors in natural conditions of their
daily life (Basinska, 2012). Hence, the researcher is closer to the real world and thus gains
from immediate contact with the respondents. It is one of the best ways to discover the
particular information required and to answer research problems.

Basinska (2012) emphasized the importance of fieldwork especially in data gathering


in a company as it allows the researcher to interact, understand the people in the company,
and see problems that cannot be extracted from interviews. Through the use of the data
from the surveys and interviews, the proponent used descriptive analysis method of
analysis for this study. Descriptive analysis is the summarization of the data retrieved from
the respondents and presenting them in an easy to understand manner; this includes the
mean, and mode. For the case of this study, however, the researcher decided not to include
the median as it is not relevant to the investigation.

3.3 Sampling Plan

MMI has been screened to make sure that they have been using management information
systems (MIS) for at least three (3) years to account for the lag effect in innovation. The
chosen companies were given surveys to be answered by both internal and external users to
determine the effect MIS has on employees and their customers. Furthermore, as this study
used a mixed method approach, the researcher also conducted interviews with all the
departments involved in using the chosen companies' MIS, as well as the finance and
information technology (IT) departments to obtain the needed information outside of the
surveys. The internal respondents refer to the employees that use the MIS and the external
users refer to the long term (5-10 years) clients of the companies.

3.4 Method of Data Analysis

According to Creswell (2009), there are different approaches in a mixed method data
analysis. In concurrent strategies, data can be transformed into either quantifying
qualitative data or qualifying quantitative data. Quantifying qualitative data involves
creating codes and themes and counting the number of times they occur in the text data
which enables a researcher to compare results with the data. another approach is to examine
multiple levels. In a concurrent embedded model, surveys were conducted at one level to
gather quantitative results about a sample, and interviews were done at the same time to
be able to explore the phenomenon with specific individuals.

RESEARCH FINDINGS

4.1 Demographic Profile

Company Name Internal External


Respondents Respondents

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Marswin Marketing Freq % share Freq %
Inc. count count share
1. Location
Warehouse 9 27.27% N/ N/A
A
Office 24 72.73% N/ N/A
A
2. Age
18-25 17 56.67% 1 6.67
%
26-30 6 18.18% 3 20%
31-35 4 12.12% 1 6.67
%
36-40 1 3.03% 3 20%
41-45 0 0 6 40%
%
46-50 1 3.03% 1 6.67
%
51-55 3 9.09% 0 0%
56-60 1 3.03% 0 0%
3. Gender
Male 12 36.36% 15 100%
Female 21 63.64% 0 0%

Marswin Na Ran
me k
4. IT Representative
Jason Figueroa IT Administrator

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4.2 Types of Innovation

To reiterate, the following are the definitions of the 6 types of innovations to be used in
the study. Organizational Innovation is the application of new methods in the organization's
business practices. Marketing innovation is the implementation of new marketing methods
involving changes in product or packaging design, promoting the product and/or pricing.
Process innovation is the execution of new ways to produce or deliver the intended output.
Product innovation is the launching of an improved or completely new product, which
focuses on "technical specifications, components and materials, incorporated software,
user-friendliness or other functional characteristics" (Gunday, Ulusoy, Kilic, and Alpkan,
2011). Behavioral innovativeness is the sustained change in people's behavior towards
innovation after being introduced to an external factor, usually, this may be due to support
from top management regarding the employees having an innovative mindset. Strategic
innovation is the development of new strategies that create a certain competitive advantage
for the firm against the current market. (Wang and Ahmed, 2004)

Table 4.21 Innovation summary

Innovation Respondents Marswin Marketing


Organizationa Internal Mean: 3.59
l Mode: 4
External Mean: 4.09
Mode: 4
Marketing Internal Mean: 3.68
Mode: 4
External Mean: 3.55
Mode: 4
Process Internal Mean: 3.63
Mode: 4
External Mean: 3.68
Mode: 4
Product Internal Mean: 3.66
Mode: 4
External Mean: 3.8
Mode: 3
Behavioral Internal Mean: 3.53
Mode: 4

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External Mean: 4.15
Mode: 4
Strategic Internal Mean: 3.76
Mode: 4
External Mean: 3.93
Mode: 3

4.2.1 Organizational Innovation

For MMI, organizational innovation has a mean of 4.093 and has a mode of 4. The
respondents agree that the company is executing innovative ways of attracting its customers,
renews its quality management and the organization structure to coordinate with its customers,
and creates new business practices that will enhance their business relationship with the
company. For Marswin Marketing, the mean score for the questions under organizational
innovation for Marswin Marketing shows a score of 3.58. All of the numbers had a mean score
of a neutral response except for number 5. All of which are leaning towards agreeing. Thus, we
can conclude that the users somewhat agree that the company renews its routines, procedures,
and processes to execute firm activities in an innovative manner, the company renews the supply
chain management system, the company renews the production and quality management
systems, the company renews the human resources management system, the company renews
the organization structure to facilitate teamwork, the company renews the organization structure
to facilitate coordination between different functions such as marketing and manufacturing, the
company renews the organization structure to facilitate project type organization and that the
company renews the organizational structure to facilitate strategic partnerships and long- term
business collaborations. Question 5, on the other hand, had an agree response which means that
the users agree when asked the company renews the in-firm management information system
and information sharing practice.

4.2.2 Marketing Innovation

For MMI, the mean score for the questions under marketing innovation shows a score of 3.68
and a mode of 4. All of the questions had a mean score response of agreeing except for number
11. Which means that the users agree that the company renews the design of the current and/or
new products through changes such as in appearance, packaging, shape, and volume without
changing their basic technical and functional features, the company renews the product
promotion techniques employed for the promotion of the current and/or new products, the
company renews the product pricing techniques employed for the pricing of the current and/ or
new products and that the company renews general marketing management activities. On the
other hand, question 11 had a mean score of neutral which means that the users feel neutral when
asked if the company renews the distribution channels without changing the logistics processes
related to the delivery of the product

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For Marswin Marketing, the marketing innovation part has a mean of 3.55 and has a mode of 4.
The overall response of the respondents is neutral, however, it is leaning more on the agree side.
The respondents remain neutral about how the company renews its products, pricing, and
promotion.

4.2.3 Process Innovation

For Marswin Marketing, the mean score of the questions under process innovation shows a
score of 3.63 and a mode of 4. All of the questions had a mean score response of agree. Which
means that the users all agree that the company determines and eliminates non-value adding
activities in production processes, the company decreases the variable cost components in
manufacturing processes, techniques, machinery and software, the company increase output
quality in manufacturing processes, techniques, machinery and software, the company determine
and eliminate non-value adding activities in delivery related processes and that the company
decreases variable cost and/or increases delivery speed in delivery related logistics processes.

For Marswin Marketing, the process innovation has a mean of 3.68 and a mode of 4. Thus, the
respondents choose to be neutral, however, it is leaning more on the agree response. Thus, the
respondents agree that the company determines and eliminates non- value adding activities and
they decrease the variable cost components and increases the output quality in their manufacturing
process, techniques, machinery, and software.

4.2.4 Product Innovation

For Marswin Marketing, the mean score for the questions under product innovation shows a
score of 3.66 and a mode of 4. All of the questions except for question number 21 had a mean
score response of agree. Which means that the users agree that the company increases
manufacturing quality in components and materials of current products, the company develops
newness for current products leading to improved ease of use for customers and to improved
customer satisfaction, the company develops new products with technical specifications and
functionalities totally differing from the current ones ant that the company develops new products
with components and materials totally differing from the current ones. On the other hand, question
21 had a mean score response of neutral. This means that the users feel neutral when asked if the
company decreases manufacturing cost in components and materials of current products.

For Marswin Marketing, product innovation has a mean of 3.8 and a mode of 3. The respondents
remain neutral about the innovations related to the product in the company.

4.2.5 Behavioral Innovation

For Marswin Marketing, the mean score for the questions under behavioral innovation shows
a score of 3.53 and a mode of 4. Questions 25, 27 and 28 had a mean score response of agree.
Which means that the users agreed that they get a lot of support from managers if they try new

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ways of doing things. they are willing to try new ways of doing things and seek unusual, novel
solutions and in the company, everyone is encouraged to think and behave in original and novel
ways. On the other hand, question 26 had a mean score response of neutral which means that
the users feel neutral when asked if the company tolerate individuals who do things in a different
way. Lastly, question 45 also had a mean score response of neutral leaning towards agreeing.
This means that the users somewhat agree that the Employees' behavior depends on what the
company wants them to.

For Marswin Marketing, behavioral innovation shows that there is a mean of 4.15 and mode of
4. The customers agree that the company encourages its employees to be more autonomous in
making decisions, the company harbors employees that think creatively and think of innovative
ways in solving problems, the company allows the employees to do things uniquely and are free
to make their own decisions.

4.2.6 Strategic Innovation

For Marswin Marketing, the mean score for the questions under strategic innovation shows a
score of 3.76 and a mode of 4. All the questions had a mean score response of agreeing except for
number 33. Which means that the users agree that the firm's R&D or product development
resources are adequate to handle the development needs of new products and services, key
executives of the company are willing to take risks to seize and explore “chancy” growth
opportunities, senior executives constantly seek unusual, novel solutions to problems via the use
of “idea men” or someone who provides original ideas and they prioritize new way of doing things
rather than using old ways. On the other hand, Question 33 had a mean score response of neutral
but is leaning towards agree. Which means that the users somewhat agree that when they see new
ways of doing things, they are first at adopting them.

For Marswin Marketing, strategic innovation has a mean of 3.93 and a mode of 3. The
response shows neutral, however, it is leaning more on the agree side. The employees somehow
agree that strategic innovation takes place in the company and there are new resources being
utilized by the company.

CONCLUSION

Innovation has always been one of the main targets of businesses worldwide as it provides a
strong competitive advantage against their rivals. As seen in the review of related literature,
there are a number of studies that show that organizational slack leads to innovation. Slack has
often been viewed in a negative light but this study has revealed that its subsequent effect can
actually depend on the organization.

For every type of business, there appears to be an optimal MIS model that is being adopted
by each one of them. One has to always consider the type of industry, company size, and
financial capabilities. To date, many business establishments do not use MIS and this is
particularly true for micro and small enterprises. However, in the home garden industry, even

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small companies like Marswin Marketing have tried using MIS and have seen good results.

Based on the information gathered from interviews, it can be concluded that they have the
appropriate organizational capability to run the MIS. In terms of employees, no user is allowed
to operate the system unless they have received proper training and have exhibited their aptitude
in using the system. The MIS is also widely received in each organization because of how it
eases their workload. Feedback is also taken into consideration every time an update or upgrade
would be scheduled.

Despite the heavy initial investment needed for the MIS, the companies are still able to
maintain, manage, and operate the system. Investing in the MIS has also improved the
management of financial resources in the companies as it is easier for them to make decisions
with the system.

The Management Information System managed to bring about improvements to the business
processes of all the companies in terms of customer satisfaction, operational management, and
financial investment. The MIS also increased the motivation of the employees as it reduced the
burden of the workload. The customers are satisfied with the use of the information system.

The Management Information System is able to deliver maximum productivity since it


produced timely and accurate data. The information stored can easily be accessed and it has a
friendly interface. Thus, the users experienced minimal difficulty in using the information
system. The users only encountered minimal problems while using the system. Although the
training was a part of executing and using the system, the users had the appropriate skills in
using the system and the training was said to be useful. Moreover, the employees were able to
organize their work with the use of the system.

Relating to the aforementioned, the MIS has also significantly reduced the paper trail from
each company. It also made the companies become transparent internally because all
transactions are recorded, which means it can be reviewed by management any time they wish.
Their previous systems were not automated, so when looking for necessary documents, the
employees had to the storage room to manually find the necessary documents. It took time away
from their intended productive hours. Now, they save time because most information is just a
click away; this has also reduced discrepancies and mistakes caused by human error.

With growing companies such as the ones under study, data input is constantly increasing.
The MIS would need more processing power, and this entails additional investments in hardware
and software. As long as the company has enough financial resources to maintain and operate
the MIS, this will not be a problem.

After scouring through various literature and assessing the results of both surveys and
interviews, the researcher summarized the business practices that organizations in the home and
garden industry should try to follow in order to maximize their levels of innovation. The
managers (a) should have an active role in monitoring the system, (b) organizations should

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integrate their company policies into their reduce policy, (c) they should keep their hardware
and software updated, and (d) they should ensure that their system is always up-to-date. While
it isn't necessary to always match their software and hardware together, it would be better for
them to purchase software and hardware with an eye on the future so that any updates or changes
to the system would still be compatible to the one they have.

RECOMMENDATION

 Marswin Marketing

Although MMI already has decent innovation with a mode of 4.0 for almost all questions,
internal or external, to maximize innovation, it would be advisable for MMI to increase
investments in excess resources (e.g. resource buffers) as doing so will improve the company's
organizational innovation. Marswin Marketing Inc. should also consider building an IT team, as
they are currently dependent on the sole IT person Mr. Jason Figueroa. There may come a time
when he alone may not be enough to handle the technical problem/s so an additional staff member
to aid in system maintenance must be hired. Additionally, it would be advisable for the employees’
additional training in using the system since the employees are somewhat unsatisfied with the
current training they had. Doing so would increase their competence and satisfaction. the
employees should also be trained with even the basics of internet and computer security in order
to prevent cyber-attacks.

● Academe

There have been several studies arguing the influence of MIS, and whether it has a contribution
to innovation or not. Additionally, there is scant literature in the Philippine setting regarding these
topics. But after the gathering and analyzing of data for survey and interviews, there have been
new data and information that has come to light. This might further enrich the literature already
established regarding MIS and innovation models. It is recommended that the academe further
pursue studies along with these topics.

● Future Researchers

Future researchers must take into consideration the size of the company they are studying.
Big companies will have little to no time to entertain such extensive scholarly undertakings.
Future researchers must be patient with respondents and key informants since answering
interviews and surveys will interrupt their work. It is also encouraged that future researchers do
their best to improve the survey questionnaires as it was deemed too long by many respondents
under the study.

REFERENCES

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Bae, H., & Rhee, J. (2014). Organizational slack and technological innovation: The
moderating effect of environmental uncertainty. Asian journal of technology
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Burton. (2007). Survey research: Choice of the instrument, sample. Bloomberg:
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Creswell, J.W. (2009). Research design: Qualitative, quantitative, and mixed method
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Dehning, B., Dow, K. E., & Stratopoulos, T. (2004). Information technology and
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Geiger, S. W., & Cashen, L. H. (2002). A multidimensional examination of slack and
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Gunday, G., Ulusoy, G., Kilic, K., & Alpkan, L. (2011). Effects of innovation
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Heng, L., Ding X., Guo H., & Luo J. (2014). How does slack affect product innovation
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Rainier, R.K., & Turban, E. (2009). Introduction to an information system:
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Tan, J., & Peng, M. W. (2003). Organizational slack and firm performance during
economic transitions: Two studies from an emerging economy. Strategic
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Wang, C., & Ahmed, P. (2004). The development and validation of the organizational
innovativeness construct using confirmatory factor analysis. European journal
of innovation management, 7(4), 303-313.
Wonglimpiyarat, J. (2004). The use of strategies in managing technological innovation.
European journal of innovation management, 7(3), 229-250.
Zinn, J., & Flood, A.B. Slack resources in health care organizations: Fat to be
trimmed or muscle to be exercised? Health services research, 44(3), 812-
820. Retrieved from
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JGB 1257
Theory of Planned Behavior in Predicting Entrepreneurial
Intentions of Select DLSU Entrepreneurship Students

Abstract
Youth entrepreneurship is gaining an increasing focus because of the enormous potential
to contribute to economic growth and nation building. The focused of this study was to determine
the entrepreneurial intention of select DLSU Entrepreneur students using the Theory of Planned
Behavior of Ajzen. Entrepreneurial Behavior was the dependent variable, while Attitude toward
the behavior, Subjective norm, and Perceived Behavioral Control were the independent variable.
These variables were used to determine if there were any correlational effect to the
entrepreneurship intention and behavior of the student to pursue the action of starting the business
venture.
Target respondents were Entrepreneurship students of DLSU that were enrolled in business
plan writing course or have taken the course, previously. They were between the ages of 18-24
years old, both male and female, students both in Taft and Laguna Campus.
Research methodology performed was quantitative analysis through descriptive statistics
and regression, and used online, self-administered survey instrument utilizing Google Forms, sent
to select students of the Undergraduate Entrepreneurship Program in DLSU, targeting about 100
respondents.
Test results proved that there is a significant effect among all variables, Perceive
Behavioral Control, Subjective Norm and Attitudes, and Entrepreneurial Intention.

Key Words: Youth entrepreneurship, theory of planned behavior, entrepreneurial intention


and behavior.

Introduction
The youth entrepreneurial potential is enormous that different the sectors from the
government, industry, policymakers, and other stakeholders must pave the way to harness this
potential. The young generation venturing into entrepreneurship has become a key focus of several
kinds of research over the past decades on how it can help for economic development that is
inclusive and reduces poverty by providing job creation. The recognition of youth entrepreneurs
as having an important role in the economy has emerged. The role of the youth in entrepreneurship
is widely acknowledged as a driver of sustainable economic growth as entrepreneurs create new

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businesses, drive and shape innovation, speed up structural changes in the economy, and introduce
new competition – thereby contributing to productivity. Though, there is no universal definition
on entrepreneurship, quoting Licaros-Velasco Licaros-Velasco (Licaros-Velasco, et al., 2013),
“entrepreneurship is any attempt at new business or new venture creation, such as self-
employment, a new business organization, or an expansion of an existing business”. Which,
according to Jumamil, Depositario, Zapata (2017) citing Ramos (2014), that “entrepreneurship is
one of the drivers to the economic growth of the country,” and as young as 18 years, the youth
already venture into business. The youth, which comprised of age 15-24 years old, based on UN
definition, or in the Philippines, it is between the age of 15-30 years old (Gozun & Rivera, 2016).
There are several underlying factors for the youth to intend to be entrepreneurs. It is
influenced by both personal attributes and societal norms, which can have a positive or negative
effect on the individual if he maybe encourages or discourages to venture into business. To mention
some of this reasons, for business engagement are family income augmentation, where there might
be limited sources of income to finance the day to day expenses of the family; financing own
studies where individuals may want to pursue secondary or tertiary studies, and there might be
limited capabilities of the head of the family to help them sending to school. Another possible
reason will be in preparation for future expenditures. For whatever reason the youth may have for
their plans to venture in a business, there is the intention prior to the actual action.
In the GEM Report in 2015 on Youth Entrepreneurship, it was mentioned, that in the earlier
times, the youth were not encouraged to venture in business, and the reason for which was that
prior working experience was expected as essential prerequisite to succeed in the entrepreneurial
endeavor (GEM, 2015). The general notion was that one should have prior work exposure to
acquiring the essential entrepreneurial competencies that would eventually lead to becoming
entrepreneurs. Education was not enough to espouse the interest of the young to be entrepreneurs.
The study of certain academic subjects was expected to contribute to their learning to become
employees, or to be the successor of eventually running their family business. Though, with this
entrepreneurial intention of the young, most often than not, they are discouraged and feared to be
supported by the society, particularly their parents, older people, as well as lenders and investors
for lack of experiences. In recent transformation in society, together with the shifts in norms, social
values, and the revisions in institutions for entrepreneurship, the youth further developed their
interest and intention in entrepreneurship. From the same study, “Entrepreneurial interest is now
regarded as a mindset that can be instilled and nurtured through socialization and education, and
entrepreneurial competencies are considered learnable through instruction and training.” In the
study of Kvedaraite (2014), “the youth entrepreneurial involvement is also believed to enhance
their life chances and livelihood and to increase youth employment, security and stability in
society” (Kvedaraite, 2014). It was also mentioned that there are limited studies on youth
entrepreneurs, and most of the studies were focused on the acquisition of entrepreneurial
competencies, resources, and intentions. Citing Hoffman, et al. (2005) in the same GEM study,
“Young people, in general, have not acquired competencies such as self-efficacy, opportunity-
alertness, and risk-willingness through experience working in an enterprise. Rather, youth have
acquired competencies through socialization if parents are entrepreneurs, and through education”

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(Hoffmann et al., 2005). So much has been focused only on how the youth can acquire the
entrepreneurial interests through formal education and relative training, but there is no substantial
study of those youth that is not students or graduates, the young that are unemployed, that has
strong intention or desire as well to become entrepreneurs. There is a lack of the transitioning from
intention to actual venturing in business enterprises among the youth.
The importance of youth entrepreneurship on a global context as studied by the World
Bank, United Nations, International Labor Organization, and Youth Business International, is that
it creates youth employment, that will employ fellow youths as well. The youth are more
responsive to changes, economic opportunities, and trends. The younger generation with
entrepreneurial skills tends to be more productive individuals, more innovative, and often create
new forms of independent work. “The entrepreneurial experience and education help youth
develop new skills that can be applied to other challenges in life. Non-cognitive skills, such as
opportunity recognition, innovation, critical thinking, resilience, decision making, teamwork, and
leadership will benefit all youth whether or not they intend to become or continue as
entrepreneurs”, according to the World Bank (2008).
Entrepreneurial ideas and intentions forms and serves as the basis for which the strategic
mindset would initiate a new organization to commence. The entrepreneurs' states of mind that
direct attention, experience, and action toward a business concept, set the form and direction of
organizations at their inception (Bird, 1988). This is the same premise, why most students wanted
to be educated, to understand the methodological procedure of forming and starting a business
venture in a formal setting that is offered like in a higher educational institution.
Starting a business, which is a planned behavior and is intentional, can be best predicted
by intentions towards behavior (Kruegger & Carsrud, 1993). To determine entrepreneurial
intention, the Theory of Planned Behavior of Ajzen (1991; 2011), that determine the strength of
the intention and behavioral relationship of an individual was the most commonly used framework.
The basis of this study aims to contribute on how recommended actions for the academe
can create an enabling environment which young entrepreneurs can develop the entrepreneurial
attitudes and have access to mentors to further their capability in the field of doing business.
Guiding students to formally realized their intention through education, and what is the appropriate
way to deliver the course of business opportunity ideation and business planning, this research
aims to study the entrepreneurial intention of among select students of De La Salle University
undergraduate Entrepreneurship program utilizing Ajzens’ Theory of Planned Behavior.

Framework
Theory of planned behavior of Ajzen has been widely used especially in the field of social
psychology which is used to determine that certain behavior is pre-planned to prior its intention.
Intentions are important and critical to understanding other antecedents that lead to behavior
(Sheppard, et al., 1988, Ajzen and Fishbein 1980, Ajzen 1987). According to Kruegger and

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Carsrud (1993), entrepreneurial activities are represented by planned behavior, which is intentional
or pre-planned. These activities resulting from intentions serve as a catalyst towards the behavior
as predicted by other antecedents.
From the definition of entrepreneurship, this focuses on behavior rather than traits and views
entrepreneurship as “a set of behaviors and an entrepreneur is someone who undertakes these
behaviors”. A behavioral definition of youth entrepreneurship focuses on what an entrepreneur
does and how he or she does it, rather than identifying and classifying specific ‘entrepreneurial'
traits and qualities, avoiding the suggestion that entrepreneurs are born and not made (Schoof,
2006).
Based on the premise of effectively using TPB to measure entrepreneurial intention, this study
utilized Icek Ajzen’s Theory of Planned Behavior (1991) to determine the level of entrepreneurial
intention and behavior of students. In Ajzen’s Theory of Planned Behavior (1991), he recommends
a model where factors such as Attitude, Subjective Norm, and Perceived Behavioral Control
influences the behaviors and intentions of would-be entrepreneurs. Ajzen postulate that, "human
behavior is guided by three kinds of considerations: beliefs about the likely consequences of the
behavior (behavioral beliefs), beliefs about the normative expectations of others (normative
beliefs), and beliefs about the presence of factors that may facilitate or impede performance of the
behavior (control beliefs)". Behavioral beliefs lead to an attitude of behaviors, normative beliefs
results perceived social pressures, and control beliefs lead to perceived behavioral control. In the
combination of all three variables of attitude toward the behavior, subjective norm, and perception
of behavioral control will lead to the formation of a behavioral intention (Ajzen, 2013).
According to Ajzen (1980), “Attitude is a subjective assessment of the consequences of
people’s behavior and its influence on people, which determines whether people like or dislike
some particular behavior” (Ajzen & Fishbein, 1980).
Subjective norms refer to individuals’ perceptions that people who are important to them think
that these individuals should, or should not, perform a certain behavior (Ajzen & Fishbein, 1980).
Perceived behavioral control refers to the subjective understanding of the level of people's self-
control and the difficulty of engaging in the target behavior (Ajzen, 1991).
Prior exposure to the family business or organizational involvement can be a predictor of a
future behavior, which can affect behavioural intention (Ajzen, 2002). According to Carr and
Sequeira (2007) citing (e.g. Dyer and Handler, 1994; Katz, 1992), that “early exposure to
entrepreneurship and experience in the family business will affect the family member's attitude
and intentions towards entrepreneurial action."

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Figure 1 Conceptual Framework on Entrepreneurial Intention


Methodology
Research Locale
Respondents of this study were Entrepreneurship students of DLSU that were enrolled in
a business planning course or had taken the course already. That was a good basis since most of
the students were already in their seniors years in the program, aged 18-24 years old, both male
and female, enrolled in De La Salle University-Manila or Laguna Campuses.
Research Design
Research methodology performed quantitative analysis through descriptive and causal
statistics. The instrument will be distributed to the respondents using online, self-administered
survey utilizing Google Forms. The online survey questionnaires were sent to select students of
the Undergraduate Entrepreneurship Program in De La Salle University, targeting about 100
respondents from both Manila and Laguna campuses.
Sampling Design
Respondents of this study were individuals, between the age of 18-24 years old, both male
and female, and should be entrepreneurship students of De La Salle University-Manila and Laguna
campuses that are currently enrolled in business planning course or has taken the course already.
This study targets at least 100 student respondents. The population size of enrolled students that
are currently taking and has taken business planning course is 140. Given this population and using
the Slovin’s formula with a confidence level of 95%, the estimated sample size is 103.
Research Instrument
Research instrument for the Theory of Planned Behavior comprised of four dimensions of
attitudes towards entrepreneurship, subjective norms, planned behavioral control, and
entrepreneurial intention. This was adapted from the Entrepreneurial Intentions Questions (EIQ)
of Linan and Chen (2009), following Ajzez’s Theory of Planned Behavior recommendation on the
construction of questionnaire on planned behavior (Ajzen, 2006, 2013). The instrument has twenty

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items, and was group into four sections covering attitude, subjective norm, planned behavior
control, and entrepreneurial intentions.
The instrument measurement is in Likert Scale of 1 to 5, where 1 - is strongly disagree, 2
- is disagree, 3 - is neutral, 4 - is agree, and 5 - is strongly agree.
Demographics of the respondents were also asked; including the age of the respondents, their
gender, if they had prior business exposure whether from their family or if they had started a
business venture, and if they belong currently or previously to any student organizational
membership.

Discussion of Results
Descriptive Analysis

The table below illustrates the demographics of the respondents of the survey from select
DLSU Entrepreneurship students. Age is a continuous variable, while gender is categorical, and
the same for own a business, the family owns a business, and membership in a student
organization.
There were 107 respondents in the survey, of which 57.01% or 61are Male, and 42.99%
or 46 are Female. Their ages range from 18 to 23 years old with a mean age of 20.03 years. Age
20 years has the most respondents with 39.25% or 42 out of 107 respondents.
From the respondents of 107, there is 42.06% that already has their own business; and
79.44% of the respondents have parents that own business. 90 out of 107 of the respondents, or
84.11% of them are, as well as members of a student organization in the university.
Table 1. Frequency Results of Demographics
Code Frequency Percentage
N = 107

Age
18 1 0.93%
19 33 30.84%
20 42 39.25%
21 25 23.36%
22 5 4.67%
23 1 0.93%
Gender
Female 1 61 57.01%
Male 2 46 42.99%
Owns Business
No 0 62 57.94%
Yes 1 45 42.06%

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Family Owns Business
No 0 22 20.56%
Yes 1 85 79.44%
Member in
Organization
No 0 17 15.89%
Yes 1 90 84.11%

Causal Analysis

A causal analysis through linear regression and multiple regression was performed to test
the hypothesis of the study. The confidence interval of 95% was used, and models with a p-value
below .05 shall have the null hypothesis to be rejected, and the alternate hypothesis will be
accepted; and for p-value that exceeds .05, the alternative hypothesis will be rejected, and the null
hypothesis will be accepted.

Table 2. Results of regression analysis of the variables

t-value df p-value cor mean


Entrepreneurial Intention 4.46
Attitude 11.776 105 0.00 0.75 4.54
Subjective Norm 4.3183 105 0.00 0.39 4.66
Perceived Behavioral
0.34
Control 3.7554 105 0.00 3.74
Age 0.954 105 0.33 0.09
Gender 6.056 105 0.02 -0.23
Owns Business 0.2774 105 0.60 -0.05
Parents Own Business 0.3677 105 0.55 -0.06
Membership 0.2779 105 0.60 -0.05
Attitude, Perceived
Behavioral Control, and
Subjective Norms 46.78 103 0.00

A linear regression analysis was used to test if attitude significantly effects entrepreneurial
intentions. The result of the regression indicated that the predictor explained
H01: Attitude has no significant relationship to the entrepreneurial intention of students.

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Ha1: Attitude has a significant relationship to entrepreneurial intention of students.
A linear regression analysis was used to test Attitude significantly predicted
Entrepreneurial Intentions. The results of the regression indicated that the predictor explained
56.5% of the variance (R² = .569, F(1,105) = 138.7, p < .001). It was found that Attitude
significantly predicted Entrepreneurial Intentions (ß=.97, p < .001).
Attitude and Entrepreneurial Intention were strong positively linear correlated, r(105) = .75
and were significant (p < .001).
The variable Attitude has a mean of 4.54, which was measured using 5-point Likert scale,
with higher the score, the higher the attitude towards the entrepreneurial intention. Meaning that
of the questions of being an entrepreneur from the point of self, They are convinced that they
wanted to start a business venture. From the majority of the respondents, they see themselves of
highly interested in starting a business.
Attitude on Entrepreneurial Intention is significant, and has a strong relationship and
positive effect, and was strong positively linear correlated with .75
For Hypothesis 1, the alternative hypothesis will be accepted.

H02: Subjective norm no has a significant relationship to entrepreneurial intention of


students.
Ha2: Subjective norm has a significant relationship to entrepreneurial intention of students.
A linear regression analysis was used to test Subjective Norm significantly predicted
Entrepreneurial Intentions. The results of the regression indicated that the predictor explained 14%
of the variance (R² = .150, F(1,105) = 18.65, p < .001). It was found that the Subjective Norm
significantly predicted Entrepreneurial Intentions (ß=.47, p < .001).
Perceived Behavioral Control and Entrepreneurial Intention were low positively correlated,
r(105) = .34 and were significant (p < .001).
Subjective norm mean is 4.66. Majority of the respondents perceive themselves of having
strong intention and seriousness of venturing into business. Perception as from family, friends and
other people if they see the respondents of being and entrepreneur. Since the majority has exposure
in businesses through their parent's enterprises, and some of them (42%) already have their own
business. This might be a factor that contributes to the approval of others to their business venture.
Subjective Norm on Entrepreneurial Intention is significant, and has a positive relationship
and positive effect, and was low positively correlated.
For Hypothesis 2, the alternative will be accepted.

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H03: Perceive behavioral control has no significant relationship to the entrepreneurial
intention of students.
Ha3: Perceive behavioral control has a significant relationship to entrepreneurial intention
of students.
A linear regression analysis was used to test Personal Behavior Control significantly
predicted Entrepreneurial Intentions. The results of the regression indicated that the predictor
explained 11% of the variance (R² = .118, F(1,105) = 14.1, p < .001). It was found that Personal
Behavior Control significantly predicted Entrepreneurial Intentions (ß=.32, p < .001).
Subjective Norm and Entrepreneurial Intention were low positively correlated, r(105) = .39
and were significant (p < .001).
Perceive Behavioral control mean is 3.74. Majority of the respondents see themselves as
capable of starting and running a business venture. Though it is relatively low among all the
variables, and moderately significant, the respondents see themselves of moderately capable or
effective of carrying out business management in general. Majority of the respondents view the
feasibility of a new business as moderate, as well. The respondents see that perceived behavioral
control has less impact on the entrepreneurial intention, this might be attributed to limited access
to certain resources.
Perceived Behavioral Control on Entrepreneurial Intention is significant, and has a positive
relationship and positive effect, and was low positively correlated.
For Hypothesis 3, the alternative will be accepted.

H04: Attitude, subjective norm, and perceived behavioral control have no significant
relationship on entrepreneurial intention.
Ha4: Attitude, subjective norm, and perceived behavioral control has a significant
relationship on entrepreneurial intention.
A multiple linear regression analysis was used to test whether Attitude, Subjective Norm,
and Perceived Behavior Control significantly predicted Entrepreneurial Intentions. The results of
the regression indicated that the predictor explained 56.4% of the variance (R² = .577, F(3,103) =
46.78, p < .001). It was found that Attitude significantly predicted Entrepreneurial Intentions
(ß=.91, p < .001); while Subjective Norm did not significantly predict Entrepreneurial Intentions
(ß=.029, p < .746); and Perceived Behavioral Control did not significantly predict Entrepreneurial
Intentions (ß=.086, p < .179).
Entrepreneurial Intention means is 4.46, which is high. Majority of the student respondents
agree that they find themselves of being an entrepreneur. Attitude, Perceived Behavioral Control,
and Subjective Norm on Entrepreneurial Intention are all significant, and has a positive
relationship and positive effect.

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For Hypothesis 4, the alternative will be accepted.

H05: Demographics of Age, Gender, Owns business, Family owns a business, and
membership in students organizations has no significant relationship to Entrepreneurial intentions.
Ha5: Demographics of Age, Gender, Owns business, Family owns a business, and
membership in students organizations has significant relationship to Entrepreneurial intentions.
A multiple linear regression analysis was used to whether test Age, Gender, Owns a
business, parents own business, and member of student organization did not significantly predict
Entrepreneurial Intentions. The results of the regression indicated that the predictor explained
1.2% of the variance (R² = .059, F(5,101) = 1.261, p < .287). It was found that Age did not
significantly predicted Entrepreneurial Intentions (ß=.03, p < .708); while Gender did significantly
predicted Entrepreneurial Intentions (ß=-.32, p < .028); Own a business did not significantly
predicted Entrepreneurial Intentions (ß=.040, p < .760) ; Parents own a business did not
significantly predicted Entrepreneurial Intentions (ß=-.025, p < .875); and Membership in student
organizations did not significantly predicted Entrepreneurial Intentions (ß=.087, p < .638).
Of all the constructs of demographics, they resulted in having a no linear correlation to
Entrepreneurial intention, meaning that demographics do not have any effect and relationship to
the dependent variable. Age is the only construct the is significant.
For Hypothesis 5, the alternative will be rejected.

Conclusions
The results have shown that there is a significant effect of attitude, perceived behavioral
control, and subjective norm to the entrepreneurial intentions of select DLSU students. All
variables except for perceived behavioral control scored lowest in terms of means. This means that
most students are still adamant of their capabilities of starting a business venture. Even that
majority of them were exposed to businesses; they are still reluctant if they can successfully start
and manage their enterprises. Though, factors of prior entrepreneurial exposure can contribute.
To address this, implications on the entrepreneurship education can be addressed on building
knowledge of young entrepreneurs. There should be more focus on building knowledge of young
and aspiring entrepreneurs, that they may develop necessary skills for the purpose of
entrepreneurship. Entrepreneurial Training will be another avenue to focus on aside from the
knowledge and skills building, and there should be necessary and appropriate preparation to staring
and operating an enterprise with greater emphasis on integrating both entrepreneurship education
and training (GEM 2010a) to be relevant to global businesses.
Implications on academic institutions, administration of academic institutions, including
DLSU, can make the entrepreneurship education relevant to the current global need of the students

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where most millennials are focused on technology-based services. Fully understanding and
utilizing social media to aide academic institutions play a big role in honing youth entrepreneurs.
Social media is utilized for the majority of product and services placement, and since it used to
influence the youth where marketing activities are heavily channeled. Another factor for academic
institutions, it can give emphasis especially through immersion and understanding the problems of
running a business which most young entrepreneurs lack skills. Making a suitable program,
courses, and workshops might mitigate the feeling of not being prepared and in control. Another
will be to consider entrepreneurship courses that will be taught to Senior High School level, where
similarities in the implementations of business simulations should have a clear differentiation of
activities that will be undertaken.
For the students, youth entrepreneurship can offer an innovative alternative for economic
growth for young people. By making young entrepreneurs realize that even though they are really
keen on establishing an enterprise, they must also understand all facets of starting and operating a
business venture. However, as we continue to develop appropriate business models that youth
entrepreneurship will adapt, we will need to provide evidence to identify best practices and
recommendation programs for the youth that they will be interested in replicating or model. We
can benchmark business models from global enterprises.
On the global context, entrepreneurs from developing countries tend to focus more on the
necessities where there is a lack of alternatives to products and services compared to developed
countries, where entrepreneurs are attracted to sectors and industries where there are perceived
opportunities to venture. We could encourage youth to identify their roles as entrepreneurs to help
in providing alternatives to drive the economic conditions or further contribute to economic growth
by employing low-skilled employees. By showcasing the role of international policy makers in
partnership with regional associations and countries, we can continue to support the efforts of the
United Nations, World Bank, and International Labor Organization that forged partnerships to
form Youth Employment Network to find new policy and program solutions to address global
youth unemployment with four priority focus - employability, equal opportunities,
entrepreneurship and employment creation (known as the “four Es”) (Schoof, 2006). This can be
a good motivator to encourage global youth to make entrepreneurship a viable path to inclusion
and sustainability.
Limitations and Recommendations for future research

To further strengthen the role of the academe in stimulating entrepreneurship, instituting


learning to the youth by coming up with relevant entrepreneurship education design, future
researchers can look into the following:
Future researches can further explore the changing behavior of the youth entrepreneurs,
their influence brought by technology, social media, and globalization, and how will this affect
their intention leading to behavior to start a business enterprise.

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Future researches can also look into the actual behavioral aspects of business start-up be
cross-referencing it to prior and perceived data gathered where researchers can gain insights as to
whether the intentions greatly affects actual behaviors (Carr & Sequeira, 2007). This can provide
information if perceptions of would be entrepreneurs match their behaviors when they become
actual entrepreneurs. This can help on how institutions and policy-makers can create relevant
policies and programs to entice youth entrepreneurs.
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JGB 1205
The Impact of Economic, Environmental, and Social Dimensions, of
Sustainability Reporting on Profitability, Liquidity, and Solvency of
Selected ASEAN Real Estate and Construction Companies
Julia Mari Gumiran, Jason Robert Mendoza,
Kim Kathlyn Pua, Odlanyer Ramirez,
and Dr. Marivic Manalo
De La Salle University, Manila
julia_gumiran@dlsu.edu.ph
jason_mendoza@dlsu.edu.ph
kim_pua@dlsu.edu.ph
odlanyer_ramirez@dlsu.edu.ph
marivic.manalo@dlus.edu.ph

Abstract
Sustainability reporting, which is considered as a form of corporate social responsibility, has
been an increasing and crucial concern for all enterprises throughout time. It is of great concern
for both management and stakeholders since it influences their individual business decisions and
financial growth. Furthermore, an increasing number of Asian countries are now taking their
actions and extra efforts in practicing sustainability reporting in accordance with their respective
local regulations, along with the adoption of prominent global standards such as sustainability
reporting guidelines established by Global Reporting Initiative (GRI). Of all sectors, Real Estate
and Construction industry are barely following this trend. In line with previous studies, this
research examined the extensiveness of sustainability reporting in terms of its economic,
environmental, and social dimensions and its impact on the profitability, liquidity, and solvency
of corporations. The researchers have conducted content analysis and panel regression
methodology among 19 Real Estate and Construction companies from selected ASEAN countries
(Indonesia, Malaysia, Philippines, Singapore, and Thailand) from 2013 to 2016. Results of the
study revealed that the society and product responsibility categories of social dimensions of
sustainability reporting have a significant impact on liquidity and profitability respectively.
Likewise, the research also indicated that product responsibility categories of social dimensions
are significant predictors of solvency. On the other hand, the economic and environmental
dimensions of sustainability reporting are found to have no significant relationship with the three
indicators of financial performance. Finally, the results of this study determined that firm size has
a significant effect on liquidity.
Keywords: Sustainability Reporting; ASEAN Real Estate & Construction; GRI

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JGB 1216
The Impact of Perceptions of Corporate Social Responsibility and
the Existence of Labor Contractualization on Job Satisfaction of
Employees in Selected Companies in the Food and Beverage
Industry in Metro Manila

Carlo Miguel Isip, Mariklaire Manalastas,


Jason Cyruz Polloso, Franchesca Reisde, and Jerwin Tubay
De La Salle University, Manila
carlo_isip@dlsu.edu.ph
mariklaire_manalastas@dlsu.edu.ph
jason_polloso@dlsu.edu.ph
franchesca_reside@dlsu.edu.ph
jerwin.tubay@dlsu.edu.ph

Abstract
The main objective of this paper is to determine whether the perception of Corporate Social
Responsibility (CSR) and the existence of labor contractualization has a significant effect on the
job satisfaction of employees. The respondents were chosen from the top 4 food and beverage
companies in the list provided by the Department of Labor and Employment which believed
engaging in labor contractualization practices in the Philippines. The impact was tested using
binary logistic regression and the results showed that CSR has a positive and significant effect on
job satisfaction while labor contractualization has a negative and significant effect.Also, when the
employee status is contractual (not regular), the lower the job satisfaction would be. The prior
literature has examined the effect of CSR or contractualization on job satisfaction separately and
not together. Surprisingly, the results are still consistent when taken together.

Keywords: CSR, Labor Contractualization, Job Satisfaction

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JGB 1232
The Sustainability Factor of Telecommuting as an Employee Benefit
Used as a Business Management Strategy

Jean Orillos
De La Salle University, Manila
jean_orillos@dlsu.edu.ph

Abstract
With the recent passage of the “Telecommuting Act” (Republic Act 11165) in the Philippines,
many HR departments will be developing their own policies as this management strategy is
adapted into the mainstream workforce. Studies have shown that telecommuting is a sustainable
travel-demand management strategy that helps in retaining and attracting employees.
Telecommuting is already current practice in some companies in the Philippines especially those
that serve an international clientele. In many instances, telecommuting is usually part of an
employee’s work arrangement with his or her employer. In contrast, there are companies that offer
telecommuting or work from home as an employee benefit rather than a fixed work arrangement.
This study aims to evaluate if telecommuting as an employee benefit is an effective sustainable
business management strategy in relevant industries. A survey was conducted amongst team
leaders and employees of a small and medium enterprise who availed of the telecommuting
program. The content of the survey was based on the interview with the general manager as well
as variables related to telecommuting such the right reason, the right job, and the right people. The
results of the survey indicate that telecommuting is positively received by the employees and is
beneficial to them and the company. It is also notable that productivity and work motivation related
to telecommuting is not the only deciding factors for the sustainability of the program. But in terms
of its effectiveness of increasing employee morale through work from home arrangement,
telecommuting can be regarded as sustainable as a benefit to employees and as a business
management strategy. In relation to the findings, the implications of telecommuting to the global
business were also discussed. Lastly, the study also explored several limitations and
recommendations for further study.

Keywords: telecommuting, sustainable, management strategy, work arrangement

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JGB 1235
Utilization of Application Software in the Implementation of
Sustainable Customer Loyalty Program

Lovielyn Krystel Asinas


De La Salle University, Manila
lovielyn_asinas@dlsu.edu.ph

Abstract
The purpose of this study is to develop an efficient and effective loyalty program that would be
adopted by the customers driving them further towards the brand. The common problems
encountered by existing loyalty programs are how long these would last and the degree of impact
these would bring to the consumers. With the emerging technology, the rise of social media and
the shift towards digital marketing, the digital platform is a proficient tool to create sustainable
customer loyalty programs. This paper would focus on retail sales and marketing rather than its
corporate counterpart. It aims to create innovative application software that would connect the
consumers to the brand and result to repeat business in the long term. It would discuss the content
of the application such as promotions and discounts offered exclusively to its members, customer
feedback section to ensure their continuous satisfaction, and the incentives program which enables
consumers to earn points for every purchase and convert these into rewards. There would be
membership status - bronze, silver, gold - according to the accumulated points which would entice
customers to patronize the products and establish loyalty to the brand. To ensure that customers
would be unceasingly inclined to be part of the program, this study would incorporate the multi-
stream approach in marketing. This means that the design and strategy to be used would give
emphasis on people and the environment. By integrating a feature in the application that would
enable customers to be involved in corporate social responsibilities and simultaneously raise
awareness on social enterprises, they would be keen on contributing and supporting the brand for
certain causes. As an example, for every purchase, there would be an equivalent value that could
either be donated or used to boost sustainable development activities. The role of this program is
key in creating an active community that would build a stronghold to sustain the loyalty of its
members.

Keywords: Sustainable Customer Loyalty Program, Innovative marketing, Application


Software, Rewards Program, Corporate Social Responsibilities

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