Strategic Development Framework for Strengthening Small Retail Competitiveness in a Provincial Philippine Economy

Abstract

Strategic management practices are important mechanisms through which small retailers strengthen competitiveness in resource-constrained and highly localized markets. This study examined the relationship between strategic management practices and competitive advantage among small retailers in a provincial Philippine economy, particularly in Nueva Ecija. Specifically, it assessed the level of strategic management practices in terms of environmental scanning, strategy formulation, strategy implementation, and strategy evaluation, and determined the level of competitive advantage in terms of cost efficiency, differentiation, market responsiveness, and digital integration. The study employed a quantitative descriptive-correlational design using survey data from 150 small retail business owners and managers. Findings show that small retailers demonstrated a high level of strategic management practices, with strategy formulation receiving the highest rating and strategy evaluation receiving the lowest. The respondents also exhibited a high level of competitive advantage, particularly in differentiation through customer relationships and service quality, while digital integration remained the weakest area. Correlation analysis revealed a significant positive relationship between strategic management practices and competitive advantage, indicating that retailers with stronger strategic routines tend to achieve better competitive positioning. The study further identified working capital constraints, competition from large retailers, managerial skill gaps, and unstable supply costs as key barriers to strategic execution. Overall, the findings suggest that strategic management practices are practical tools for strengthening small retail competitiveness in provincial markets. The study offers implications for small business owners, local government units, and business support institutions in designing capacity-building programs focused on strategy evaluation, digital adoption, financial management, and managerial development.