Innovation Dynamics and Business Growth in Philippines’ Micro, Small, and Medium-Sized Enterprise Bakeries: The Moderating Role of Entrepreneurial Experience in Product and Process Innovations

Jupert Jasser Abellana; Joey Marie f. Jegonia; Albert A. Alonzo

doi:10.32479/irmm.23250

Authors

Jupert Jasser Abellana Department of Business and Innovation, College of Economics, Business and Accountancy, Mindanao State University - Iligan Institute of Technology, Iligan City, Philippines; & School of Business and Management, Xavier University-Ateneo de Cagayan, Cagayan de Oro City, Philippines,
Joey Marie f. Jegonia Department of Psychology, College of Arts and Sciences, Xavier University - Ateneo de Cagayan, Cagayan de Oro City, Philippines,
Albert A. Alonzo Department of Accountancy and Business Management, College of Business and Information Technology, Mindanao State University at Naawan, Naawan, Misamis Oriental, Philippines.

DOI:

https://doi.org/10.32479/irmm.23250

Keywords:

Business Growth, Entrepreneurial Experience, Product Innovation, Process Innovation, Micro, Small, and Medium-Sized Enterprises

Abstract

This study examines how process and product innovation drive business growth in MSME bakeries, with entrepreneurial experience as a moderating factor. Data from 227 respondents, analyzed using PLS-SEM, shows that process innovation improves efficiency, reduces costs, and boosts productivity, contributing to business growth. Product innovation also enhances growth by helping businesses adapt to consumer preferences and differentiate offerings. Entrepreneurial experience strengthens the link between process innovation and growth indicating that industry expertise enhances operational improvements. However, its effect on product innovation is insignificant, which suggests that other market factors play a greater role. MSME bakeries must invest in automation and workflow optimization to improve efficiency and conduct market research to align products with consumer trends such as health and sustainability. Business owners enhance innovation strategies through continuous learning via mentorship and industry networks. Policymakers provide support through financial aid and technical training. Future research explores factors such as digital transformation and technological adaptation to develop a better understanding of how innovation drives business growth.