Management Practices of Entrepreneurs Under One-Town One Product Projects in Camarines Norte

 Management Practices of Entrepreneurs Under One-Town One Product Projects in Camarines Norte

Gerry B. Dacer, Gehana D. Lamug

Camarines Norte State College

DOI: https://dx.doi.org/10.47772/IJRISS.2025.914MG0031

Received: 08 February 2025; Accepted: 14 February 2025; Published: 17 March 2025

ABSTRACT

This study aimed to obtain data regarding the management practices of One-Town-One-Product entrepreneurs in Camarines Norte. The study used the descriptive-correlational method and survey questionnaire in data gathering with 70 respondents. Frequency distribution, percentage ranking, weighted mean, and Somer’s d were utilized.

The findings are as follows: 1) Most respondents were 25 to 34 and 45 to 54 years old, female, married, college graduates, attended one to three seminars/trainings, and have one to three organization memberships; 2) OTOP entrepreneurs implemented management practices; 3) There is no significant relationship between age profile of respondents and management practices along planning, directing, and controlling, but has a weak negative relationship in organizing practices. There is also no significant relationship between sex and civil status profile and the variables. Educational attainment has a moderate positive relationship with planning, organizing, and controlling but has a weak positive relationship with directing. The number of business-related seminars attended has a weak positive relationship with planning, organizing, and controlling but has a moderate positive relationship with directing. The number of memberships to organizations has no significant relationship with planning, directing, and controlling but has a strong positive relationship with organizing; 4) The problem encountered was the price increase of raw materials; and 5) The proposed business model was designed to improve the management practices of OTOP entrepreneurs in Camarines Norte.

The entrepreneurs may adapt the business model by applying the Gerrynism Philosophy which includes formulating, arranging, leading, and monitoring the management process.

Keywords: Management practices, planning, organizing, directing, controlling

INTRODUCTION

In the world of business industry, International Production and Operations Management (IPOM) plays a significant role in providing products and services in markets and communities. This includes the management process wherein the labor and capital, local production market, and international customer requirements should be considered. The local entrepreneurs were already aware of the foundation of the IPOM. However, for an organization, some aspects make international exposure challenging. First, the environment of international business, both economics and international standards, should be sustained. Second, international stint makes an enterprise more mindful of its environment and because of this, it becomes competitive. Since IPOM is dynamic, the strategic objectives of an organization should consider some points such as meeting international quality standards, forecasting demand and production design, profitability, minimum production cost, and adaptation to modern available technology (Juneja, 2012).

Undeniably, competition in enterprises and businesses is evident locally and internationally. Therefore, production and operations management should be developed and enhanced for an enterprise to survive. Since innovations in technology and systems are evident, there are more opportunities for the development of the production department compared to other areas like finance and marketing. A more systematic approach would be advantageous for Small and Medium-Sized Manufacturers (SMEs) wherein the production planning includes estimating the needed capacity, planning the production layout, and setting up the facility. Indeed, to cope with the competition of enterprises within and across countries, production and operations management should be effective. It should be modernized, improved, and organized well (Anlacan, 2012).

In line with this, production management pertains to the practical application of management principles to the production function in an enterprise (Chand, 2014). It includes the application of planning, organizing, directing, and controlling the production process. In an establishment, it is noticeable that one cannot identify the beginning and end points of production management since it is connected to other functional areas of business.

The application of management principles to the production function is the impact of three developments such as the development of factory system of production, the development of a large corporation with various owners and the need to hire people to operate the enterprise, and its connection to other works of developers of scientific management who were able to demonstrate the value of the strategies and techniques being developed.

Moreover, management practices serve as the working methods and innovations utilized by managers in making the organization more efficient (Luenendonk, 2017). There are various ways to implement good management practices such as having economic incentives for everyone, giving regular and meaningful feedback, considering employees as individuals, training employees and supporting them, acknowledging the employees’ emotions, keeping up with new technologies, and having good leadership.

This study was conducted pursuant to Executive Order No.176, s. 2003 through the “Isang Bayan, Isang Produkto, Isang Milyong Piso Program” which intends to stimulate local economic activity and the growth of SMEs, generate jobs, develop the countryside, and sustain the anti-poverty thrust of the government. This emphasizes that OTOP will be of great help to empower local economies and provide more livelihood opportunities in rural areas.

Additionally, entrepreneurs who supervise teams commonly face several challenges related to management, productivity, and communication. Knowing how to recognize these challenges and address them helps increase a manager’s confidence and ability to lead a team. The following are the challenges that managers face nowadays, especially in production management: 1) decreased performance levels, 2) being understaffed, 3) lack of communication, 4) poor teamwork, 5) time management, 6) inadequate support, and 7) weak workplace culture (Indeed Editorial Team, 2021).

Regional development programs typically seek to rejuvenate the local economies. There can be either external or internal factors that drive growth. The national government released a comprehensive medium-term Philippine Development Plan targeting reducing poverty and job creation in 2012. The scheme also supports and encourages small and micro businesses through initiatives such as SULONG and the One Town One Product (OTOP) program. OTOP Philippines is an assistance for small businesses in the region to produce and sell innovative goods by using indigenous materials and craftsmanship. OTOP began in the Philippines in 2004 following the popularity of One Village One Product campaign by former Governor Morihiko Hiramatsu. The OTOP highlights the main concepts of regional pride, rediscovery of indigenous goods, entrepreneurship, and public-private collaboration.

The Department of Trade and Industry – Camarines Norte Provincial Office opened its new Business Hub Flora Queen Pasalubong Exchange. It is the first OTOP (One Town, One Product) Philippines Hub in the province of Camarines Norte. It is a store where most of the MSMEs in the province can display and present their product in the market. Now that the economy is ever-changing and businesses become competitive locally and globally, production management practices should be identified and assessed to be improved and more effective.

Currently, there are nine OTOP projects existing in Camarines Norte such as 1) piña fiber in Labo town; 2) pineapple food and beverage in Basud; 3) Processed marine products in Mercedes; (4) pineapple and pili-based products in Daet; 5) processed dairy products in Talisay; 6) flour-based products in Vinzons; 7) dalanghita nectar in Sta. Elena; 8) fine jewelries in Paracale and Jose Panganiban

Due to the COVID -19 pandemic and other unexpected circumstances such as increased competition, technological advancement and, entry of the giant stores that resulted in low sales, among others, these OTOP projects have experienced many challenges. Because of this, the researcher chose to study the management practices of entrepreneurs under OTOP projects in Camarines Norte.

Furthermore, this study sought to find out the management practices in relation to the causes of failures in engaging business which can help all businessmen to achieve a successful business. This research was conducted as the researcher believed that this would serve as an aid to reconcile those circumstances in engaging businesses, especially when it comes to the production management practices of the business.

Objectives

This study aimed to assess the management practices of entrepreneurs under the OTOP projects in Camarines Norte.

Specifically, it sought answers to the following questions:

1. What is the profile of the entrepreneurs under OTOP projects in terms of:

1.1. age;

1.2. sex;

1.3. civil status;

1.4. educational attainment;

1.5. seminars/trainings attended; and

1.6. number of business-related membership in organizations?

2. What are the management practices of the entrepreneurs under OTOP projects in terms of:

2.1 planning;

2.2 organizing;

2.3 directing; and

2.4 controlling?

3. Is there a significant relationship between the profile of the entrepreneurs and their management practices?
4. What are the problems encountered by the entrepreneurs under OTOP projects in relation to their management practices?
5. What philosophy and business model may be proposed in terms of production and management practices based on the findings of the study?

Related Literature

Management is a process wherein the managers engage in some interrelated functions in order to attain their desired goals (iEduNote, 2021). It has four basic functions such as planning, organizing, leading, and controlling. These functions are performed by managers to accomplish the business goals effectively and efficiently. Such functions are highly inseparable and overlapping in nature since each function blends and affects one another.

In line with this, in the article entitled Principles of Management which was published by Lumen (n.d.), the four functions were termed as the P.O.L.C. Framework. Planning was defined as the function of management that involves setting objectives and determining a course of action for achieving these objectives. In the planning, the managers should be aware of the environmental conditions experienced by their organization and forecast future conditions. Also, the managers are required to be good decision makers.

 There are three different types of planning such as strategic, tactical, and operational. Strategic planning includes analyzing competitive opportunities and threats, the strengths and weaknesses of an organization, and determining how to position the organization in order to effectively compete in the environment. Tactical planning is designed to improve the relatively specific means for the implementation of the strategic plan. Operational planning involves the steps to achieve the goals and objectives of an organization (University of Minnesota Libraries Publishing, 2015).

In addition, Lloyd and Aho (2020) defined planning as the systematic process of making decisions regarding goals and activities the organization will pursue. In fact, they emphasized that the first step in managing is planning. It was discussed that planning is the point in a manager’s day that they step away from their desk in order to think. Through planning, managers are able to establish a game plan, a mission to guide the organization, and goals to focus on.

On the other hand, organizing is the process of arranging and distributing the planned work, authority, and resources to the members of the organization to achieve its goals in order to achieve the goals of the business. In this function, the manager considers the resources and physical facilities available to maximize returns with minimum expenditure. Organizing includes creating the organizational structure, making organizational designs decisions, and making jobs design decisions (TutorialsPoint, n.d.)

Also, Satyendra (2015) highlighted organizing as the process of establishing orderly utilization of the resources within the management system of the organization. In this function, the management gives focus on the synchronization and combination of human, physical, financial, and even information resources towards the achievement of the management’s success. It was pointed out that organizing is the next important function of management after the planning since it involves deciding on ways and means of the achievement of what is planned.

In terms of leading, Pratap (2021) stated that managers must be effective leaders in order to inspire the workers to perform their tasks successfully.  It was pointed out that business managers need to think and act like leaders wherein they should motivate their subordinates to exert efforts so that the tasks will be accomplished during the required time frame. Leading also involves communicating priorities in the manner that the organization can respond faster.

Moreover, Haque (2020) stated that in leading, the manager spends time connecting with the employees in order for them to work harmoniously in the organization. It includes leadership skills such as communicating, motivating, influencing, and inspiring employees for effective and efficient output. After all, managers are not leaders, but all leaders are managers. Leading plays an important role in business management in order to maximize efficiency and to achieve the organizational goals and objectives of the business or industry.

The fourth and last function of management is controlling. According to Bauer et al. (2018), it includes ensuring that performance does not deviate from standards and must follow the specific quality standard of both the services and products. It consists of three steps such as establishing performance standards, comparing actual performance against standards, and taking corrective action when necessary. Controlling does not mean manipulating the workers but instead, it refers to the role of managers to take necessary actions to make sure that the tasks and activities of the workers are consistent which contributes to the accomplishment of the objectives of the organization.

Similarly, iEduNote (2019) highlighted controlling as the process of ensuring that actual activities conform to planned activities. It is closely related to planning but is more pervasive since it helps managers to monitor the effectiveness of their planning, organizing, and leading activities. It determines what is being accomplished and evaluates performance. Therefore, controlling is significant in order for the managers to monitor changes of its effects on the progress of the organization.

In the book entitled Improvement Rural Living Condition Through One Village One Product Movement which was written by Dipta (2014), OVOP enhances the proudness of the local community in their village. Due to its approaches in transforming local products into competitive products in local, national, and global market, OVOP became one of the successful regional economic programs. It started in Japan, but other countries were inspired to adopt and adapt such movement into their own models of economic development, especially in village areas. The concept and implementation of this program were discussed including the different countries such as Japan, Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Thailand, and Vietnam which belong to the Associations of Southeast Asian Nations (ASEAN).

According to Son (2010), the OVOP project started with the pioneering efforts of Oyama Town. The region’s governor at that time, Morihiko Hiramatsu was the one expanded this movement by establishing schools as venues in order to train local leaders wherein they were taught about community development. Three principles have emerged during the training at the schools. First is developing new products and sales channels that are local yet global. Second, the members of the local community should be able to choose the special product of their village and the strategy on how to enhance it with the use of self-reliance and creativity. Third, human resources development is the main objective of the OVOP project.

On the other hand, One Tambon One Project (OTOP) that was launched in Thailand was inspired by the OVOP movement in Japan (Asian Productivity Organization, 2019). In the said project, the government of Thailand has been promoting local industry through the manufacturing of attractive specialty products based on the abundant native culture, tradition, and nature. Its target area is the administrative unit called ‘tambon’ which means town or village. It aims to allow people living in communities to utilize their skills in manufacturing products while the government and the private sector help in developing products and exploring the markets to create jobs and income while strengthening the economy.

Management refers to the process wherein businesses manage their various resources effectively which involves equipment, materials, and finances (Shopify, n.d.). It includes planning in order for the right resources to be assigned to the right tasks. Managing resources involves scheduling and budgeting for people, projects, equipment, and supplies.

There are four functions of management such as planning, organizing, leading, and controlling (Ortega, 2020). The Planning, Organizing, Leading and Controlling (POLC) framework serves as a guide to build or to think that business managers should do. In the planning, the manager is responsible in making or developing plans. Organizing involves making an organizational structure and allocating human resources. Leading in management functions when the manager motivates, inspires, and encourages the employees in fulfilling their tasks. Controlling, on the other hand, includes evaluating the result of the plans for the development of the company.

Additionally, planning is important in the management since it provides direction, roadmaps to reach the company’s goals, encourages focus, and aligns people with the overall strategic goals of the company. It is intended to ensure that business and support units function well. It was also pointed out that planning aims to develop and sharpen plans to pave way for the organization’s goals, address success key factors, and implement action plans that will improve the productivity and profitability of the business management (Guthrie-Jensen Consultants, Inc., 2020).

On the other hand, Abadesco (2015) pointed out that organizing is a significant function of the management. It is a philosophy, and the strategy of harnessing organizational purpose, processes, and people involved in order to develop the required internal capabilities to sustain the value creation processes of the enterprise. Also, it includes organizing the structure and the resources of the management.

Furthermore, leading is defined as the function of the management which directs and guides every aspiring businessman and manager in achieving the main goal. Also, it binds the significance of motivation, communication, and leadership in a business management and organization (Philippine Women’s University, 2020).

In terms of controlling, San Luis (2020) emphasized that it focuses on making sure that the desired results are achieved. It involves ensuring clear and aligned expected results from individuals, departments, and workers which will lead to the achievement of the overall organization goals and objectives. Through controlling, the management will be able to monitor the progress in order to determine if it is on track for achieving its target. Most importantly, it lets the managers provide the right support, guidance, and consequences towards the improvement and sustainability of the performance of the business.

In line with this, the increase of competitiveness in the economy has been highlighted. This increase brought challenges experienced by manufacturers and individuals involved in business management. It was discussed that the Yokogawa’s production management suite of solutions is intended to link production planning and process control (Yokogawa Philippines, 2015).

In terms of OTOP, in the Department of Trade and Industry (2018), One Town, One Product (OTOP) Philippines was defined as a priority stimulus program intended for Micro, Small, and Medium-scale enterprises (MSMEs). This is a customized intervention of the government in order to enhance the inclusive local economic growth. The main objective of the said program is to let the localities and communities determine, develop, support, and promote products or services which are rooted to its local culture, community resource, creativity, connection, and competitive advantage.

This program was inspired by the OVOP movement that originated in Japan. OTOP Philippines started since 2002 which was further powered by the declaration of Executive Order 176 by former President Gloria Macapagal Arroyo in February 2003. Therefore, this program encourages Filipino entrepreneurs to innovate and produce products and services that are market-ready.

It is also in accordance with the House Bill No. 7672 which was introduced by Representative Loren B. Legarda which is an act Institutionalizing the One Town, One Product (OTOP) Philippines Program, Appropriating Funds Therefor, and for Other Purposes. This bill seeks to institutionalize the OTOP Philippines Program which promotes local products from a sector and from a locality. It is known as the OTOP Philippines Act of 2020. It aims to provide assistance to MSMEs in developing new and innovative products with excellent quality, product development, design, packaging, standards compliance, marketability, production capability, brand development, etc. Also, it intends to assist communities for the growth of their local economy to be more market-oriented and innovation-driven. Therefore, it helps to promote convergence of initiatives from Local Government Units (LGUs), government and non-government agencies in the improvement and promotion of local products.

In addition, the OTOP movement in the Philippines was strengthened by the Executive Order No. 176, s. 2003 through the “Isang Bayan, Isang Produkto, Isang Milyong Piso Program.” This aims to stimulate the local economic activity, growth of SMEs, creating jobs, and developing the enterprises in local communities. Also, it helps to assist the entrepreneurs’ recovery from COVID-19 pandemic’s impact by making use of the local resources and talents.

In a news written by Cervantes (2021), the author of OTOP bill, Magsasaka Party-list Rep. Argel Joseph Cabatbat, pointed out that due to the pandemic, a lot of MSMEs are affected. This issue is significant since the enterprises are the lifeblood of the economy of localities. He said that it is high time that support be provided to the local products. Since the implementation of the OTOP Program, the domestic sales and exports have increased and the local entrepreneurs were equipped with business skills while showcasing the culture, tradition, and creativity of the Filipinos.

It is also in accordance with the Local Budget Memorandum No. 77-A issued by the DBM (2018) that prescribes the guidelines in the preparation of the FY 2019 annual budget of the barangays indicating the ten percent of the general fund of the barangay shall be set aside for the Sangguniang Kabataan that shall be appropriated whether in lump-sum and be disbursed solely for youth development and empowerment purposes. The said agencies work hand in hand with the public and private sectors in order to sustain the OTOP program.

An example is the OTOP Bicol Hub which is open at the Home and Fashion Department of Island City Mall. In this hub, the customers can shop from a wide array of selection of local and regional products. It provides a platform for the most promising products a particular locality that can penetrate the market here in the Philippines and even abroad and bring it closer to the public (Bohol Bloggers Collective, 2018).

Moreover, in Davao Region, DTI was able to launch prototypes of OTOP which are known as Go Lokal Stores. These are pop-up stores which highlight the Filipino products which are made locally by MSMEs. It gives emphasis on brand equity and product or service development. This helps the local communities to enhance the products or services that are unique and known in their locality (Philippine Retailers Association, 2018).

In an article written by Mendiola et al. (2020), OTOP is an effective way to promote inclusive economic growth and increase the competitiveness of local MSEs. In fact, it was mentioned that the OTOP program surpassed its targets for the year 2019 with excellent product development services and large number of sales generated. Therefore, the ultimate goal of this program is for the welfare of the MSMEs and the development of the country and its localities. It helps create job opportunities and income generation for the towns.

Related Studies

The study conducted by Ndirangu and Rotich (2018) about the effect of management practices on organizational effectiveness with regards to SMEs in Kenya, the work of Kapur (2018) about managerial functions within the organization, and the study of Dedeekova (2020) about control, controlling, and its objectives in the organization have similarities with the present study in terms of the management practices that are used in the production of goods and services as these studies also pointed out that these management practices play a significant role in a business for more effective management. However, the research mentioned above differ in the present study because their works deal with the management practices. In contrast, the current work will dealt with the functions of management in OTOP, particularly in Camarines Norte.

Furthermore, in the study conducted by Bryson and Forth (2018) about the impact of management practices on SME performance and Boiral et al. (2021) about organization’s management of the COVID-19 pandemic, they focused on the practices used in the management on the performance of SMEs during pandemic. They have similarities in the present study since they have dealt on management practices. However, these two studies are different in terms of its context because they dwelt on the impact on the performance of SMEs and impact of COVID-19 pandemic in using production management practices while the present study centered on OTOP entrepreneurs.

Moreover, the study conducted by Bloom et al. (2019) about the differences that drive in management practices, Sikdar and Pereira (2019) regarding the business and management practices in South Asia, and Gosnell et al. (2020) about the impact of management practices on employee productivity were focused on the management practices in general. It is similar with the present study since this focused on the practices used by entrepreneurs in the management. However, these three studies differ with the present study in terms of their area of focus because the first gave emphasis on the important drivers of management, business and management practices, and impact on employee productivity while the present study concentrated on planning, organizing, leading, and controlling.

The study conducted by Ndione and Suzuki (2019) about the One Village One Product (OVOP) Concept through design thinking approach, Thanh et al. (2018) about OVOP in Vietnam, specifically in the case of Quang Ninh province, and Puutio (2020) about creative economies and localized development initiatives were focused on the OVOP movement similar with the present study where it focused on one town one product movement and its adaptation through OTOP in the Philippines and both have emphasized that the OVOP movement supports the economic growth of local communities. Meanwhile, the differences observed between the three studies and the current research is that the scope of the previous researches is OVOP implementation while the latter is the OTOP program.

Also, in the study conducted by Noble (2018) about the mobilities of the One-Product Policy from Japan to Thailand, and Widiyanti (2018) which is a comparative study about the OVOP as an engine of local economic development in Japan and Indonesia, it was mentioned that Indonesia’s adaptation of OVOP has differences in the original OVOP in Japan. These studies were similar to the current study in terms of giving emphasis on the one product policy towards the development of economy. But despite the similarities, they differ because the previous studies tackle the adaptation of OVOP to the implementation of OTOP while the present emphasized the OTOP program, particularly the production management practices implemented by the entrepreneurs.

On the other hand, the studies conducted by Almase (2017) about the business strategies of MSMEs in the Quezon province, by Barbosa (2021) on financial management practices of micro and small enterprises in Tanuan, Leyte, Philippines, and by Duodu et al. (2019) regarding the influence of organizing practices on organizational performance of five selected small, medium, and large business in the Philippines have similarities with the present study in terms of the MSMEs. These studies pointed out that management practices play a significant role in the businesses in the Philippines. However, these studies differ in the kind of business and the context these were conducted as they emphasized the influence of the practices and strategies in the business industry. On the other hand, the present study is focused on OTOP programs and their entrepreneurs.

In addition, in the studies conducted by Anoos et al. (2020) about the financial management of micro, small, and medium enterprises in Cebu, Philippines, Gallardo (2017) about the financial management practices of SMEs in Nueva Ecija, and Capiña (2021) about the impact of management practices on MSEs performance in Marinduque, Philippines were focused on the management practices used by the businesses in the Philippines. These studies have similarities with the present study. However, these studies have differences in the context these were conducted as they focused on Cebu, Nueva Ecija, and Marinduque. On the other hand, the present study focused on OTOP programs and their entrepreneurs in Camarines Norte.

Meanwhile, studies conducted by the International Trade Centre (2020) about promoting SME competitiveness in the Philippines and Shinozaki and Rao (2021) about the COVID-19 impact on businesses under the lockdown highlighted the MSMEs in the Philippines are similar to the present study because they focused on the competitiveness of the SMEs in the Philippines. The present study is different due to the particular MSMEs under OTOP projects while the previous studies highlighted MSMEs in general.

Comparatively, the studies conducted by Soriano (2019) about the OTOP program in Tarlac province, Tabisola (2021) about the socio economic impact of OTOP entrepreneurial program in Region 1 Philippines, Landocan (2018) about One Town One Product, specifically coffee production, Lim (2021) about the impact assessment of COVID-19 on the Philippine manufacturing firms, and Parilla (2020) about the local economic promotion through OTOP focused on OTOP Philippines have similarities with the current study since they focused on the OTOP implementation in the Philippines. However, the previous studies differ because it highlighted impact assessment and local economic promotion while the present study dealt with the production management practices of OTOP entrepreneurs.

All in all, these studies have pointed out that the adaptations such as One Tambon One Product (OTOP) in Thailand, One Commune One Product (OCOP) in Vietnam, and the One Town One Product (OTOP) in the Philippines originated from the One Village One Product in Japan. Also, the previous studies focused on the effectiveness and impact of the said movements though none of these studies gave emphasis on the practices used by the OTOP entrepreneurs.

The present study has similarities to the previous studies mentioned in terms of identifying the management practices and assessing its impact to businesses. There are also studies which focused on the OTOP and other movements or projects related to it. However, the present study is different from the previous studies since it intended to assess the extent of application and level of effectiveness of the management practices to the OTOP entrepreneurs.

It is in this context that this study about the management practices of entrepreneurs under OTOP projects in Camarines Norte is very much important since this focused on the practices applied by the entrepreneurs through action research. In other words, the researcher dealt with the utilized practices in the production management of OTOP programs.  In addition, the previous studies focused merely on the effectiveness of the said movement and the importance of entrepreneurs’ expertise, which is broad. So, the researcher focused on the production management practices of the OTOP entrepreneurs in Camarines Norte, which the other studies did not deal with.

Conceptual Framework

In assessing the management practices implemented by the OTOP entrepreneurs, the researcher conceptualized the variables present in the study, as shown in Figure 2. The paradigm illustrates the conceptual framework of this study to show the assessment of the management practices of entrepreneurs under the OTOP projects in Camarines Norte.

The profile of the respondents was first determined including their age, sex, civil status, educational attainment, number of seminars/trainings attended, and number of memberships to organizations in order to identify its relationship to their application of the management practices such as planning, organizing, directing, and controlling are the key to come up with a proposed business plan for effective production management practices. The variables were presented with equal importance to identify the practices that the OTOP entrepreneurs are using.

It is observable that the paradigm is an illustration following the Mediation Model (ScienceDirect, 2017) which seeks to identify the mechanism that underlies an observed relationship between the independent variable which includes the management practices and a dependent variable which is the proposed business model, via the inclusion of a mediator variable which is about the problems encountered by entrepreneurs under OTOP projects in relation to their management practices.  This paradigm guided the researcher in conducting this study to assess the production management practices of entrepreneurs. The conceptual model adopted in the paradigm is the p-model, this is used in the research studies that proposed a program or any intervention measure.

 Figure 1. Conceptual Paradigm of the Study

Theoretical Framework

The study is anchored on the Planning, Organizing, Leading, and Contolling (POLC) Framework, which is the Management Theory, one of the strategic management theories introduced by Jones (1995) in his book entitled Organizational Theory. Management was defined in terms of its functions and objectives. This explains the concept of management, which is the planning, organizing, leading, and controlling of resources to achieve goals efficiently and effectively. The said theory was used in the study since the management practices have something to do with the functions of management in a business industry. The management theory serves as the foundation for a business to be successful.

In the planning, it includes setting objectives and determining a course of action to achieve those objectives. It requires managers to be aware of the conditions facing the organization and forecast future directions. Also Planning is a process consisting of several steps. The process begins with environmental scanning which simply means that planners must be aware of the critical contingencies facing their organization in terms of economic conditions, their competitors, and their customers. Planners must then attempt to forecast future conditions. These forecasts form the basis for planning. Also, managers need to be effective decision-makers. Planning has three different steps such as strategic planning to analyze competitive opportunities and threats, tactical planning to develop relatively concrete means to implement the strategic plan, and operational planning to achieve the goals and objectives of the organization.

On the other hand, organizing is the function of management that includes developing an organizational structure and allocating human resources in order to make sure that the objectives are met. Leading involves the social and informal sources of influence which are used by individuals to inspire action taken by others. The workers are motivated and exert more effort to attain organizational objectives if managers are effective leaders. Organizing also involves the design of individual jobs within the organization. Decisions must be made about the duties and responsibilities of individual jobs, as well as the way the duties should be carried out.

Controlling is about ensuring that performance does not deviate from standards. It includes establishing performance standards, comparing actual performance against standards, and taking corrective action when needed. This function points out that the role of managers is to take necessary actions to make sure that workers are contributing to the achievement of the organizational and departmental objectives.

This theory is connected to this study since management practices are rooted in Management Theory in terms of the relationship between the management towards a successful business. In terms of planning, this study identified the practices used by the entrepreneurs in identifying the goals to be attained by the OTOP business. Also, the organizational structure was studied and how the entrepreneurs allocate the resources. These practices were connected to the leading function of the management to influence the workers and employees. To ensure the performance and the success of the management, controlling function was also studied.

As shown in Figure 2, variables of the Management Theory are represented as parts of a gear which functions. The gear symbolizes the functions of management practices. The theory provides the parts of the gear as it shows how these functions portray an important role in the management process used by OTOP entrepreneurs.

The gear symbol is used to represent progress, work, and innovation. It symbolizes the interdependence and integration of the management practices towards an effective management process of a business. With all practices such as planning, organizing, directing, and controlling, the management will be effective and successful. The color of the gear is blue since it represents a business that is well-planned, organized, directed, and controlled. Having such business characteristics leads to a successful and secure business which is symbolized by the color blue. In line with this, planning is important as one of the management practices because as used in the study, it involves how entrepreneurs of OTOP projects formulate plans towards the realization of the success of business, estimate materials, and forecast demands of target customers.

Additionally, organizing is significant since it is the function of the management, specifically the OTOP entrepreneurs, to observe standardized internal processes, implement quality management system effectively, maintain services regularly, and manage the resources. In relation to this, directing is also used in this study. It is the function of the OTOP entrepreneurs in leading and directing in the process of management. It involves training and educating employees for continual improvement, providing rapid responses to meet the changing requirement of the customers and buyers, dealing with suppliers, quickly responding to changes in demand, and being the manager or owner in the OTOP project.

Furthermore, controlling is also important in this study since it is the function of the management or the entrepreneurs of OTOP projects to maintain constant production and supply, welcome and act on the complaints and suggestions of the customers, monitor the inventory, analyze overall efficiency of a manufacturing process, determine quality products, and report production data regularly. The researcher chooses the blue color to signify confidence, dignity and loyalty. It is also a popular color to businesses for its authoritative appeal and ability to evoke success and security.

Figure 2.  Theoretical Paradigm of the Study

METHODOLOGY

Method of Research

Based on the research questions formulated, this research utilized the descriptive-correlational method. According to Creswell (2012), the descriptive approach in the study is particularly the descriptive statistic approach due to the quantitative approach that defines the research questions based on the trends in the field of the research site.  In this research, the descriptive method guided the researcher in the analysis of the respondents’ profile in the different municipalities of Camarines Norte, production management practices, and the problems they encountered in managing their businesses.

In addition, according to Williams (2007), the correlational research method analyzes the difference between two characteristics of a particular group of respondents. It investigates relationships between variables without the researcher controlling or manipulating any of them. A correlation reflects the strength and/or direction of the relationship between two or more variables. In this study, correlational methods were used to examine the significant relationship between the organizational profile and their management practices.

Population, Sample Size, and Sampling Technique

Since the study focused on the production management practices of Entrepreneurs under One Town One Product Projects in Camarines Norte, only the managers, owners or supervisors who have the knowledge on the production management practices were chosen as respondents to this study. The researchers used total enumeration in determining the number of respondents.  A total of 70 respondents were involved in the study based on the records of the Department of Trade and Industry in 2021. They were chosen to give reliable, credible information without biases and values judgment.

Description of Respondents

The respondents were 70 entrepreneurs who consist of owners, managers, and supervisors operating under the OTOP Projects in the Province of Camarines Norte based on the list provided by DTI in 2021, whether working in a retail or service establishment, in a sole proprietorship, partnership or corporation and irrespective to the number of workers employed. This group of respondents includes managers or supervisors with knowledge and experience in the production management practices under OTOP Projects, or the owners/entrepreneurs themselves.

Data Gathering Procedure

The researcher visited the libraries to read books, magazines, and unpublished thesis as his course of information in making the questionnaire, as well as for the text enrichment of the study. The researcher was able to construct the final draft.

To strengthen the survey questionnaire’s contents, the instrument was checked and validated by the experts. With the refinements done and with the approval of the adviser and the questionnaire was prepared, revised, and approved for a dry run.  To gather the necessary data, the researcher sought the approval of concerned authorities including the OIC-Provincial Director of the Department of Trade and Industry prior to the conduct of the study.

A dry run of the questionnaire was conducted on 20 entrepreneurs in the identified OTOP projects outside Daet, Camarines Norte to help improve the questionnaire by eliminating the redundant questions and inconsistencies in the instrument and testing its reliability. Using Cronbach’s Alpha, the reliability of the questionnaire was tested wherein it resulted in an alpha coefficient of 0.966 which indicates an excellent internal consistency within the items of the questionnaire.

Cognizant to the sensitivity of the information that the researcher wanted to gather with the target respondents, the research was fully explained to the respondents in terms of the nature and purpose of the research prior to their engagement. Informed consent from the entrepreneurs/managers of the target establishment to allow them to accomplish the survey questionnaire freely was provided.

The researcher guided the respondents on how to accomplish the questionnaire for easy comprehension of the instructions and contents and ensured that answers were treated with utmost confidentiality during the face-to-face interview by visiting the different municipalities where the businesses are located. Also, the results were encoded and tabulated accordingly and were statistically treated, interpreted, and analyzed. Also, the researcher created a google form link where the respondents can easily access and answer the question

Statistical Treatment of Data

The study employed the following statistical treatment: Frequency distribution and percentage, ranking, weighted mean, Somer’s D, and Rank-biserial correlation.

Descriptive statistics such as frequency distribution and percentage ranking were used in analyzing and interpreting data, particularly those that were gathered through the survey. The said statistical treatment was applied to provide a meaningful description of the profile of the entrepreneurs and the organizational profile of the enterprises under OTOP projects.

Additionally, the management practices of the entrepreneurs under OTOP projects such as planning, organizing, directing, and controlling applied weighted mean. This determined the percentage or degree of importance of the production management practices based on the respondents’ assessment in terms of planning, organizing, directing, and controlling. For the problems encountered by the OTOPreneurs when it comes to management practices, it applied the frequency and ranking methods of statistical treatment.

Lastly, Somers’ Delta Correlation Coefficient d and Rank-biserial correlation were utilized to determine the correlation aspects in this study, particularly between the profile of the entrepreneurs and their management practices, as well as the relationship between the organizational profile of the enterprises and their management practices.

RESULTS AND DISCUSSIONS

Profile of the Respondents

Results in Tables 1 to 4 present the profile of the respondents. The variables described include age, sex, civil status, educational attainment, seminars/trainings attended, and the number of memberships to organizations.

Age. Table 1 shows the age profile of the respondents. Majority belong to the age bracket of 25 to 34 and 45 to 54 years old with 19 respondents each or 27.1 percent, followed by age bracket that lies between 35 to 44 years old with 13 respondents or 18.6 percent, preceded by 24 years old and below with 9 respondents or 12.9 percent, and 55 to 64 years old with eight respondents or 11.4 percent. The lowest frequency belongs to age bracket that lies between 65 years old and above with two respondents or 2.9 percent.

Table 1:- Age Profile of the Respondents

The results clearly depict that the dominant owners of the local businesses or entrepreneurs are a combination of young adults and people in the late middle age. This implies that due to their age, they are more equipped with knowledge and skills about management practices, which is why they are entrepreneurs of One-Town One Product projects.

Sex. Table 2 displays the sex profile of the respondents.  It can be observed that the majority are female constituents 43 respondents or 61 percent while the males are 27 or 39 percent.

Table 2:- Sex Profile of the Respondents

This result implies that the OTOP projects in the municipality are dominated by businesses where most entrepreneurs are women. It means that these women participate in the promotion of local products through venturing as OTOPreneurs. One of the women entrepreneurs said that “women are engines for economic growth for they provide different perspectives in business. “It is also evident that they are resilient for they are patient enough to handle unexpected challenges,” she added.

Civil Status.  Table 3 shows the profile of the respondents as to their civil status. The majority with a frequency of 43 or 61 percent are married, while 27 or 38 percent are single.

Table 3:- Civil Status of the Respondents

The data shows that entrepreneurs under OTOP projects in Camarines Norte are mostly married individuals who manage both business and family matters. The result is supported by Table 1 wherein majority of entrepreneurs fall under the age bracket of 25 to 34 and 45 to 54 years old and along this bracket, in Filipino culture, they are expected to be married.

Educational Attainment.  Table 4 shows the profile of the respondents as to their educational attainment. Majority of respondents with a frequency of 31 or 44.3 percent are college graduates, followed by 17 respondents or 24.3 who reached college level, preceded by high school graduates with frequency of 13 or 18.6 percent, high school level with frequency of six or 8.6 percent, master’s with units having frequency of two or 2.9 percent, while the remaining 1.4 percent or one respondent is a master’s graduate.

Table 4:- Educational Attainment of the Respondents

The data above shows that the entrepreneurs under OTOP projects in Camarines Norte are mostly college graduates signifying that they are equipped with enough knowledge and skills in managing a business or industry. This implies that the learnings and knowledge gained from the bachelor’s degree they took played an important role in their experience in business management.

Seminars/Trainings Attended.  Table 5 shows the profile of the respondents as to their number of seminars/trainings attended for the past two years. Majority of respondents with a frequency of 50 or 71.4 percent have one to three seminars/trainings attended, followed by four to six with the frequency of 13 respondents or 18.6 percent, ten and above with frequency of six respondents or 8.6 percent, while the remaining 1.4 percent or one respondent has seven to nine seminars/trainings attended.

Table 5:- Profile of the Respondents as to Number of Business-Related Seminar/s Training Attended

The data above shows that entrepreneurs of OTOP projects in Camarines Norte mostly have one to three seminars/trainings attended which could signify that they are only given few opportunities in attending seminars and most of them are focused on managing their businesses to the extent that they have little to no time for trainings. It implies that most of them though have the intention for the improvement and development of management skills and practices, has been seen that they exerted more efforts to do so. Trainings and seminars on elevating management skills and practices are so important because it provides an assurance that proper implementation of different policies and standards were being met.

Number of Memberships to Organizations.  Table 6 exhibits the profile of the respondents as to the number of memberships to organizations. Majority of respondents have one to three memberships with a frequency of 66 which is represented by 94.3 percent, followed by three or 4.3 percent of the respondents with four to six memberships, and the least or one or 1.4 percent of the respondents have seven to nine memberships.

Table 6:- Profile of the Respondents as to Number of Business-Related Memberships in Organizations

The results revealed that most of the OTOP entrepreneurs are into small enterprise having few numbers of memberships to organizations. It means that most are small businesses wherein they are not yet inclined in getting memberships in different organizations or they are too busy to avail and get many business-related memberships. Most of the entrepreneurs did not want to join any organization aside from what is obligated or mandated by the law because they are busy in their production to sell the product, and they need to follow the production schedule.

Management Practices of Entrepreneurs under OTOP Projects

Tables 7 to 10 exhibit the application of management practices of entrepreneurs under One-Town-One-Product Projects on the different management functions such as planning, organizing, directing, and controlling with the different practices indicated for the specific functions.

Planning. Table 7 shows the level of implementation of management practices of entrepreneurs in terms of planning. The result shows that the overall weighted mean for the aspect of planning is 3.43 which suggests that the management practices were being implemented in the OTOP Projects. Plan materials required to meet future customer demands got the highest weighted mean of 3.70 and interpreted as implemented. On the contrary, relying on historical data in project plan of the business with 3.16 weighted mean and following keenly on what competitor has in the market such as conducting a weekly competitors check, or industry visit as basis for strategies with 3.19 weighted mean were recorded with the lowest frequency and interpreted as slightly implemented in the management of the business.

Table 7:- Management Practices of the Entrepreneurs under OTOP Projects in terms of Planning

Legend:

4.20 – 5.00           Highly Implemented (HI)

3.40 – 4.19           Implemented (I)

2.60 – 3.39           Slightly Implemented (SI)

1.80 – 2.59           Partially implemented (PI)

1.00 – 1.79           Not Implemented (NI)

It can be inferred that the entrepreneurs of OTOP projects implemented the management practices in terms of planning because the results showed a positive evaluation based on the vision and mission of the business and estimating the number of raw indicators and they perceived its usefulness backed up by plans based on the vision and mission of business and estimates number of raw materials required to meet future customer demand which received the highest rating. It implies that most of the entrepreneurs or managers of OTOP projects begin the management process by planning the steps to do and tasks to accomplish based on the vision and mission of the business. Also, estimating the materials needed received the same rating which is the highest since it implies that aside from planning the goals, objectives, and tasks to accomplish, most OTOP entrepreneurs formulate plans in the estimation of the materials to be used.

Organizing. Table 8 presents the data with regard to the management practices of the entrepreneurs under OTOP projects in terms of organizing. An overall weighted mean score of 3.40 was recorded, which is interpreted as implemented. Observance of standard operating procedure specifically on the safety-first procedure on the production line and implementing employee’s orientation before deploying to work assignment got the highest rating with weighted mean of 3.74 and 3.61, respectively, which are interpreted as implemented. The indicators with weighted mean of 3.00 and 3.09, respectively, which were interpreted as slightly implemented are the usage of computer software to manage inventory to monitor inbound and outbound of materials and products and counseling and assisting employee to increase selling productivity rate.

Table 8:- Management Practices of Entrepreneurs under OTOP Projects in terms of Organizing

Legend:

4.20 – 5.00           Highly Implemented (HI)

3.40 – 4.19           Implemented (I)

2.60 – 3.39           Slightly Implemented (SI)

1.80 – 2.59           Partially implemented (PI)

1.00 – 1.79           Not Implemented (NI)

The results revealed that the entrepreneurs of OTOP projects implemented the management practices in terms of organizing because they positively evaluated the indicators especially observance of the standard operating procedure like the safety-first procedure in the production line which gained the highest rating. It implies that the owners of businesses in the OTOP projects monitor and are concerned with the welfare of its personnel. The OTOPreneurs practice this in terms of maintaining and sustaining compliance to standards in the management process through being organized and hands-on by making sure that the safety protocols are being observed.  In safety first, they are more into food or production manufacturing. Also, implementing employee orientation before deploying to work assignments got the second highest rating since most entrepreneurs make sure that the employees or workers are informed about their tasks to do and accomplish. This implies that OTOP entrepreneurs value the importance of making the management process organized, especially the employees.

Directing. It is shown in Table 9 that an overall weighted mean score of 3.47 was recorded and described that management practices of entrepreneurs under OTOP projects in terms of directing are being implemented. Highest rating was recorded on the indicator which states that the entrepreneurs adhere strictly to planned production schedule which obtained a weighted mean of 3.71 and interpreted as implemented. It was followed by the following indicators relative to proper utilization to avoid wastage which acquired a mean score of 3.66 which is also interpreted as implemented. On the contrary, the indicators such as administering the clear performance evaluation to every employee and clarifying and defining Key Performance Indicator for the business and employees obtained weighted mean score of 3.29 and 3.27 respectively, which are interpreted as slightly implemented.

Table 9:- Management Practices of the Entrepreneurs under OTOP Projects in terms of Directing

Legend:

4.20 – 5.00           Highly Implemented (HI)

3.40 – 4.19           Implemented (I)

2.60 – 3.39           Slightly Implemented (SI)

1.80 – 2.59           Partially implemented (PI)

1.00 – 1.79           Not Implemented (NI)

The result revealed that the entrepreneurs of OTOP projects in Camarines Norte implemented intensive production management practices in terms of directing because the results showed a positive evaluation of all the indicators measured especially adhering strictly to planned production schedule and proper utilization to avoid wastage, duplication of efforts, and overlapping of performances which gained the highest ratings.

Controlling. Table 10 shows the management practices of entrepreneurs under OTOP projects in terms of controlling. The results show recorded the overall weighted mean score of 3.45, which implies that indicators specified therein were being implemented. Highest score with a weighted mean score of 4.00, interpreted as implemented was obtained by the indicator which states that entrepreneurs were most likely welcome and act on customer’s complaints in order to sustain the image of the business, and followed by the preparation of monthly report on income/expenses, production data and uses financial and performance report in the planning process with 3.64 weighted mean, which is also interpreted as implemented.

On the other hand, specific indicators such as carrying out of surveys/research to evaluate customer satisfaction and standardization of plans or the targets recorded 3.07 and 3.26 weighted mean which are interpreted as slightly implemented.

Table 10:- Management Practices of the Entrepreneurs under OTOP Projects in terms of Controlling

Legend:

4.20 – 5.00           Highly Implemented (HI)

3.40 – 4.19           Implemented (I)

2.60 – 3.39           Slightly Implemented (SI)

1.80 – 2.59           Partially implemented (PI)

1.00 – 1.79           Not Implemented (NI)

The data suggests that the entrepreneurs of OTOP projects in Camarines Norte implemented the production management practices in terms of controlling because almost all the indicators were positively evaluated which showed that they find the practices to be truly useful. The result implies that the entrepreneurs under the OTOP projects in the province were becoming well-versed in terms of addressing customers’ complaints with regard to the services and production-related dilemmas. Having this positive result on this specific indicator implies that most of the business owners/managers and also their personnel know how to take good care of their customers. They also give importance to the feedback they receive that would help improve their services and products.  Also, it implies that the preparation of monthly report on income/expenses, production data and uses financial and performance report in the planning process are being done and practiced by the entrepreneurs in managing their OTOP projects. These reports are included in the function of the management, which is controlling.

Problems Encountered by the Entrepreneurs Under OTOP Projects in Relation to their Management Practices

Table 12 presents the problems encountered by the entrepreneurs under OTOP projects in Camarines Norte in relation to their management practices. The number one factor that affect the OTOP entrepreneurs towards the use of the management practices is the price increase of raw materials with a frequency of 53. It was followed by limited financing chosen by 46 respondents. On the other hand, the indicators with the lowest frequency were unhealthy company culture in terms of nurturing new talents with 8 responses and the unembraced diversity of workers in a workplace with 7 responses.

Table 12:- Problems Encountered by the Entrepreneurs under OTOP Projects in Relation to their Management Practices

The result is connected to the OTOP entrepreneurs experiencing problems involving price increase, financing, market competition, business innovations, sales channels, training, market transformations, management skills, planning, etc. However, only a few entrepreneurs of OTOP projects experienced problems like diversity of workers, unhealthy company culture, inappropriate compensation and absences of focus at work.

Most of the existing problems encountered by the entrepreneurs under OTOP projects were related to the financial aspects of the business. This particularly includes the price increase and limited financing. Such factors play one of the most important roles in the business and that is fueling the vision and objectives set for the business. Without enough financial resources on hand, it will be a huge challenge and will require that a manager/owner must know how to properly and immediately address it.

It implies that the entrepreneurs find it challenging to address the issue or problem of price increase. Nowadays, it is undeniable that prices of materials increase over time. If there is a price increase in raw materials, then, the entrepreneurs tend to increase the prices of their products as well to have sales or revenues in their business.

Un-embracing the diversity of workers in a workplace became the least of all the problems being encountered by the entrepreneurs under the OTOP projects which implies that a friendly working environment is present in the current era in the province. This helps a lot with providing quality services and products but not compromises the market competition that helps in improving the level of production and skills of workers, managers, and/or owners.

Also, unhealthy company culture in terms of nurturing new talents is one of the least encountered problems of entrepreneurs. It implies that most OTOP entrepreneurs provide a healthy company culture so that the talents, skills, and abilities of the employees are nurtured and developed.

Proposed Business Model to Improve Management

Practices of Entrepreneurs

Based on the results, a business model is suggested as the output of this study to improve the effectiveness of the management practices of the entrepreneurs under OTOP projects in Camarines Norte. The model specifically focuses on the Gerrynism Philosophy, which is named after the researcher, that in order to improve the management process and to deal with the problems encountered by the OTOP entrepreneurs, effective management practices can be used such as formulating, arranging, leading, and monitoring.

Figure 3 presents the business philosophy which is anchored on the proposed business model to improve the implementation of management practices of OTOP entrepreneurs. The philosophy contains the management practices, and the primary tasks to do and perform in each step and function. It was formulated to identify and address the issues that need to be given attention by entrepreneurs of OTOP projects.

The figure comprises of the step-by-step process in managing a business, particularly, OTOP projects. In fact, Stowers (2022) emphasized that starting a business requires a lot of work, time, effort, and money. Through this proposed business model in management practices, entrepreneurs will be able to be guided in managing their businesses.

The Gerrynism Philosophy gives emphasis on the management practices. First is to formulate and conduct strategic plans for the OTOP project. This will be made possible through planning based on the vision and mission of the business, involving employees in the identification of strategic targets, estimating materials and resources, and having an end in view. Through having a well-designed plan, there will be a mastery of the marketplace, increased demand, and a convenient management process.

Furthermore, it is important to arrange the planned work, authority, and resources. This will be done through adhering consistently to the flow of the management process, using organizational structure, having a division of labor or tasks to be performed or done, implementing orientation with the employees of their work assignments, and it also helps the entrepreneurs to be more efficient and productive to develop effective plans that allows to achieve important goals and objectives of the business.

Also, OTOP entrepreneurs should be able to lead in order to inspire workers to perform tasks successfully. With the involvement of entrepreneurs, managers, and workers/employees, there will be an efficient management process. This will be done through adhering strictly to planned production schedule, locating and tracking movement of items sent to customers, training and educating employees for continual improvement, administering performance evaluation to employees, etc. Moreover, management process would not be successful without monitoring the progress of the OTOP projects. This will be done through preparing monthly report on the management process, acting on the complaints of customers, measuring inventory and performance of employees, and maintaining constant production and supply.

Below is the philosophy anchored on the proposed business model.

Figure 3. Gerrynism Philosophy to Improve Management Practices of Entrepreneurs

FINDINGS

Based on the data gathered, the findings of the study are as follows:

The OTOPreneurs were mostly of 25 to 34 and 45 to 54 years old with 19 respondents each or 27.1 percent, predominantly female with frequency of 43 or 61.4 percent, married with frequency of 43 or 61.4 percent, are college graduates with frequency of 31 or 44.3 percent, have attended one to three seminars/trainings with frequency of 50 or 71.4 percent, and have one to three memberships to organizations with frequency of 66 or 94.3 percent.

The management practices of entrepreneurs under OTOP projects in terms of planning, organizing, directing, and controlling were rated as implemented with an average weighted mean of 3.43, 3.40, 3.47, and 3.45, respectively. In terms of the planning, plans based on the vision and mission of the business and estimates the number of raw materials required to meet future customer demand got the highest weighted mean of 3.70. On the other hand, the lowest rating was recorded on the indicator which states that there should be plans of treating problem as basis for development opportunities for employees.

In terms of organizing, observing standard operating procedure like the safety-first procedure in the production line received the highest weighted mean of 3.74. However, the lowest rating was recorded and interpreted as slightly implemented on the indicator which is regarding the usage of computer software to manage the inventory to monitor the inbound and outbound of materials and products. With regard to directing, adhering strictly to the planned production schedule got the highest weighted mean of 3.71. In contrast, it was shown that some of the entrepreneurs under the project fall short on the clarification and definition of Key Performance Indicator (KPI) for the employees and the business itself. Along controlling, welcoming and acting on customers’ complaints gained the highest rating of 4.00 weighted mean, resulted to retain their customers that patronize their products. On the contrary, lowest rating was recorded on the indicator which is about carrying out surveys/research to evaluate customer satisfaction.

The test for significant relationship between the profile of the entrepreneurs and their management practices along planning, organizing, directing, and controlling was tested at 0.05 significant level. Age has a negative correlation with the mentioned indicators with 0.104 in planning, 0.009 in organizing, 0.06 in directing, and 0.087 in controlling, except for the organizing practices with weak negative relationships. Further, the sex gained p-values 0.138, 0.255, 0.419, and 0.278 respectively at 0.05 significant level, which means that the correlation is not significant between the variables considered. Meanwhile, civil status and the management practices on the different indicators of the OTOP entrepreneurs obtained the results of p-values such as 0.952, 0.628, 0.62, and 0.834 at 0.05 significant level.  Obtain no significant relationship among the variables considered. Additionally, the educational attainment and the management practices on the different indicators of the entrepreneurs of OTOP projects obtained the results such as <0.001 in all indicators at 0.05 significant level. Thus, the variables considered are significantly related.

Moreover, the number of business-related seminars attended and the management practices on the different indicators of the OTOP entrepreneurs obtained significant relationship with the results in the p-values such as 0.036, 0.002, 0.001, and 0.002 at 0.05 significant level. With this result, the null hypothesis is rejected. Furthermore, the number of memberships to organizations related to business and management practices on the different indicators of entrepreneurs of OTOP projects obtained results such as 0.136, 0.032, 0.078, and 0.071 at 0.05 significant level, which can be interpreted as no significant relationship, except on the organizing practices.

In terms of the problems encountered by the entrepreneurs under OTOP projects in relation to their management practices, the number one factor is the price increase of raw materials with a frequency of 53. On the other hand, un-embracing the diversity of workers in a workplace became the least of all the problems being encountered by the entrepreneurs under the OTOP projects with a frequency of 7.

A proposed business model was designed to improve the implementation of the management practices of entrepreneurs under OTOP projects in Camarines Norte. The business model specifically focuses on the management practices and individuals involved to improve the management process and deal with the problems encountered by OTOP entrepreneurs which gravely affect the implementation and effectiveness of the management practices, also this business model is aligned with the business philosophy that the researcher formulated.

Aside from the Gerrynism Philosophy, a business was developed to introduce other possible streams that will guide the value propositions such as convenient, various payment methods available, no minimum order requirement, increased sales, and transparent cost, which according to the researcher is not yet practiced by the OTOP entrepreneurs. It can be justified that the revenue streams such as product sales and advertising revenue will help them address the issue in the price increase of raw materials and other problems experienced by them. The said business model follows the format of the business model Canvas which is a strategic planning tool used by managers to illustrate and develop their business model. The business model canvas template was originally introduced by Osterwalder (2004), as cited by Corporate Finance Institute (2022).

It includes the (1) Key Partners or the important suppliers in the supply chain of the business, (2) Key Activities involving specific activities necessary to deliver the value propositions, (3) Key Resources or the assets of management practices, distribution channels, and revenue streams may require to function, (4) Value Propositions or the core value the company provides to customers, (5) Customer Relationships or the interaction and communication with customers, (6) Channels or the ways to deliver the value propositions and reach customer segments, (7) Customer Segments of the value proposition targets, (8) Cost Structure or the key costs in the company’s business model, and (9) Revenue Streams which includes the ways the value proposition will generate money for the business. The researcher created the contents of the model to address the problems encountered by the OTOP entrepreneurs in using management practices. The key partners are the DTI, OTOPreneurs, OTOP Coordinators, LGUs, and People’s Organizations, which are considered the stakeholders of the OTOP business projects.

Additionally, the key activities include implementing management practices and managing the OTOP projects. These are the tasks or roles to be accomplished by OTOP entrepreneurs. The key resources are technology, employees, customers, and sales. These are the resources or assets necessary to deliver the value propositions such as convenient, various payment methods available, no minimum order requirement, increased sales, and transparent costs. Furthermore, the relationships with customers will be maintained through personal assistance and welcoming and acting on the customers’ complaints. The customer segments are offerings to customers who want to buy local products and mass market as they are important customers in the industry. To be able to reach the customer segments and deliver value propositions, the channels are direct sales, physical retail outlets, outside sales force, and online sales.

Regarding the cost structure, the major drivers of costs are technology development, raw material cost, and research and development cost. Through this, the entrepreneurs will be focused on cost optimization or value. Thus, for the value propositions to generate money First, know the target customer in detail through profiling based on the products that the business offers, Second, post the products online on various social media sites through online selling, Third, join in the different bazaar and booth set-up lastly, improve the packaging and presentation of the products to be more marketable.

Figure 4. Proposed Business Model Canvas for Entrepreneurs under OTOP Projects

CONCLUSIONS

1. In the light of the findings of the study, the following conclusions were drawn:
2. Most of the OTOPreneurs in Camarines Norte were ages 25 to 34 and 45 to 54 years old, female, married, college graduates, have attended one to three seminars/trainings, and have one to three memberships in organizations.
3. The entrepreneurs of OTOP projects implement management practices in terms of planning, organizing, directing, and controlling.
4.  There is no significant relationship between the age profile of the respondents and management practices along planning, directing, and controlling, but it has weak negative relationship in organizing practices. There is also no significant relationship between sex profile of the respondents and the said variables. Also, civil status has no significant relationship on the management practices of the said variables. The educational attainment has moderate positive relationship on the management practices along planning, organizing, and controlling but has weak positive relationship along directing. The number of business-related seminars attended has weak positive relationship on management practices along planning, organizing, and controlling but has moderate positive relationship along directing. On the other hand, the number of memberships to organizations has no significant relationship on management practices along planning, directing, and controlling but has strong positive relationship on organizing.
5. The main problem encountered in the implementation of management practices of the One-Town-One-Product entrepreneurs in Camarines Norte is the price increase of raw materials that can result to the low production of the business.
6. The proposed business model was designed to improve the implementation of the management practices of entrepreneurs under OTOP projects in Camarines Norte.

RECOMMENDATIONS

After a thorough analysis of the data gathered in the study, the following are highly recommended:

1. The entrepreneurs of OTOP projects may need to intensify their participation in training and seminars related to business and entrepreneurship. Also, they may pursue graduate studies and higher educational attainment for their personal and professional growth as entrepreneurs.
2. The DTI, local government units, and other relevant authorities may strengthen their advocacy activities to raise awareness of the management practices and strategies among the entrepreneurs and other people involved in OTOP projects.
3. OTOP entrepreneurs may consider engaging in business-related organizations to increase their management capacity. Their engagement in business organizations would help them to implement and apply management practices effectively.
4. The entrepreneurs of OTOP projects may utilize the best management practices to address problems involving price increase of raw materials, limited financing, coping with market competition, inappropriate speed of action in business innovations, etc.
5. The entrepreneurs may apply the proposed business model to improve their management practices. They may adapt the business model by applying the Gerrynism Philosophy which includes formulating, arranging, leading, and monitoring the management process. Through this philosophy, they can use the business model canvas proposed in order to address the common problems they encounter in business management and achieve the value propositions through the revenue streams.
6. Since the scope of this research is only limited to the implementation of management practices, future researchers may conduct an in-depth study of the level of effectiveness and also its advantages, and not only the problems encountered. They may also create an action plan or a business plan as an output of their study.

ACKNOWLEDGMENT

The researcher would like to express his deepest appreciation and thanks to the following people, who, in one way or another, showed concern and offered efforts, time and encouragement in the preparation of the study.

To Dr. Gehana D. Lamug, his master’s thesis adviser, for unselfishly providing the necessary knowledge and insights into the basics of research; for her wisdom, hard work, and shared commitment.

To Dr. Jennifer S. Rubio, Dean of Graduate School, Dr. Maria Cristina C. Azuelo, and Dr. Girly H. Naval, the composition of the panel of examiners for sharing their precious time, expertise, and efforts in scrutinizing this paper for the purpose of improvement.

Researcher’s buddies during the whole MBA journey, Ayesa Syra Ombao, Mary Jane Rafael-De Leon and his husband Wilfredo De Leon, and Xena Baloloy, for their valuable help and support and for the resources extended.

The researcher’s colleagues and circle of peers for their encouragement helped the researcher proceed in writing this paper.

The researcher’s ever supportive and loving mother, Estrella Cereno-Baylon, sisters, and his whole family for their motivation and moral support.

Above all, to Almighty God, for the physical, mental, and spiritual strength He imparted to him and made all these things possible.

REFERENCES

1. Anlacan, R. (2012). Upgrading production and operations management. Business Seminars by BusinessCoach Inc Philippines. http://ww.businesscoachphil.com /upgrading-production-and-operations-management.
2. Chand, S. (2014). Production Management: it’s Meaning, Definition, Function and Scope. Your Article Library. https://www.yourarticlelibrary.com/production-management/production-management-its-meaning-definition-function-and-scope/27925
3. Creswell. (2012). Descriptive Analysis in Education: A Guide for researchers. https://files.eric.ed.gov/fulltext/ED573325.pdf
4. Indeed Editorial Team. (2021). 12 Common Management Challenges and How to Overcome Them. Indeed Career Guide. https://www.indeed.com/career-advice/career- development/management-challenges
5. Juneja, P. (2012). MSG Management  Study  Guide. International Production and Operations Management (IPOM) – Meaning, Nature and Strategies. https://www.managementstudyguide.com/international-production-and-operations-management.htm.
6. Luenendonk, M. (2017). Management practices. Cleverism.https://www.cleverism .com/lexicon/management-practices/.
7. Williams, C. (2007). View of Research Methods. https://Clutejournals.Com/.  https://clutejournals.com/index.php/JBER/article/view/2532/2578
8. 4 functions of management process: Planning, organizing, leading, controlling. iEduNote. (2021). https://www.iedunote.com/function-of-manageent-process
9. Lumen (n.d.) Principles of Management. https//courses.lumenlearning.com/princip Lesmanagement/chapter1-4- planning-organizing-leading-and-controlling/
10. University of Minnesota Libraries Publishing (2015). Principles of Management. https://open.lib.umn.edu/principlesmanagement/chapter/1-5-planning-organiizing-leading-and-controlling-2/
11. Lloyd, D. R., & Aho, D. W. (2020). Planning. The Four Functions of Management.https://fhsu.pressbooks.pub/management/chapter/ planning/
12. TutorialsPoint (n.d.). The P-O-L-C framework.http://www.tutorialspoint.com /management_principles/management_principles_polc_framework.htm
13. Satyendra. (2015). Organizing – A Management Function. IspatGuru. https://www. ispatguru.com/organizing-a-management-function/
14. Pratap, A. (2021). Four functions of management: The POLC Framework. notesmatic. https://notesmatic.com/four-functions-of-management-the-polc-framework/
15. Haque, F. (2020). Importance of leading in Management. The Strategy Watch. https://www.thestrategywatch.com/importance-of-leading-in-management/
16. Bauer, T., Erdogan, B., & Short, J. (2018). Principles of Management. FlatWorld online reader. https://scholar.flatworldknowledge.com/books/31293/fwk-127512-ch01_s03/preview
17. What is controlling? iEduNote. (2019). https://www.iedunote.com/controlling
18. Dipta, W. (2014). ASEAN | One Vision One Identity one community. https://asean.org/wp-content/uploads/2012/05/3.-OVOP-Guidelines.pdf.
19. Son, K. (2010). “Special Features on Starting Policy Implementation by Local Governments: Case Study of the One Village One Product Movement of Oita Prefecture.” Ritsumeikan Law Review 5–6 (333–334): 788–810.
20. One tambon, One product movement. Asian Productivity Organization. (2019). https://www.apo-tokyo.org/resources/p_glossary/one-tambon-one-product-movement/
21. Resource management definition – what is resource management. Shopify. (n.d.). https://www.shopify.com/ph/encyclopedia/resource-management
22. Ortega (2020) P-O-LC framework. https://www.scribd.com/document/469997299/P-O-L-C framework
23. Operational planning. Guthrie-Jensen Consultants, Inc. (2020). https://guthr iejensen.com/operational-planning/
24. Abadesco, E. (2015). An updated definition of organizational development. INQUIRER.net. https://business.inquirer.net/204420/an-updated-definition-of-organizational-development
25. Philippine Women’s University. (2020). LEADING. http://www.coursehero.com /file/76103838/LEADINGdocx/
26. San Luis, G. (2020). The ‘controlling’ function of management. INQUIRER.net. https://business.inquirer.net/291640/the-controlling-function-of-management
27. Yokogawa Philippines. (2015). Production management.https://www.yokogawa.com/ph/solutions/solutions/production-management/.
28. DTI to launch 37 prototypes one town one product. Philippine Retailers Association. (2018). https://www.philretailers.com/dti-to-launch-37-prototypes -one-town-one-product/.
29. House of Representative (2020) https://www.congress.gov.ph/legisdocs/basic_18/HB0772.pdf
30. Legacy Senate (2020). http://legacy.senate.gov.ph/lisdata/3386430679!.pdf.
31. Cervantes, F. M. (2021). ‘One town, one product’ bill gets final House nod. Philippine News Agency. https://www.pna.gov.ph/articles/1142619.
32. DBM (2018) Lates issuances. https://www.dbm.gov.ph/wp-content/uploads/issuances.html
33. Bohol Bloggers Collective. (2018). https://www.BoholBloggersCollective/
34. Philippine Retailers Association. (2018). https://www.philretailers.com/dti-to-launch-37-prototypes-one-town-one-product/
35. Mendiola, R., Oriel, R., Soriano, P. E., &   de Venecia, J., Jr. (2020). One Town, one product program all set for 2020
36. Ndirangu, & Rotich. (2018). The effect of management functions as a strategy for organizational effectiveness: A case of small and medium enterprises in Nairobi County, Kenya. Strategic Journal of Business & Change Management.https://strategicjournals.com/index.php/journal/article/view/649/663
37. Kapur. (2018). Managerial functions within the organization. https://www.resear chgate.net/publication/323825490_Managerial_Functions_within_the_Organization
38. Dedeekova, N. (2020). Control, controlling and its objectives in the organization. SHS Web of Conferences. https://www.shs-conferences.org/articles/shs conf/abs/2020/11/shsconf_appsconf2020_01009/shsconf_appsconf2020_01009.html
39. Bryson, A., & Forth, J. (2018). The impact of management practices on SME performance, by Forth, John; IZA Discussion Papers. https://ideas.repec.org/. p/iza/izadps/dp11399.html.
40. Bloom, N., Brynjolfsson, E., Foster, L., Jarmin, R., Patnaik, M., Saporta-Eksten, I., & Van Reenen, J. (2019). What drives differences in management practices? American Economic Review. https://pubs.aeaweb.org/doi/10.1257/aer.2017
41. Sikdar, A., & Pereira, V. (2018). Business and Management Practices in South Asia – A Prelude: A Collection of Case Studies, 1–11. https://doi.org/10.1007 /978-981-13-1399-8_1
42. Gosnell, G. K., List, J. A., & Metcalfe, R. D. (2020). The impact of management practices on employee productivity: A field experiment with airline captains. Journal of Political Economy.https://www.journals.uchicago.edu/doi/10 .1086/705375
43. Boiral, O., Brotherton, M.-C., Rivaud, L., & Guillaumie, L. (2021). Organizations’ management of the COVID-19 pandemic: A scoping review of business articles. MDPI.  https://doi.org/10.3390/su13073993
44. Ndione, J. S., & Suzuki, K.-I. (1970). beyond the one village one product (OVOP) concept through Design Thinking Approach: Semantic scholar. [PDF] Beyond the One Village One Product (OVOP) Concept through Design Thinking Approach | Semantic Scholar. https://ww.semanticsscholar.org/paper/Beyond-the-One-Village-One-Product(OVOP)ConceptNdioneSuzuki/2e0c5 977c2904b0b876804dbbc16dd9000ffbb9c.
45. Thanh, L. H., Nhat, L. T., Dang, H. N., Ho, T. M., & Lebailly, P. (2018). One village one product (ovop)—a rural development strategy and the early adaption in Vietnam, the case of Quang Ninh Province. Sustainability, 10(12), 4485. https://doi.org/10.3390/su10124485
46. Puutio, A. (2020), IPRs, creative economies and localized development initiatives, ARTNeT Working Paper Series, No. 202, December, 2020, Bangkok, ESCAP.
47. Noble, V. (2018). Mobilities of the one-product policy from Japan to Thailand: A critical policy study of OVOP and OTOP. Taylor & Francis. https://www.tandfonline.com/doi/abs/10.1080/21622671.2018.1511463.
48. Widiyanti, A. (2018). A comparative study: One village one product (OVOP) as an engine of local economic development in Japan and Indonesia. Jurnal Litbang Sukowati : Media Penelitian Dan Pengembangan, 1(2), 80–94. https://doi.org/10.32630/sukowati.v1i2.25
49. Almase, V. S. (2017). Business Strategies of Micro Manufacturing Enterprises in the province of Quezon. KnE Social Sciences https://knepublishing.com/ind ex.php/Kne-Social/article/view/2445.
50. International Trade Centre (2020). Promoting SME Competitiveness in the Philippines: Compete, Connect and Change to Build Resilience to Crises. ITC, Geneva.
51. Barbosa, R. (2021). Financial management practices of micro and small enterprises in Tanuan Leyte, Philippines. https://jounal.evsu.edu.php /index.php/tjertm/article/view/261/94
52. Anoos, G., Etcuban, Dinauanao, Macugay, & Velita. (2020). Financial Management of micro, small, and Medium Enterprises in Cebu, Philippines. International Journal of Small Business and Entrepreneurship Research, 8(1), 53–76. https://doi.org/10.37745/ejsber.vol8.no.1p53-76.2020
53. Gallardo, G. (2017). Financial management practices of small and medium enterprises in Nueva Ecija. Animo Repository. https://animorespository.dlsu .edu.ph/etd_masteral/5372/
54. Capiña, M. V. (2021). Impact of management practices on micro and small enterprise (mses) performance in Marinduque, Philippines. Journal of Social Entrepreneurship Theory and Practice, 1(1), 84–97. https://doi.org/10 31098/jsetp.v1i1.561
55. Duodu, E., Gubalane, J. P., & Nudalo, S. B. (2019). The influence of organizing practices on organizational performance of five selected small, medium and large business in the Philippines. Abstract Proceedings International Scholars Conference. https://doi.org/10.35974/isc.v7i1.959
56. Shinozaki, S., & Rao, L. N. (2021). Covid-19 impact on micro, small, and medium-sized enterprises under the lockdown: Evidence from a rapid survey in the Philippines. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3807080
57. Soriano, J. D. (2019). Key success factors and entrepreneurial orientations of … http://buscompress.com/uploads/3/4/9/8/34980536/riber_8-s2_04_h18-053_38-83.pdf.
58. Tabisola, C. T. (2021). Socio Economic Impact of one-town-one-product (OTOP) entrepreneurial program in region 1 Philippines. Semantic Scholar https://www.semanticscholar.org/paper/Socio-economic-impact-of-One-Town-One-Product-in-1-Tabisola
59. Landocan. (2018). Effect of the OTOP on coffee production as a means to improve the economy of Kibungan. Benguet https;//www.scrbd.com/document /371269000/Thesis-Final-Fianza
60. Lim, T. P. (2021). United Nations Industrial Development Organization. UNIDO. Retrieved May 25, 2022, from https://www.unido.org/
61. Parilla, E. (2020). Economic promotion through one-town one product. International Journal of Academic Research in Business and Social Sciences, 3(7). https://doi.org/10.6007/ijarbss/v3-i7/75
62. Jones. (1995). Principles of Management. FlatWorld online reader. https://scholar.flatworldknowledge.com/books/31293/fwk127512ch01_s03/preview
63. ScienceDirect. (2017). Handbook of Cannabis and Related Pathologies https://ww. w.sciencedirect.com/book/9780128007563/handbook-of-cannabis-and-related-pathologies
64. Bhasin, H. (2019). Controlling in management – meaning, process, and examples. Marketing91.https://www.marketing91.com/controlling-in-management/
65. What are the 4 basic functions of management? Indeed, Career Guide. (2021). https://www.indeed.com/career-advice/career-development/basic-functions-of-management
66. Dictionary.com. (2021). Entrepreneur definition & meaning. Dictionary.com. https://www.dictionary.com/browse/entrepreneur.
67. Chand. (2014). Production management: It’s meaning, definition, function and scope. Your Article Library. https://www.yourarticlelibrary.com/production-management/production-management-its-meaning-definition-function-and scope/27925.
68. IGI Global. (2022). What is management practices. https://www.igi-global.com/dicti onary/management-practices-in-chaotic-environments-of-smes-in-bogota/1 7783
69. Billionz, N., & Harres, W. L. N. (2021). What is organizing? definition, characteristics, process and importance. Business Jargons https://businessja. rgons.com/organizing.html
70. Thorn, R. (2012) Defining the Functions of Management, Huffington Post, http://www.huffingtonpost.com/rayannethorn/functionsofmanagement.html