Business Growth Behavior and Product Innovation Among Selected Food Processors in Davao City Vicente E. Montaño, DBA U i University it off Mi Mindanao, d Bolton B lt St., Davao City

Introduction • In many ways, innovation is the single most important p building g block of competitive advantage. • It directly and indirectly affects all the building blocks of competitive advantage.

• The main purpose of this study was to determine the significant g relationship p between areas of product innovations and business growth among food processors in Davao City. • To determine iff there is a significant f relationship p between business g growth behavior and product innovation.

Method • The respondents of the study were 40 the managers of different food processing firms in Davao City. • The instrument used in the study y was a questionnaire: business growth behavior among food processors, respondent propensityy for risk and the pricing strategy of an owner/manager. • The study was conducted from 2007 to 2008 in Davao City

Results & Discussion • Food processors in Davao are high-risk takers,, have good g decision making g skills and adopting long-term profit maximizing strategy. strategy • One of the strong areas of food processors in processing & packaging is the innovation of basic raw materials of their processed food product

• It can be implied that food processors in Davao recognize g incentives to engage g g in product development that can enhance the innovativeness of their food processing. processing • Innovation among food processors in Davao stem from f their quest for f exploration p and exploitation. p

• The growth of food processing business in Davao is characterized with problem p solving, propensity for success, confidence learning from mistakes. confidence, mistakes • These findings indicate that the motivation to grow has to be complemented with a willingness g to assume risk in order for the small business to grow.

• F Food d processors iin D Davao hi highly hl d desire i tto interact with suppliers, customers, public institutions and industry associations. associations • This takes place for the purpose of gathering information about technologies and markets markets, and also for obtaining various other inputs. • The desire of food processors to innovation in storage & transportation and preparation & use by consumers can be caused by both risk taking and profit making and vice versa.

Recommendations • Th The governmentt th through h th the DTI and d llocall government should further enhance the quality and productivity quest of food processors in Davao as this can build more into their global competitiveness. ood processors p ocesso s sshould ou d atte attend d se seminars as • Food and conferences to equally understand the product development could only be as good as their process development