A Structural Equation Model on Performance of Small and Medium Enterprises in Davao Region, Philippines

He purpose of this study was to create a causal model of performance of small and medium enterprises (SMEs) in Davao Region, Philippines as influenced by entrepreneurial marketing, customer focus and knowledge management. The research design used was descriptive-causal design through structural equation modeling among 400 SME employees with at least managerial or supervisory positions purposively selected. Findings show that entrepreneurial marketing, customer focus and knowledge management positively correlate and significantly influence the performance of SMEs. The model indicates that performance of SMEs with indicatorsemployee satisfaction and firm performance are best anchored on strong evidence of entrepreneurial marketing as supported by indicators pro-active orientation and risk management;and customer focus with ultimately one indicator namely organizational customer orientation. In conclusion, the final model illustrated the direct causal relationships of entrepreneurial marketing and customer focus and was found to be the best fit model on performance of SMEs in the region.