THE MEDIATING ROLE OF SUPPLY CHAIN MANAGEMENT PRACTICES BETWEEN THE RELATIONSHIP OF FINANCIAL MANAGEMENT PRACTICES AND PERFORMANCE OF SMALL ENTERPRISES IN BANANA INDUSTRY

Amidst the problems faced by small banana enterprises in sustaining competitiveness due to limited financial capacity and inefficient supply chain systems, effective financial management that improves performance through enhanced supply chain management practices can direct policymakers and industry stakeholders in developing targeted strategies to reinforce financial and operational efficiency, promoting sustainable growth of Small Medium Enterprises in the Davao Del Norte. However, lack of comprehensive research integrating financial management practices, supply chain management practices, and performance into a single mediating model, particularly within the context of small banana enterprises. To determine the mediating role of supply chain management practices in the relationship between financial management practices and the performance of small enterprises. A descriptive-correlational approach was used to survey 100 from the owners, managers and supervisors among banana industry in Davao Region. Data analysis involved calculating mean scores, Standard Deviation, Pearson r, and Structural Equation Modeling (Mediation Analysis and Path Plot) were the statistical tools utilized to analyze the data. Findings of the study showed that the level of performance of small enterprises, financial management practices and supply chain management were high. Additionally, a significant and positive relationship was established between financial management practices and supply chain management; performance of small enterprises and financial management practices; as well as supply chain management and performance of small enterprises. Results further revealed that supply chain management partially mediate the relationship between financial management practices and performance of small enterprises. Small banana enterprises are advised to reinforce built-in financial and supply chain administration plans, with the help of specific government activities, to maintain a high level of performance and to increase the level of competitiveness in the long run.