DIGITAL SOLUTIONS AND ECO-FRIENDLY PRACTICES AS DRIVERS OF BUSINESS COMPETITIVENESS AMONG MSMES IN CAGAYAN DE ORO, PHILIPPINES

This study examines the relationship between digital solutions and eco-friendly practices and their influence on business competitiveness. Using the Resource-Based View (RBV) Theory and Michael Porter’s Competitive Advantage Theory, the researcher evaluates how the adoption of digital marketing solutions and eco-friendly practices enhances key areas such as market positioning, financial performance, and operational efficiency, thereby strengthening overall competitiveness. Data were collected from MSME owners and representatives in Cagayan de Oro City through surveys and interviews and were analyzed using statistical methods. Additionally, factor analysis was applied to the survey instrument to ensure the validity and reliability of the constructs measured. Findings indicate that strong digital adoption in sales and marketing, combined with eco-friendly practices, enhances business competitiveness, particularly in market positioning, financial performance, and operational efficiency. Results of the adjusted R-squared value of 96% indicates that the model explains a substantial proportion of the variation in business competitiveness. The qualitative findings highlight two key themes sustaining MSME competitiveness: adaptive and ethical strategies for sustainability and customer-centric innovation and digital transformation. These findings affirm that MSMEs that actively integrate digital innovation and environmental responsibility are better positioned for sustainable growth and long-term relevance. In light of these findings, Future research could incorporate participant feedback and expand the analysis to explore innovative, evidence-based approaches linking digital transformation and sustainability to MSME competitiveness and growth. Collaborations with government agencies, industry stakeholders, and MSME organizations may also provide comprehensive insights to address emerging challenges and support the economic development of Cagayan de Oro City.