Digital Infrastructure Utilization and the Competitiveness of Micro, Small, and Medium Enterprises (MSMEs) in Bukidnon, Philippines: A Correlational Study

Abstract

This study examined the relationship between digital infrastructure utilization and the competitiveness of Micro, Small, and Medium Enterprises (MSMEs) in Bukidnon, Philippines, employing a descriptive-correlational research design. Data were gathered from 396 MSME owners and managers selected through stratified random sampling, using a validated survey instrument (Cronbach's α = 0.963). Digital infrastructure utilization was measured across six indicators—e-commerce, digital payments, mobile banking, lending and credit technology, artificial intelligence and automation, and 5G and IoT—while MSME competitiveness was assessed through innovation capability, operational efficiency, and market responsiveness. Results showed that MSMEs were predominantly young, micro-scale, sole proprietorships concentrated in wholesale and retail trade. Digital infrastructure utilization was found to be utilized overall, with digital payments, 5G and IoT, and e-commerce more fully utilized than artificial intelligence and automation, and lending and credit technology. MSMEs rated themselves competitive, with operational efficiency scoring highest and innovation capability lowest. Pearson r analysis revealed a significant, strong positive correlation between digital infrastructure utilization and MSME competitiveness (r = .676, p < .01), with all six indicators showing significant positive relationships; e-commerce demonstrated the strongest association, while lending and credit technology showed the weakest. These findings affirm that digital infrastructure utilization is a significant correlate of MSME competitiveness, though its contribution varies by technology type. The study recommends targeted interventions to strengthen innovation capacity and expand access to underutilized technologies, particularly digital lending platforms, to help MSMEs in Bukidnon achieve more balanced and sustained competitiveness.