Published
2025-02-20
Section
Research Articles
License
Copyright (c) 2025 Emma Q. Tenedero, Joel R. Sintos, Joy B. Araza

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
The journal adopts the Attribution-NonCommercial 4.0 International (CC BY-NC 4.0), which means that anyone can reuse and redistribute the materials for non-commercial purposes as long as you follow the license terms and the original source is properly cited.
Author(s) shall retain the copyright of their work and grant the Journal/Publisher rights for the first publication with the work concurrently licensed since 2023 Vol.8 No.2.
Under this license, author(s) will allow third parties to download, reuse, reprint, modify, distribute and/or copy the content under the condition that the authors are given credit. No permission is required from the authors or the publisher.
This broad license intends to facilitate free access, as well as the unrestricted use of original works of all types. This ensures that the published work is freely and openly available in perpetuity.
By providing open access, the following benefits are brought about:
- Higher Visibility, Availability and Citations-free and unlimited accessibility of the publication over the internet without any restrictions increases citation of the article.
- Ease of search-publications are easily searchable in search engines and indexing databases.
- Rapid Publication – accepted papers are immediately published online.
- Available for free download immediately after publication at https://esp.as-pub.com/index.php/ESP
Copyright Statement
1.The authors certify that the submitted manuscripts are original works, do not infringe the rights of others, are free from academic misconduct and confidentiality issues, and that there are no disputes over the authorship scheme of the collaborative articles. In case of infringement, academic misconduct and confidentiality issues, as well as disputes over the authorship scheme, all responsibilities will be borne by the authors.
2. The author agrees to grant the Editorial Office of Environment and Social Psychology a licence to use the reproduction right, distribution right, information network dissemination right, performance right, translation right, and compilation right of the submitted manuscript, including the work as a whole, as well as the diagrams, tables, abstracts, and any other parts that can be extracted from the work and used in accordance with the characteristics of the journal. The Editorial Board of Environment and Social Psychology has the right to use and sub-licence the above mentioned works for wide dissemination in print, electronic and online versions, and, in accordance with the characteristics of the periodical, for the period of legal protection of the property right of the copyright in the work, and for the territorial scope of the work throughout the world.
3. The authors are entitled to the copyright of their works under the relevant laws of Singapore, provided that they do not exercise their rights in a manner prejudicial to the interests of the Journal.
About Licence
Environment and Social Psychology is an open access journal and all published work is available under the Creative Commons Licence, Authors shall retain copyright of their work and grant the journal/publisher the right of first publication, and their work shall be licensed under the Attribution-NonCommercial 4.0 International (CC BY-NC 4.0).
Under this licence, the author grants permission to third parties to download, reuse, reprint, modify, distribute and/or copy the content with attribution to the author. No permission from the author or publisher is required.
This broad licence is intended to facilitate free access to and unrestricted use of original works of all kinds. This ensures that published works remain free and accessible in perpetuity. Submitted manuscripts, once accepted, are immediately available to the public and permanently accessible free of charge on the journal’s official website (https://esp.as-pub.com/index.php/ESP). Allowing users to read, download, copy, print, search for or link to the full text of the article, or use it for other legal purposes. However, the use of the work must retain the author's signature, be limited to non-commercial purposes, and not be interpretative.
Click to download <Agreement on the Licence for the Use of Copyright on Environmental and Social Psychology>.
How to Cite
Working capital management practices of MSMEs in Samar, Philippines towards triple bottom line sustainability
Emma Q. Tenedero
College of Arts and Sciences, Samar State University, Catbalogan City, Samar, 6700, Philippines
Joel R. Sintos
College of Arts and Sciences, Samar State University, Catbalogan City, Samar, 6700, Philippines
Joy B. Araza
College of Arts and Sciences, Samar State University, Catbalogan City, Samar, 6700, Philippines
DOI: https://doi.org/10.59429/esp.v10i2.3271
Keywords: financial management, MSMEs, sustainability, working capital management
Abstract
Business practices are crucial for the success and sustainability of micro, small, and medium enterprises (MSMEs). Effective business management, including working capital management, helps MSMEs maintain liquidity, support growth, and navigate financial challenges. Proper allocation of resources, such as cash flow management, access to funding, inventory, and financial planning, ensures that MSMEs can meet day-to-day operational costs and capitalize on opportunities for expansion. This paper analyzed the working capital management practices of MSMEs in Samar, Philippines and how this can be linked to their economical, social, and environmental sustainability as a local business. Business owners (n=388) from Samar, Philippines were purposively sampled to participate in the study. Findings indicated low sustainability among MSMEs in Samar, Philippines, highlighting the lack of focus on economic, social, and environmental sustainability, with businesses showing poor performance in all three dimensions of the Triple Bottom Line (TBL). Likewise, their financial performance for cash management and inventory management was underwhelming. Despite the potential for working capital management to improve sustainability, MSMEs in Samar struggle with effective implementation. Nevertheless, this paper emphasized the disparity between MSMEs and larger corporations in terms of sustainability practices and calls for increased awareness and strategic efforts to integrate working capital management and sustainability into MSMEs’ operations, particularly in sectors like agriculture, trade, and food services.
References
[1]. 1.Atalla, A. D. G., Mostafa, W. H., & Ali, M. S. S. (2024). Inspiring nurses’ sustainability mindset: Exploring the Mediating Role of Organizational Culture on the relationship between Pro-social Leader behaviors and nurses’ sustainability consciousness. BMC nursing, 23(1), 675.
[2]. 2.Doppelt, B. (2017). Leading change toward sustainability: A change-management guide for business, government and civil society. Routledge.
[3]. 3.Ismail, I. J. (2025). Transforming small business ventures for a greener tomorrow: the interplay between green transformational leadership, organizational green culture, and environmental sustainability. Cogent Social Sciences, 11(1), 2441400.
[4]. 4.Klingenberg, B., & Rothberg, H. N. (2022, August). Why knowledge management for sustainability needs a sustainability mindset. In European Conference on Knowledge Management (Vol. 23, No. 1, pp. 646-653).
[5]. 5.Oikawa, K., Iwasaki, F., Sawada, Y., & Shinozaki, S. (2025). Unintended consequences of business digitalization among MSMEs during the COVID-19 pandemic: The case of the Philippines (No. 767). ADB Economics Working Paper Series.
[6]. 6.Samar, E. D. (2011). Revisiting the SMEs in the Philippines: challenges and issues. Philosophy of Doctorate, 1-16.
[7]. 7.Department of Trade and Industry (DTI, 2023). 2023 Philippine MSME Statistics. https://www.dti.gov.ph/resources/msme-statistics/
[8]. 8.Miranda, A. T., & Miranda, J. L. F. (2018). Status and conditions of small-and medium-sized enterprises as predictors in empowering rural communities in Samar Island, Philippines. Asia Pacific Journal of Innovation and Entrepreneurship, 12(1), 105-119.
[9]. 9.Patimo, D., & Dollado, R. (2021). ONLINE MARKETING OF SMALL AND MEDIUM ENTERPRISES IN SAMAR, PHILIPPINES. International Journal of Business, Law, and Education, 2(1), 14-28.
[10]. 10.Chua, K. T., & Hae-Young, B. (2024). Impact of sustainability reporting initiatives on the financial performance of Philippine listed companies. Environmental Economics, 15(1), 130.
[11]. 11.Gulo, M. K. P., Marshanda, M., Rahman, F. N., Lestari, I., & Azzahra, A. S. (2025). The Effect Of Working Capital And Liquidity On The Profitability Of Companies In The Infrastructure Sector That Are Listed On The Bei In The Period 2020-2023. International Journal of Economic Research and Financial Accounting, 3(2).
[12]. 12.Tonial, G., Cassol, A., Selig, P. M., & Giugliani, E. (2019). Intellectual capital management and sustainability activities in Brazilian organizations: A case study. Intellectual Capital Management as a Driver of Sustainability: Perspectives for Organizations and Society, 119-138.
[13]. 13.Nobanee, H., & Ellili, N. (2017). Does Risk Disclosure Reporting Quality Reduce Credit Risk?. Available at SSRN 2971474.
[14]. 14.Alshehhi, A., Nobanee, H., & Khare, N. (2018). The impact of sustainability practices on corporate financial performance: Literature trends and future research potential. Sustainability, 10(2), 494.
[15]. 15.Shepherd, D. A., Saade, F. P., & Wincent, J. (2020). How to circumvent adversity? Refugee-entrepreneurs' resilience in the face of substantial and persistent adversity. Journal of Business Venturing, 35(4), 105940.
[16]. 16.Ekpo, N. B., Etukafia, N., & Udofot, P. O. (2017). Finance manager and the finance function in business sustainability. International Journal of Business, Marketing and Management, 2(1), 31-38.
[17]. 17.Al Breiki, M., & Nobanee, H. (2019). The role of financial management in promoting sustainable business practices and development. Available at SSRN 3472404.
[18]. 18.Imhanzenobe, J. O. (2020). Managers’ financial practices and financial sustainability of Nigerian manufacturing companies: Which ratios matter most?. Cogent Economics & Finance, 8(1), 1724241.
[19]. 19.Adams, C., Frost, G., & Webber, W. (2013). Triple bottom line: A review of the literature. The triple bottom line, 17-25.
[20]. 20.Slaper, T. F., & Hall, T. J. (2011). The triple bottom line: What is it and how does it work. Indiana business review, 86(1), 4-8.
[21]. 21.Myeza, Z. (2017). The effects of waste management on profitability in a flexible packaging company (Doctoral dissertation).
[22]. 22.Hamzah, R. S., Gozali, E. O. D., & Sitepu, C. D. S. (2024). Enhancing MSMEs Financial Resilience: Integrating Working Capital Management and Sustainability Reporting. MAKSIMUM: Media Akuntansi Universitas Muhammadiyah Semarang, 14(2), 187-203.
[23]. 23.Dweck, C. S. (2006). Mindset: The new psychology of success. Random house.
[24]. 24.Raworth, K. (2018). Doughnut economics: Seven ways to think like a 21st century economist. Chelsea Green Publishing.
[25]. 25.Arslan, A., Al Kharusi, S., Hussain, S. M., & Alo, O. (2023). Sustainable entrepreneurship development in Oman: a multi-stakeholder qualitative study. International Journal of Organizational Analysis, 31(8), 35-59.
[26]. 26.Tollin, K., & Vej, J. (2012). Sustainability in business: understanding meanings, triggers and enablers. Journal of Strategic Marketing, 20(7), 625-641.
[27]. 27.Ehrenfield, J.R. (2008), Sustainability by Design: A Subversive Strategy for Transforming Our Consumer Culture. Yale University Press, London.
[28]. 28.Gond, J. P., El Akremi, A., Swaen, V., & Babu, N. (2017). The psychological microfoundations of corporate social responsibility: A person‐centric systematic review. Journal of Organizational Behavior, 38(2), 225-246.
[29]. 29.Jones, H. E., Chesley, J. A., & Egan, T. (2020). Helping leaders grow up: Vertical leadership development in practice. The journal of values-based leadership, 13(1), 8.
[30]. 30.Akterujjaman, S. M., Blaak, L., Ali, M. I., & Nijhof, A. (2022). Organizational citizenship behavior for the environment: a management perspective. International Journal of Organizational Analysis, 30(6), 1783-1802.
[31]. 31.Ulfah, A. Y., Ariyani, I., & Khurniawan, A. W. (2024). Implementation of Sustainability Mindset in MSMEs-A Qualitative Study. Jurnal Indonesia Sosial Teknologi, 5(7), 3314-3322.
[32]. 32.Dereudre, C. M. (2024). Shifting the Marketing Mindset: A Toolkit To Drive Sustainable Transformation. Taylor & Francis.
[33]. 33.Varriale, V., Cammarano, A., Michelino, F., & Caputo, M. (2023). Industry 5.0 and triple bottom line approach in supply chain management: the state-of-the-art. Sustainability, 15(7), 5712.
[34]. 34.Yun, G., Yalcin, M. G., Hales, D. N., & Kwon, H. Y. (2019). Interactions in sustainable supply chain management: a framework review. The International Journal of Logistics Management, 30(1), 140-173.
[35]. 35.He, Q., Gallear, D., Ghobadian, A., & Ramanathan, R. (2019). Managing knowledge in supply chains: A catalyst to triple bottom line sustainability. Production Planning & Control, 30(5-6), 448-463.
[36]. 36.Gu, W., & Wang, J. (2022). Research on index construction of sustainable entrepreneurship and its impact on economic growth. Journal of Business Research, 142, 266-276.
[37]. 37.Johnson, K., Hays, C., Center, H., & Daley, C. (2004). Building capacity and sustainable prevention innovations: a sustainability planning model. Evaluation and program planning, 27(2), 135-149.
[38]. 38.Asraf, A., & Supriaddin, N. (2024). Triple Bottom Line on Business Performance: Examining the Moderating Role of Managerial Competencies. Indo-Fintech Intellectuals: Journal of Economics and Business, 4(5), 1767-1777.
[39]. 39.Maroun, W., Ecim, D., & Cerbone, D. (2023). Refining integrated thinking. Sustainability Accounting, Management and Policy Journal, 14(7), 1-25.
[40]. 40.Purnama, Y. I. (2024). Implementation of the triple bottom line concept to improve sustainable marketing performance. Journal of Economics and Business Letters, 4(2), 40-50.
[41]. 41.Mathur, K., & Berwa, A. (2017). Sustainable competitiveness: Redefining the future with technology and innovation. Journal of Sustainable Finance & Investment, 7(3), 290-306.
[42]. 42.Usmani, M. S., Wang, J., Ahmad, N., Ullah, Z., Iqbal, M., & Ismail, M. (2022). Establishing a corporate social responsibility implementation model for promoting sustainability in the food sector: a hybrid approach of expert mining and ISM–MICMAC. Environmental Science and Pollution Research, 1-22.
[43]. 43.Gregory, R. P., Stead, J. G., & Stead, E. (2021). The global pricing of environmental, social, and governance (ESG) criteria. Journal of sustainable finance & investment, 11(4), 310-329.
[44]. 44.Chua, K. T., & Hae-Young, B. (2024). Impact of sustainability reporting initiatives on the financial performance of Philippine listed companies. Environmental Economics, 15(1), 130.
[45]. 45.Roxas, B., Ashill, N., & Chadee, D. (2017). Effects of entrepreneurial and environmental sustainability orientations on firm performance: A study of small businesses in the Philippines. Journal of Small Business Management, 55, 163-178.
[46]. 46.Somova, H. (2024). Gauging Philippine SMEs’ readiness to adopt sustainable business practices. Available at SSRN 4696297.
[47]. 47.Birsan, A. (2024). Challenges and Practical Approaches to Implementing Triple Bottom Line Strategies: From Theory to Practice. Metropolia University of Applied Sciences (Bachelor Thesis).
[48]. 48.Lewis, A., & Smith, J. (2023). Beyond Profit: Measuring and Maximizing the Triple Bottom Line in Business Performance. Research Studies of Business, 1(01), 49-58.
[49]. 49.Habib, A. M., & Dalwai, T. (2024). Does the efficiency of a firm’s intellectual capital and working capital management affect its performance?. Journal of the Knowledge Economy, 15(1), 3202-3238.
[50]. 50.Gill, A., Biger, N., & Mathur, N. (2010). The relationship between working capital management and profitability: Evidence from the United States. Business and economics journal, 10(1), 1-9.
[51]. 51.Said, R., Hj Zainuddin, Y., & Haron, H. (2009). The relationship between corporate social responsibility disclosure and corporate governance characteristics in Malaysian public listed companies. Social responsibility journal, 5(2), 212-226.
[52]. 52.Khan, I. S., Ahmad, M. O., & Majava, J. (2021). Industry 4.0 and sustainable development: A systematic mapping of triple bottom line, Circular Economy and Sustainable Business Models perspectives. Journal of Cleaner Production, 297, 126655.
[53]. 53.Owino, T. O. (2023). MODERATING ROLE OF FINANCIAL LITERACY ON THE RELATIONSHIP BETWEEN CASH MANAGEMENT PRACTICES AND FINANCIAL PERFORMANCE OF MICRO, SMALL AND MEDIUM ENTERPRISES IN ELDORET TOWN, KENYA (Doctoral dissertation, University of Eldoret).
[54]. 54.Klimek, D., & Jędrych, E. (2023). Descriptive Method for Sustainable Corporate Capital Management.
[55]. 55.Watson, R. (2015). Quantitative research. Nursing standard, 29(31).
[56]. 56.Lowhorn, G. L. (2007). Qualitative and quantitative research: How to choose the best design. In Academic Business World International Conference. Nashville, Tennessee.
[57]. 57.Creswell, J. W., & Creswell, J. D. (2005). Mixed methods research: Developments, debates, and dilemmas. Research in organizations: Foundations and methods of inquiry, 2, 315-326.
[58]. 58.PhilAtlas. (2024). Samar. PhilAtlas[Online]. https://www.philatlas.com/visayas/r08/samar.html
[59]. 59.Aquino, A. C. (2020). Meet the Hardworking Small-Business People Behind Samar's Native Delicacies. Esquire[Online]. https://www.esquiremag.ph/food-and-drink/food/samar-msmes-a2504-20200821-lfrm?s=79pa50k65epae1001rlvrchoso
[60]. 60.Barratt, M. J., Ferris, J. A., & Lenton, S. (2015). Hidden populations, online purposive sampling, and external validity: Taking off the blindfold. Field methods, 27(1), 3-21.
[61]. 61.Barratt, M. J., & Lenton, S. (2015). Representativeness of online purposive sampling with Australian cannabis cultivators. International Journal of Drug Policy, 26(3), 323-326.
[62]. 62.Etikan, I., Musa, S. A., & Alkassim, R. S. (2016). Comparison of convenience sampling and purposive sampling. American journal of theoretical and applied statistics, 5(1), 1-4.
[63]. 63.Nemoto, T., & Beglar, D. (2014). Likert-scale questionnaires. In JALT 2013 conference proceedings, 108(1), 1-6.
[64]. 64.Chimi, C. J., & Russell, D. L. (2009). The Likert scale: A proposal for improvement using quasi-continuous variables. In Information Systems Education Conference, Washington, DC (Vol. 26, pp. 1-10).
[65]. 65.Bolarinwa, O. A. (2015). Principles and methods of validity and reliability testing of questionnaires used in social and health science researches. Nigerian postgraduate medical journal, 22(4), 195-201.
[66]. 66.Fink, A., & Litwin, M. S. (1995). How to measure survey reliability and validity (Vol. 7). Sage.
[67]. 67.Bujang, M. A., Omar, E. D., & Baharum, N. A. (2018). A review on sample size determination for Cronbach’s alpha test: a simple guide for researchers. The Malaysian journal of medical sciences: MJMS, 25(6), 85.
[68]. 68.Tsang, S., Royse, C. F., & Terkawi, A. S. (2017). Guidelines for developing, translating, and validating a questionnaire in perioperative and pain medicine. Saudi journal of anaesthesia, 11(Suppl 1), S80-S89.
[69]. 69.Sedgwick, P. (2012). Pearson’s correlation coefficient. Bmj, 345.
[70]. 70.Elkington, J. (1998). Partnerships from cannibals with forks: The triple bottom line of 21st‐century business. Environmental quality management, 8(1), 37-51.
[71]. 71.Arowoshegbe, A. O., Emmanuel, U., & Gina, A. (2016). Sustainability and triple bottom line: An overview of two interrelated concepts. Igbinedion University Journal of Accounting, 2(16), 88-126.
[72]. 72.Lee, Y. C., & Mao, P. C. (2015). Survivors of organizational change: A resource perspective. Business and Management Studies, 1(2), 1-5.
[73]. 73.Żak, A. (2015). Triple bottom line concept in theory and practice. Social Responsibility of Organizations Directions of Changes, 387(1), 251-264.
[74]. 74.Monika, S., & Kramer, R. (2024). Sustainability Reporting in the Philippines: A Study of Regulations, Responses, and Challenges among SMEs. Diponegoro Journal of Accounting, 13(4).
[75]. 75.Daghighi, A., & Shoushtari, F. (2023). Toward Sustainability of Supply Chain by Applying Blockchain Technology. International journal of industrial engineering and operational research, 5(2), 60-72.
[76]. 76.Agu, E. E., Iyelolu, T. V., Idemudia, C., & Ijomah, T. I. (2024). Exploring the relationship between sustainable business practices and increased brand loyalty. International Journal of Management & Entrepreneurship Research, 6(8), 2463-2475.
[77]. 77.Lamm, E., Tosti-Kharas, J., & King, C. E. (2015). Empowering employee sustainability: Perceived organizational support toward the environment. Journal of Business Ethics, 128, 207-220.
[78]. 78.Bresciani, S., Ferraris, A., Santoro, G., & Nilsen, H. R. (2016). Wine sector: companies' performance and green economy as a means of societal marketing. Journal of Promotion Management, 22(2), 251-267.
[79]. 79.Ershadi, M., Hajiba, Z., Safa, M., & Moghadam, H. (2024). The Effect of sustainability reporting on financial performance. Iranian Journal of Management Studies, 17(3), 967-982.
[80]. 80.Arianpoor, A., Salehi, M., & Daroudi, F. (2023). Nonfinancial sustainability reporting, management legitimate authority and enterprise value. Social Responsibility Journal, 19(10), 1900-1916.
[81]. 81.Waddock, S. A., & Graves, S. B. (1994). Industry performance and investment in R&D and capital goods. The Journal of High Technology Management Research, 5(1), 1-17.
[82]. 82.Waddock, S. A., & Graves, S. B. (1997). The corporate social performance–financial performance link. Strategic management journal, 18(4), 303-319.
[83]. 83.Paderna, R. D., Bravo, P. G. C., Ramirez, A. G. H., Reyes, R. A. A., & Villanueva, J. V. (2020). Testing a Sustainability Model for Philippine Small and Medium Enterprises (SMEs) through Values-driven Agripreneurship: Perspectives from a Major Agrifeeds Producer in Bulacan Province, Philippines. Review of Integrative Business and Economics Research, 9, 242-277.