Assessment of Record Keeping Practices among Ambulant Vendors in

Tagum City: Basis for Intervention Scheme

A Thesis
Presented to
The Thesis Committee, UM Tagum College
Department of Accounting Education

In Partial Fulfilment
Of the Requirements for the Degree
Bachelor of Science in Accounting Technology

DOREEN JANE C. ALFON

ELJOHN A. AROMA
CHRISTIAN ROY A. TADINA

October 2018
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Chapter 1

INTRODUCTION

Rationale

Record keeping is important in any small or large enterprise. Records

of a company function like blood in the human body; there is no life without it,

it is exactly the same for business regardless of the means of transaction.

Records keeping practices aids the management and contro ofl business

records over their life cycle, from their creation and distribution, through their

filing and use, and eventually through their final disposition or permanent

retention. Records management is more than record keeping, storage, and

record disposal (Dawuud, 2015).

In Tanzania, Small and Medium Enterprises (SMEs) play an essential

role in contributing to economic growth and development. Managing business

records is an essential requirement for the success of these SMEs. Good

record keeping for instance enables entrepreneurs to make appropriate

business decisions, ensure survival of the business and also monitor and

evaluate business success. Since establishments in this country have shown

unsatisfactory record keeping practices, this affects their business

performance and productivity. The evidence from the previous studies

indicates that most of the SMEs in Tanzania run their businesses without

proper record keeping (Danford et al, 2014).

In the Philippines, record-keeping practices are a vital element of any

business. It plays a critical role in the success or failure of contemporary

business institutions. These practices are responsible for recording,

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analyzing, monitoring and evaluating the financial condition of the entity,

preparation of documents necessary for tax purposes, and providing

information support to many other organizational functions. In the context of

small and medium enterprises (SMEs), accounting information from the

records is important as it can help the firms manage their short-term problems

in critical areas like costing, expenditure and cash flows (Yason, 2014).

However, the researchers have not come across any study that was

conducted on assessing the record keeping practices among ambulant

vendors in Tagum City. It only shows that the present study shall make

specific contribution and generate new knowledge on record keeping

management among these small establishments. The stated scenario

persuaded the researcher to look for the factors that can lead to assessing

record keeping practices among ambulant vendors in Tagum City as this can

raise awareness to the intended beneficiaries of this study and possibly

develop action to improve the current practices of the vendors.

Research Objective

This study aims to assess the record keeping practices among

ambulant vendors in Tagum City: Basis for intervention plan. Specifically, the

study is conducted to seek answers to the following objectives:

1. To assess the record keeping practices among ambulant vendors in

Tagum City in terms of:

1.1 Identification;

1.2 Classification;
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1.3 Storage and Protection;

1.4 Receipt and Transmission, and

1.5 Retention and Disposal

2. To formulate an intervention scheme based from the results of the

study.

Review Related Literature

Theories, concept, facts, information, views ad readings related to

assessing the five capabilities of strategic competence among SMEs.

Studies showed that the records continuum model was developed in

response to criticisms of the Life Cycle Model. The model provides a graphical

tool for framing issues about the relationship between records managers and

archivists, past, present and future, and for thinking strategically about

working collaboratively and building partnerships with other stakeholders. In a

continuum, there are no separate steps. Managing records is seen as a

continuous process in which one element of the continuum passes

seamlessly into another (Shepherd and Yeo, 2014).

Subsequently, the Records Continuum Model takes a higher-order

intellectual view of records, since it follows an integrated approach rather than

one made up of stages The model stresses the need for records professionals

to be involved in the earliest planning stages of an information system. The

Records Continuum Model has four actions of records care which are outlined

below: (Pemberton 2014).

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Identification and acquisition; this involves both records management

and archives management actions. Records management actions relate to

creation and acquisition of records while archives management actions relate

to the selection and acquisition of archives. Intellectual Control; In intellectual

control, records management actions include classification of records based

on a logical classification system or file plan, while in archives management

the actions relate to the arrangement and description of archives. Access; as

for access, records management actions relate to the maintenance and use of

records, while archives management actions relate to access, retrieval and

use of archives. Physical control; physical control is closely related to

intellectual control. However, in physical control, records management actions

relate to disposal of records by destruction while archives management

actions relate to preservation of archives (Pemberton 2014).

Also, the model identifies and recognizes: Key evidential,

recordkeeping and contextual features of the continuum and places them in

relationship to each other; The multidimensional nature of the recordkeeping

function; The need to map the evidential, recordkeeping and contextual

features of the continuum against dimensions of the recordkeeping function;

The need to place records in a broader social-legal and technological

environment. The records continuum model will form the theoretical

foundation of the current study, as it is an all-encompassing model that

includes all the records management issues that this study aims to investigate

(Masuke, 2015).
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In connection with this, the Decision Usefulness Accounting Theory

describes record-keeping as a process of providing the relevant information to

the relevant decision makers. Since the theory sets out a formal procedure

that enables individuals to make the best decisions given their subjective

probabilities, it is relevant to this study. The users are expected not only to

monitor their business transactions but also, to make the most accurate

decisions that will enable business enterprises to flourish. It explains how

entrepreneurs succeed in their business. It contends that successful business

operators consider profit to be a measure of success and competency. They

set personal but attainable goals for their business and are concerned about

their performance. They are conscious of every transaction accruing from

their business and hence are in a better position to control loss. The Decision

Usefulness Accounting Theory emphasizes documentation of business

transactions for the purpose of effective decision making. This endorsement

of the importance of documentation for business is very important for records

management. This paper therefore, links two theories namely, the records

continuum theory and The Decision Usefulness Accounting Theory. Both

theories are centered on information and documentation upon which business

managers and individual business owners rely on in order to make informed

business decisions. Much of this information which is held in the form of

records is crucial for business success. Therefore, there is need for records to

be created, well maintained and used since they provide evidence of business

transactions in all types of businesses including SMEs (Onaolapo, 2014).

There is link between record keeping and SMEs performance. It

established that due to poor record keeping, companies encountered

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difficulties in accessing financial assistance from both banks and non-banking

institutions. Apex Global Limited of Ghana also noted that all five Companies

applying for loans from banks and non-banking institutions such as Ghana

Commercial Bank and Kwaebibirem Rural Bank had their applications

rejected on ground of inadequate and poor book keeping. This situation

similarly exists in Tanzania. Therefore, improving record keeping in SMES is

likely to help SMEs to contribute more to economic growth and profitability in

Tanzania (Muchira, 2013).

In addition, there are very few SMEs which have knowledge and

understanding about the importance of business records, which are used to

reduce operating costs, improve efficiency and productivity. He explains that

business records are very essential for decision making and majority of the

SMEs do not prepare yearly financial statements. Studies assert that accurate

record keeping of SMEs transactions is essential to the growth of the

enterprises as it enables them to calculate the business profit more

accurately. The SMEs are also able to have some documents to back up their

tax records and hence can avoid losses by paying salaries and other bills

accurately (Mitchell, 2014).

Also, profitability of business enterprises rely on proper record keeping

that refers to the ability of business to meet the required standards, increase

market share, improve facilities, and ensure a return on investment. An

accurate record of the business' financial performance is a vehicle to

performance monitoring in specific areas. Accounting records provide a basis

for the complete and accurate income tax computation, a basis for sound

planning for the future and a basis for discussions with partners, potential
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investors, and lenders. All these are important aspects which enhance

performance of the business. Businesses also rely on correct transaction and

accounting records to make good decisions about the firm. Decision such as

expansion, drop or maintain and size of product. Therefore, if proper records

are kept, they will facilitate efficient, proper timely decision making and

enhance performance in small scale industries (Mitchell, 2014).

Record keeping is crucial in any business small or large. Records to an

organization act like blood in the human body; without it there is no survival, it

is exactly the same for business regardless of the means of transaction. In

this age of technological advancement, there are different ways of conducting

business. These include electronic payment, e-banking, emarketing and even

e-record keeping. Eric and equate bookkeeping to record keeping and states

that record keeping is an essential tool which helps managers or business

owners to exercise proper financial control and identify the strengths and

weaknesses of their business. This in turn assists them to make appropriate

decision to improve business performance because they get to know the

financial positions of their businesses and thus take certain control measures

to improve profitability. Generally, records provide rich information that is

useful to managers, business owners, investors, leaders, customers,

suppliers and regulators in running their businesses smoothly (Gabriel, 2012).

Records management seeks to manage and control business records

throughout their life cycle, from their creation and distribution, through their

filing and use, and ultimately to their final disposition or permanent retention.

Records management is more than retention, storage, and disposition of

records. It entails all recordkeeping requirements and policies guidelines that

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allow an organization to establish and maintain control over information flow

and administrative operations (IRMT, 2014).

Management of business records has many benefits including proper

decision making, planning, efficiency and effective of service delivery, space

saving, expenditure reduction for filing equipment, efficiency in retrieval of

information, protect vital records, control over creation of new records,

identification of historical records and compliance with legal retention

requirements and the establishment of administrative fiscal, and historical

retention requirement). Studies indicate that the management of business

records promotes cost effective business practices. At the same time proper

records management program will reduce the volume of records stored;

improve storage and retrieval systems and help to get the right record to the

right person at the right time more effectively and efficiently (ICA, 2014).

It is crucial that the record keeping practices of SMEs supply complete

and relevant business information needed to improve economic decisions

made by entrepreneurs. Business managers, individual business owners or

organizations should determine which documents created or received during

business transactions should be captured as records into a recordkeeping

system, and how long they should be maintained within the system, based on

an analysis of the legal and regulatory environment, business and

accountability requirements and the risk of not capturing or retaining the

records. This will ensure that adequate and necessary records are captured to

meet business needs. This process is also important since proper disposal of

records facilitates easy retrieval of records in active use, and minimizes costs

for maintaining and storing records (Richard, 2013).

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The best strategy is to educate business owners, managers as a well

as employees on the need to keep business records. Also, government must

make the use of business records mandatory in order to ensure every

business owner or manager keeps business records. Additionally, there is

need to hire consultants for SMEs for the purpose of conducting of financial

statements as well as offer accountancy services and strengthen monitoring

and supervision to keep accounting records. Studies assert that education is

critical to enable small business owners to acquire more knowledge and skills

on record keeping. This is by organizing seminars, workshops and training

sessions where such knowledge transfer can take place. Universities and

colleges should also offer more courses related to bookkeeping apart from the

general business (Mutua, 2015).

Recent studies shows that SMMEs owners and managers interviewed

were asked if they maintained business records. SMMEs indicated that they

were keeping business records, but this was contrary to the actual scenario

based on the types of records available. As a follow-up question, the

respondents were asked if they were aware of what is known as record

management life cycle, but none of the respondents knew what a record life

cycle is. This indictates that business records processes be managed

systematically from the creation to the final disposal. This is essential for

business organizations' performances and sustainability. Judging from the

types of records the SMMEs were keeping, their responses on records

classification, and the lack of RM training and skills which constitute vital

records management practices, it can be stated that the SMMEs lack RM

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practices. The SMMEs lack of training, skill and basic RM knowledge simply

indicated that they were not familiar with the life cycle concept and their

responses showed that there was no systemic management of business

records. Nevertheless, the life cycle and continuum require systematic

management of records from creation to final disposition. These SMMEs

records management practices cannot be compared with the practices in

developed countries where it was reported that the SMMEs had adopted

systemic RM for their companies' operations, as supported by findings that

the European SMMEs viewed RM as essential practices for their business

stability and improved performances. These findings clearly show that there

appears to be wide gaps between how business records were maintained in

the developed economies in contrast to SMMEs in South Africa. The

respondents were further asked to state or describe the types of records or

books they were keeping, and based on their responses, seven categories or

types of records were identified. However, the SMMEs that their records were

categorised as "general document" used the same document to capture sales

recordings, and for customers contact detailed information (Webster &

McLeod, 2013).

Also, studies showed that the types of records maintained by the

SMMEs; and from the business process and financing perspectives

represented a lack of coherent and systemic business RM. These types of

records show accumulation of documents, which do not automatically

translate to systematic management of business recorded information. It may

represent inability of the SMMEs or incapability to provide needed information

to support the business. The above might not be a justifiable evidence for
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regulated financial institutions granting business loans when SMMEs financial

records are needed by the banks to appraise credit worthiness. It is, perhaps,

because financial business transactions are evidential records often

embedded in the invoices, purchase orders, and sales records which are

useful to monitor market and prices fluctuation, and the SMMEs barely

maintained sales records. Yet, one of the crucial selling points for SMMEs

performance monitoring and evaluation is the sales figures. The findings

reveal that only 4.35% maintained sales figures and purchase orders, and this

alone does not depict good RM practices (Hare, 2014).

Every business requires, at least, invoices, purchase orders, and sales

records to ensure accountability. These records are vital for financial

institution business appraisal. These business records are essential for sales

prediction, market forecast, and inventory control. This lack of financial or

sales records might have explained some of the reasons why banks refused

to grant loans to the small businesses, as reported vvthat 75% of these small-

scale businesses applications to financial institutions were rejected. The lack

of SMMEs managers to utilise RM for inventory control and business

forecasting may be responsible for the most abrupt closure often witnessed in

South Africa. This abrupt closure had placed SMEs failure rate in South Africa

to be ranking among the highest in the world as reported by business RM is

vital in measuring business weekly and monthly growth trajectories, as well as

quarterly and annual business performances. Maintaining these records afford

SMMEs the opportunity to derive business yearly planning scorecard from this

recorded information. It might be difficult to determine whether the business

owners are spending business capital or profit without written cash flow
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evidences, financial records, and business RM that is presenting money flow

which is essential for operational sustainability (Bauer, 2012).

Records management compliance is vital for business operations, and

it is noteworthy to know the distinct types of records maintained by the small

businesses. The respondents were asked about how they classified the types

of records they were keeping. Recent studies show that there was no

differentiation or classification of records, and thus, there were no records

classifications practices. The business responses indicated that the SMMEs

had no acceptable standard for records classification practices to aid viable

business environments. It appeared then that no records classification was

implemented or under practice, and it was confirmed by these studies that

they had no technical knowhow to implement business records classifications.

From what was witnessed and observed during the interviews, it appeared

that invoices and receipts were mixed in some cases. It was, therefore,

difficult to identify payment slips, invoices and purchases receipts as they

were lumped together. Three (13.45%) out of the total respondents said they

classified their records as sales books. Five (21.75%) of the interviewees

categorised their sales, purchases and invoice records as receipts while two

respondents identified having a stock book and inventory (Hare, 2014).

However, records classification can promote easy identification of

distinct types of records generated by the SMMEs, and classification is helpful

when used in the arrangement and description of business records based on

different business activities that created it. Usually, the records are arranged

in a consistent and systematic way suitable to the originating provenance or

company and it is necessary to create an automated process of appraising

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routine business transactional records. Studies indicated their incapacity to

separate their records according to business utility and transactions. Perhaps

the SMMEs did not see any reason why their business records should be

classified. It could be as a result of lack of required knowledge to initiate or

implement records classifications as indicated by respondents who indicated

they lacked records classification capabilities (Saul & Klett, 2014).

However, while it appears that the SMMEs lacked the required skills to

implement RM, when they were asked if they thought classification could help

them make better decisions, the respondents agreed that classification might

improve their sales records' traceability and better business decision making.

Consequently, the danger is when records are not classified; it may hinder

easy access to the records which may lead to a risk of inefficiency, due to

inability to trace vital business records. The question on business records

classification was useful in exploring SMMEs perception on the importance of

separation of invoices from receipts, sales books from stock books,

purchasing order from inventories and business reports from general

correspondence. The ability to identify these various business records will

enable companies to make informed decisions on their transactional activities

(Saul & Klett, 2014).

Apparently, SMMEs in Africa need to remain competitive in this volatile

economic terrain. It was reported that most of the SMMEs in advanced

economies utilise RM scheduling and procedures for diverse types of

business records produced. They had a system for disseminating records,

such as the procedure for retrieving records, and procedure for records

security. SMMEs in this advanced market have adopted established

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procedures for creating and maintaining, storing and disposing of records.

The stuies revealed that SMMEs in Europe are mostly acquainted with the

significant contributions of records to business success. These findings were

contrary to the SMMEs RM practices in South Africa. However, there was a

business owner who indicated that she did separate her business finances

from personal expenses without which sales records management could not

be adequately achieved. She reported as presented below that she engaged

an expert service in assisting with e-filing and filing for claims refunds

although for taxation purposes (Borglund et al., 2014)

However, business owners reiterated monitoring business performance

because the rent they pay on the shop is expensive, the financial records

maintain is the only way to monitor performances of each monthly sale. It was

observed that one of the biggest challenges facing SMMEs was how to

maintain cash flow and keep proper records of the money movement in and

out of their businesses. The inability of the SMMEs to keep an established

cash book and its management could only be translated to mean an absence

of financial records management as previously indicated. The respondents

were also asked if they thought that RM was important to their businesses.

Twenty-one respondents said yes, but one respondent said he did know, and

the other one did not give any opinion. Subsequently, the respondents were

requested to rate, based on their perception of the importance of RM and

records infrastructure by indicating; low, moderate, very high, and not aware,

but the result included those that were undecided. Ten respondents (43.4%)

rated the business RM importance very high. (see figure 5). The respondents

were asked if they thought that RM infrastructure was essential. Seven

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(30.4%) respondents indicated that RM was essential for their efficient

business management (Weisinger, 2014).

In contrast, four of the interviewees (17.4%) indicated that they were

not aware of the importance of RM infrastructure to businesses. This may be

because these respondents were not maintaining business RM. Thus, they

were not trained and there were no RM experts, and the SMMEs had no

formal training in records management. Hence, they may not be aware of the

needed infrastructure to maintain business records. However, lack of RM

infrastructure may, in a way, unavoidably hinder their business sustainability if

these companies fail to realize the importance of corporate RM, whereas

reiterated that firms that do not ascribe importance to RM activities might

suffer low return on investments (Miller, 2015).

There are two predominant types of records infrastructure: physical

and intellectual. The physical infrastructure could be the underlying physical,

organizational structure that aids systematic and logical processes of

business RM such as record management policy and needed personnel for

the operationalizing business RM. The intellectual infrastructure may include

but not limited to classification, appraisal and disposal scheduling, file plan,

and required skills and training for active RM. The respondents were asked

about the infrastructure available in their businesses to manage business

records. None of the interviewees had either the required training or skill to

support business RM. Yet it was documented that "effectiveness and

efficiency of any enterprise hinge on the quality of skill used or

adopted"(Kang'ethe & Ajibade, 2016).

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Also, it is noted that the use the records to monitor that lay-by

progression (how much have been paid, what is left to be settled, we are only

using our idea to write what is happening, if we can learn other better ways

through training it will be better. It was discovered that no business

infrastructure was available to manage their transactional records. The

respondents were asked if they knew what RM policy is. Unfortunately, not

one of the respondents indicated that they knew what RM policy is, and all the

respondents affirmed that they were not aware of any legislative requirements

enforcing such RM guidelines.

Consequently, critiquing the available information on SMMEs records

classification and their understanding of the RM show "below standard" RM

requirements needed for successful business operations. It was apparent that

no business records classification existed; however, the SMMEs recognition

of the importance of RM was below average but very encouraging. This

recognition of the RM importance substantiated that, although most of the

SMMEs owners did not maintain business records, yet, they were aware of

the value embedded in the business RM practices. However, only one of the

respondents had a stock book and inventory records. The finding established

that human resources to facilitate SMMEs RM were severely lacking. This

lack of RM skill was consistent with the results in studies in Uganda which

stated that these small businesses lacked required training in RM which is

needed to run a business. Unfortunately, regarding skills to affect RM, none of

the SMMEs owners neither did not have the training nor were any of the staff

members able to provide needed technical expertise required to manage

business records. However, there was an exception however of one

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respondent who had employed external auditor for tax settlement and claim

filings, and this served as part of her record filing practices (Okello, 2012)

Regarding business sustainability, it has been argued based on the

premise that RM fosters return on investment which is critical for performance

appraisal and business sustainability trajectories. The significance of RM can

be measured as cost benefits over a period, as RM might save business

expenses, by reducing operating spending due to continuous ability to monitor

transactions information that were recorded. However, without prior business

RM classification and organizational infrastructure, cost allocation and returns

or (ROI) factors might be arduous to determine. SMMEs might find it hard also

to support improved decision making, and to maintain evidence of

transparency and accountability with their lack of RM policy in this global

business milieu. However, when RM importance is taken seriously, SMMEs

owners might setup RM both physical and intellectual infrastructure that is

suitable for their transactions and activities. Thus, RM practices and

infrastrucure may contribute to business efficiency, promote access to

business information, ensure legislative compliances, and ultimately preserve

market memory that is useful for risks management (Ngulube, 2015).

Theoretical Framework

This study is anchored on the proposition of Ademola et al., (2012) who

stated that record keeping plays a key role in management of knowledge

necessary for good business performance. Record keeping involves

identification, classification, storage and protection, receipt and transmission,

retention and disposal of records for preparation of financial statements. He

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also included that in record keeping, policies, systems, procedures,

operations and personnel are required to administer the records. Modern

organizations are concerned with the capture, use and storage of knowledge.

The benefits of record keeping cannot be over emphasized. Record keeping

has become the foundation on which the totality of modern business depends.

This is because without it, it will be impossible to ascertain the level of

profitability and the level of business susceptibility to fraud. Record keeping

and good record management is also essential for any corporate body to

function effectively. That is why record keeping is essential to business

management.

This is also supported by Reed (2010) when he stated that accounting

records include entries from day to day transactions of business for instance

transactions in respect to receipts and expenditure. Records may include a list

of organizational assets and liabilities. These help the enterprise to evaluate

their performance in a particular period of time usually at the end of a financial

period. Proper record keeping provides evidence of how the transaction was

handled and substantiates the steps that were taken in order to comply with

business standards. Record keeping is the foundation on which a compliance

program should be built upon measures should be put in place to capture the

documentation and events that take place throughout a transaction

commencing from delivery and payment.

William et al., al stated that record keeping cycle involves a process

that is followed by Accountants and book keeping staff in processing raw

financial data into output information inform of financial statements. The

process ranges from creation of business transactions, analyze and record

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the transactions in the journals by account name, post information from

journals to ledgers, prepare a trial balance, journalize adjusting entries, post

adjustments from the journal to the ledger, prepare an adjusted trial balance,

journalize closing entries, post-closing entries from the journal to the ledger,

prepare a post-closing trial balance, and prepare the financial statements.

Conceptual Framework

The conceptual framework presented in figure 1 of this study discusses

the record keeping practices among ambulant vendors in Tagum City with the

help of indicators in making an action plan.

The record keeping practices among ambulant vendors in Tagum City

following indicators: identification refers to the vendors ability to identify

transactions that is needed to be recorded, classification which refers to the

vendors ability to classify the transactions into different accounts, storage and

protection is the ability of the vendors to safe keep the records, receipt and

transmission is the ability of the vendors to utilize properly the different

records, and retention and disposal refers to the ability of the vendor to

properly disposed its records (Ademola, 2012). The study serves as the basis

for a proposed action plan as shown in the figure 1.

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Record Keeping Practices

among Vendors in terms of:

 Identification

 Classification

 Storage and Protection Intervention

Scheme
 Receipt and Transmission

 Retention and Disposal

Figure 1.The Conceptual Framework of the Study

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Significance of the Study

The findings of the study may serve as the basis of formulating

intervention plans for record keeping practices among vendors which they can

utilize in order to ensure higher level of competitiveness in business

transactions and improve more as they use these systems. The outcome of

this research may provide insight to all ambulant vendors in Tagum city to

improve their record keeping practices in their business having proper

planning within the stall. It may provide information to all business owners and

vendors particularly in record keeping management of the business. It may

develop the understanding of the vendors in different aspects and edge of the

business upon using these different practices. The results of this study may

give motivation to the ambulant vendors that they may improve the current

situation of their record keeping practices which may lead to better

performance. It will inform the vendors regarding on how they will respond

and deal with the changing environment of the business.

Furthermore, the result of the study may eventually benefit the

government side since this study is conducted to assess the five capabilities

of strategic competence among SMEs as a basis for planning. It may

encourage and enable them to make greater awareness. Finally, the findings

of this study may provide the future researchers a starting point on how to

expand the coverage of the research in terms of the variable covered in the

study.
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Definition of Terms

In order for the reader to have a better understanding on the

terminologies used in the study, the following term is defined operationally.

Recordkeeping. The term refers to the maintenance of a history of

one's activities, as financial dealings, by entering data in ledgers or journals,

putting documents in files, etc.

Ambulant Vendors. The term refers to popular source of livelihood in

the Philippines. Ambulant vendors in the country are either itinerant or semi-

static. Itinerant vendors are those who go around shouting their wares while

semi-static ones are those who are semi-fixed positions but may move about

as the situation necessitates.

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Chapter 2

METHOD

This chapter will present the research design, research locale,

population and sample, research instrument, data collection, and statistical

tools.

Research Design

This study will be using a descriptive quantitative research design. This

method will be use when the objective is to describe the status of the situation

as it exists at the time of the study to explore the causes of a particular

phenomenon. It involves collecting data in order to determine the degree of

the quantifiable variables that will be analyse and integrating organizational

capabilities, which find root in strategic management literature will be develop

(Parida, V. et al, 2016).

This survey will be dealing on a quantitative data about the said

phenomenon. The quantitative aspect is an appropriate schedule for

gathering the data designed for the target respondents to answer the

questions.

Research Locale

The findings of this study are specific to the context of the ambulant

vendors in Tagum City, Davao Del Norte. The possibility for the general
 24

applicability of the findings will be limited by the scope, and the sample.

Accordingly, even though there could be common features, the findings may

not have general applicability to other systems. Presented in figure 2 is the

Figure 2 .Map of the Philippines Highlighting Davao delNorte

 25

map of the Philippines consisting of 17 regions in which the City of Tagum,

Province of Davao Del Norte is located in Region XI. Moreover, presented in

figure 2 is the vicinity map of the respondents in which place of residency of

managers and owners of SME’s located in the City Tagum.

Tagum, officially the City of Tagum, is a first city and capital in the

province of Davao delNorte. It is the top most liveable cities in the Philippines.

The city is located 55 kilometres north of Davao City, the main economic and

administrative center of region XI. The city lies between 7 o26’ N latitude and

125o48’ E longitude. It is bounded by the Municipalities of Asuncion, New

Corilla, and Mawab on the north, Maco on the east, and B.E. Dujali on the

west. Carmen lies on its southwestern borders, while it faces the Davao Gulf

directly to the south.

The location of the respondents is located at Tagum City, Davao del

Norte. Wherein, Tagum City is subdivided into 23 barangays consisting of

growing numbers of SMEs. Furthermore, the place of the respondents and the

conduct of the study is located in Tagum City, Davao del Norte, Philippines.

Population and Sample

Complete data will be used for the selection of the respondents. The

subjects of the study will be the ambulant vendors. The researchers will

choose 200 respondents among these vendors in Tagum City. The

respondents of the study will be the owners on ambulant stores in Tagum City

for the year 2020.

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Distribution of Respondents

Location of Business Number of Respondents

Apokon 10

Bincungan 5

Busaon 5

Canocotan 5

Cuambogan 5

La Filipina 10

Liboganon 5

Madaum 5

Magdum 10

Mankilam 10

New Balamban 5

Nueva Fuerza 5

Pagsabangan 5

Pandapan 5

Magugpo Poblacion 5

San Agustin 5

San Isidro 5

San Miguel (Camp 4) 10

Visayan Village 15

Magugpo East 15

Magugpo North 20
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Magugpo South 20

Magugpo West 15

Total 200

Selection of the respondents of the study will use the quota sampling of

1 vendor per business coming from 23 barangays in Tagum City with a total of

200 vendors. The distribution of the respondents as shown in table 1 is as

follows: Ambulant vendors of Tagum City coming from different kind of

business ventures which are commonly present in the 23 barangays in Tagum

City that is being itemized in table 1. The total number of vendors will be 200.

Research Instrument

The instrument will be using researcher-made questionnaire in the

study to suit to the context of the study. The set of questionnaire deals with

assessing the record keeping practices among ambulant vendors in Tagum

City with five indicators: identification, classification, storage and protection,

receipt and transmission, and retention and disposal. The contents of the

instrument will be presented to the group of experts for validation. In

assessing the record keeping practices among ambulant vendors, the five

orderable gradations with their respective range of means description were

considered:

Range of means Descriptive Equivalent Interpretation

4.30 – 5.0 Very High This means that

the record-
keeping practice
is very much
observed.
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3.50 – 4.20 High This means that

the record-
keeping practice
is much observed.

2.70 – 3.40 Average This means that

record-keeping
practice is
moderately
observed.

1.90 – 2.60 Low

This means that
record-keeping
practice is less
observed.

1.00 – 1.80 Very Low This means that

record-keeping
practice is not
observed.

Data Gathering Approach

After the approval of the panel members the researcher will undergo

the following steps and procedures in gathering data for the study.

The researcher will ask permission from the office of the Business and

Licensing of the City of Tagum to conduct study to the different ambulant

vendors in Tagum City. Upon the approval, the letter of endorsement will

sought to accommodate the researcher to administer the survey questionnaire

to the respondents of the study. The researcher will be personally handling

 29

the questionnaire and will explain the research tool and its purpose.

Furthermore, the researcher will be retrieving the survey questionnaire after

the respondents have answered all the items. Finally, the researcher will

tabulate all the data gather from the respondents, subject to statistical

analysis. The statistical results will be analysed and interpreted. With the data,

conclusions will be drawn and recommendations will be formulated base on

the findings of the study.

Statistical Tool

The statistical tool the researchers will use for data analysis and

interpretation is:

Mean. This statistical tool was used to assess the level of capabilities

of strategic competence among SMEs in Tagum City.

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REFERENCES

Parida,V., Oghazi,P., &Cedergren,S. (2016). A Study of How ICT Capabilities

Can Influence Dynamic Capabilities: Journal of Enterprise Information
Management, 29(2), 179-201. Retrieved from
https://search.proquest.com/docview/1765612525?accountid=31259