Factors That Drive the Performance of MSMEs. An Exploratory Study in Baja California

Objective: Identify the factors that influence the performance and technological situation of Micro, Small and Medium Enterprises (MSMEs) in the state of Baja California Theoretical Framework: The reason that drives companies to invest in innovation, in human resource management, in improving administrative management, among others, is to increase their profits, and in general the performance of the company. Conventional corporate and functional strategies, along with traditional actions and tools, as well as usual business models, are being disruptively displaced by innovative business management schemes. Method: An analysis was carried out using a non-random statistical sample of 687 surveys, and three statistical models were applied: factor analysis, SUR regression model and multinomial logit. Results and Discussion: The results indicate that the performance of companies and the improvement of their technological positioning improve with the regular implementation of customer satisfaction policies, practices and activities related to human resources management (the provision of training, evaluation and adequate remuneration to the worker, promoting initiative and autonomy), with the implementation of mechanisms for product and process innovation, and the adequate allocation of technological, financial and physical resources in the company. Research Implications: The practical and theoretical implications of this research are discussed, providing insights into how the results can be applied or influence practices in the field of [insert field of study]. These implications could encompass [list impacted areas or sectors]. Originality/Value: This work presents an empirical result of how certain variables of financial administrative management, innovation, human resource management, and use of ICT influence the performance and technological position of MSMEs in the State of Baja California. In this work, performance was evaluated by 3 variables, one subjective and two associated with the size of the company and its permanence in the market.