Organizational Behavior on Sustainability and Operational Efficiency of MSME in Cabanatuan City: Basis for Strategic Plan

This study aimed to examine the impact of organizational behavior on sustainability and operational efficiency among Micro, Small, and Medium Enterprises (MSMEs) in Cabanatuan City. How MSMEs can balance sustainability practices with operational efficiency, addressing the challenges they face in an evolving business landscape. The quantitative research design, using survey questionnaires distributed to 203 MSME owners and employees in Cabanatuan City. Revealed in this study that the MSME sector in Cabanatuan City is dominated by service industries, with a majority being small enterprises. The workforce is young and well-educated, with a strong focus on training and development. Sustainability practices are widely supported, with employee awareness programs and energy conservation being the most implemented. The study also identifies challenges in balancing sustainability with operational efficiency, including limited resources, increased costs, and lack of expertise. Findings further showed that while MSMEs in Cabanatuan City show strong potential for growth and a commitment to sustainability, they face significant challenges in resource management and knowledge gaps. Recommendations include enhancing decision-making processes, leadership development, improving communication systems, and prioritizing knowledge management to strengthen organizational behavior and integrate sustainability into operations. This study recommends several strategies to improve organizational behavior, sustainability, and operational efficiency among MSMEs in Cabanatuan City. First, businesses should enhance decision-making processes by adopting a hybrid model that balances centralized and collaborative approaches. Clear frameworks incorporating sustainability and efficiency metrics should guide decisions, supported by feedback mechanisms to evaluate outcomes. Leadership development is also crucial, with formal training programs focusing on sustainable practices, mentorship opportunities, and competency frameworks that emphasize both operational efficiency and sustainability.