Collaborative Strategies and Relational Capital: Risk Mitigation for MSMEs in Weak Markets

Micro, Small, and Medium Enterprises (MSMEs) face a high probability of bankruptcy when operating in weak economies. According to empirical data from Ecuador's National Institute of Statistics and Census, 75% of MSMEs exit the market after seven years of operation. This study seeks to demonstrate a strong, direct relationship between Relational Capital, Collaborative Strategies, and Value at Risk (VaR) for MSMEs. The principles and theoretical foundations of "process-based collaborative actions" are explored as sustainable value generators in weak markets. An empirical methodology involving structural equation models and regression was applied, using secondary data from 367 MSMEs in the commercial sector sourced from Ecuador’s Superintendence of Companies and surveys conducted with entrepreneurs and academics. The findings confirm that a "Relational-Collaborative" management approach can overcome the weaknesses of specific markets, even when broader dynamics remain unchanged. By harnessing synergy, businesses efficiently manage key financial variables, thereby reducing enterprise risk.