Abstract
This study investigates the relationship between the quality of the business environment and the competitiveness of small and medium construction enterprises (SMCEs) in Metro Iloilo, Philippines, employing Porter’s Diamond Model as the theoretical framework. Utilizing a quantitative, descriptive-correlational research design, data were collected from 45 SMCEs selected through simple random sampling. Findings reveal that medium-sized enterprises exhibit superior business environments, particularly in customer service and firm strategy, and demonstrate higher levels of competitiveness in terms of brand image and product quality. The study also identifies significant associations between enterprise characteristics (size and location) and manager demographics (civil status and income) with both environmental quality and competitiveness outcomes. Notably, pricing quality and image emerged as the strongest correlates of competitive performance. These results underscore the need for strategic positioning, customer-centric practices, and operational efficiency to sustain competitiveness. Policy recommendations include the enhancement of technological infrastructure and the formulation of supportive regulatory frameworks to foster growth and resilience among SMCEs.
