Level of administrative formalization in local businesses and its strategic impact

Abstract

Introduction. This study examined the level of administrative formalization in local businesses in the city of Macas and its strategic impact on business performance. Objective. The study began because many small and medium businesses still operate using trial-and-error administrative processes, which limit their competitiveness and ability to grow steadily. Methodology. A quantitative approach with a descriptive-correlational scope, non-experimental design, and cross-sectional cut was used. The information was gathered through a structured survey given to local business owners and managers, looking at areas like administrative processes, management tools, legal compliance, and formalization factors, as well as productivity, access to financing, market positioning, and business sustainability. Results. The results showed that organizations with higher levels of formalization are better able to strengthen their internal management, improve decision-making, and take advantage of growth opportunities. Conclusion. It is concluded that administrative formalization is a key factor in improving the competitiveness and survival of local businesses. Therefore, it is important to promote training programs and business strengthening initiatives that encourage a more efficient and sustainable administrative culture. General Area of Study: Administration. Specific area of study: Administration. Type of study: Original article.