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Factors influencing the profitability of small and medium-sized companies in the food sector

Author

Listed:
  • Rodríguez Quezada, Estela
  • Hernández Jiménez, Araceli
  • Cáceda Quispe, Marisol
  • Barrantes Santos, Fanny
  • Cartes Cabrera, Carolina Ivón
  • Cofré Mella, Norma Alejandra

Abstract

The food sector has been one of the most affected economic areas due to the restrictions that were put in place to mitigate the spread of Covid-19 during the pandemic. The purpose of this body of research was to determine the factors that affected the profitability of Chilean small and medium-sized companies in the food sector, from a contingency perspective and from the standpoint of resources and capability. To do this, quantitative research was conducted with a sample of 59 companies. The results of the logistic regression analysis indicated that when firms made three or fewer workers redundant, the probability that their performance would improve or remain the same rose by 422%. On the other hand, for each additional decision the firm made, this likelihood fell by 51%. Technology and size were not relevant for these types of companies.

Suggested Citation

  • Rodríguez Quezada, Estela & Hernández Jiménez, Araceli & Cáceda Quispe, Marisol & Barrantes Santos, Fanny & Cartes Cabrera, Carolina Ivón & Cofré Mella, Norma Alejandra, 2025. "Factors influencing the profitability of small and medium-sized companies in the food sector," Revista Galega de Economía, University of Santiago de Compostela. Faculty of Economics and Business., vol. 34(1), pages 1-28.
    • Handle: RePEc:sdo:regaec:v:34:y:2025:i:1_5
    DOI: 10.15304/rge.34.1.9939
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    More about this item

    Keywords

    Covid-19; Food sector companies; Profitability; Redundancies; Decisions;
    All these keywords.

    JEL classification:

    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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