STRATEGIC MANAGEMENT AND INNOVATION IN MEXICALI SMES: IMPLICATIONS FOR PROFITABILITY

Small and medium-sized enterprises (SMEs) in Mexicali, Baja California, play a fundamental role in the economic and social progress of the area. These companies are an important source of employment and contribute significantly to the revival of the local economy. The purpose of this study is to contribute to SMEs in Mexicali, Baja California, by discovering how strategic management and innovation can positively impact the profitability of small and medium-sized enterprises. The research has a quantitative, non-experimental, correlational, and cross-sectional design. A structured questionnaire on a 5-point Likert scale was administered to a representative sample of 361 establishments determined by probabilistic sampling. The study includes a validation of the relationships between the variables Strategic Management, Innovation, and Profitability using the Structural Equation Modeling (SEM).