Determinants of Profit Maximization Among Microentrepreneurs in the Davao Region, Philippines: An Explanatory Sequential Mixed Methods Approach

Abstract

In today’s constantly evolving and competitive business environment, profit maximization remains a critical concern for micro-entrepreneurs, particularly in the salon industry. Thus, this study aimed to determine the influence of market orientation and entrepreneurial orientation on the profit maximization strategies of micro salon businesses in the Davao Region. The researcher employed an explanatory sequential mixed methods research design to gain a comprehensive understanding of the phenomenon. The quantitative strand involved a survey of 200 purposively selected micro-entrepreneurs operating salon businesses, while the qualitative strand included in-depth interviews with 10 participants. Quantitative data were analyzed using inferential statistics, while qualitative responses underwent thematic analysis. Findings revealed a very high status on market orientation, while a high status on entrepreneurial orientation and profit maximization was found among the respondents. Statistical results further showed that entrepreneurial orientation exerts a stronger influence on profit maximization than market orientation. Qualitative themes highlighted the importance of honoring customer preferences, fostering innovation, and adapting to market needs. The integration of findings showed a merging-confirmation pattern. At the same time, specific dimensions such as risk-taking and customer responsiveness followed a merging-expansion trend, underscoring the nuanced roles both orientations play in driving profitability. These results offer meaningful insights for research and practical strategies that support micro-entrepreneurs in achieving sustainable profit goals in a competitive marketplace.