Assessing the Relationship between the Perceived Business Environment and Firm’s Entrepreneurial Orientation

Abstract

Drawing from the three dimensions of entrepreneurial orientation (3D of EO) perspectives, the paper examined the entrepreneurial orientation and performance of small and medium enterprises (SMEs) vis-à-vis the environmental embeddedness. Using multi-stage sampling technique, a total 279 firms were selected for the study at two strategic areas, Lagos and Ibadan being the hub of industrial activities in Southwestern Nigeria. The data generated was analyzed using descriptive and inferential statistics.The entrepreneurial orientation of the firms is significantly related with two environmental variables of dynamism and hostility, while the four environmental variables of dynamism, hostility, heterogeneity and munificence significantly related to the dimensional variables of entrepreneurial orientation.