Entrepreneurial Orientation and Financial Performance of Nigerian SMES:

Abstract

This paper develops a theoretical model of the relationship between four dimensions of entrepreneurial ori- entation (EO) and firm financial performance. Also included in the theoretical model are environmental characteristics such as dynamism and hostility that are likely to impact on the relationship between en- trepreneurial orientation and firm financial performance. Hypotheses were developed regarding the various relationships between the EO dimensions that would be most appropriate in a particular environment. Future research may benefit from the study by considering the important role that environmental dynamism and hostility play in this model. The implications of this model for the policy makers, practitioners, managers and researchers are also discussed.