Linking entrepreneurial orientation with organizational performance of small and medium sized enterprises: A conceptual approach

Abstract

Research examining the relationship between entrepreneurial orientation (EO) and business performance has recently received considerable attention in the marketing and entrepreneurship literature. Empirical studies on the determinants of firm performance have shown that the entrepreneurial orientation of a firm has significant positive influence on the firm performance. However, less attention has been paid to this relationship in the context of SMEs. This study therefore contributes to the existing literature by examining this relationship in SMEs context. The current study suggests that the owners/ managers of SMEs should adopt the EO mindset in order to attain sustainable competitive advantage and superior performance. The current study provides insights to researchers, practitioners, owners and managers on the importance of the dimensions of entrepreneurial orientation.