The effect of entrepreneurial orientation on business performance: Evidence from small medium size enterprise

Abstract

Entrepreneurship has long been considered a significant factor for

socioeconomic growth and development because it provides millions of job opportunities,

offers a variety of consumer goods and services, and generally increases national prosperity

and competitiveness (Lee, 2000). Many scholars have focused on the individual level

behavior analysis for the entrepreneurs and others as Wiklund (2005) focused on the firm

level in behavior in explaining entrepreneurial performance on the basis that the behavior

gives a meaning to entrepreneurial process. Other scholars remain in the area of studying

entrepreneurship without entrepreneurs and it remains worthwhile for a certain period at the

individual level (e.g. using a trait-based approach). Although, we believe that the dispositional

characteristics are to be related to the firm level behavior as well as affect the firm

performance outcomes for a complete understanding of the entrepreneurial process.

To date, few studies have examined how dispositional traits, firm-level behaviors, and

firm-level outcomes are related (Poon et al., 2006).