Entrepreneurial orientation and firm performance in Indian SMEs: Universal and contingency perspectives

Abstract

This article explores entrepreneurial orientation (EO); this notion has received considerable theoretical and empirical attention in organizational research, emerging as one of the most widely accepted firm-level constructs in the literature. As knowledge in this area has expanded, researchers have delved into the contextual factors that influence the relationship between EO and organizational performance. With the goal of better understanding the circumstances under which pursuing entrepreneurial strategies result in favourable performance outcomes, this article investigates the EO–performance relationship among small- and medium-sized enterprises (SMEs) in India. Data collected from 198 Indian SMEs revealed a strong positive linkage between EO and firm performance. Environmental contingencies – demand growth and competitive intensity – were theorized and found to have a moderating influence on the EO–performance relationship. Implications and directions for future research are discussed.