Literature Study on Entrepreneurial Orientation and Firms Performance: An Assessment and Suggestions for Future Research

Abstract

Purpose: The purpose of this study was to review the theoretical approach toward entrepreneurial orientation; examine the impact of entrepreneurial orientation on firm performance and explore the key entrepreneurial orientation dimensions from a Strategic Perspective.Design/methodology/approach: The study approach is qualitative, and it is based on the study of entrepreneurial orientation and business performance literature from Scopus and Google Scholar. An overview of the entrepreneurial orientation dimensions that influences the performance of the firm. The scoping method of the literature review supported the summary of major findings. Findings: The literature review indicated that entrepreneurial orientation is essential for small and medium enterprises (SMEs) to survive and sustain their businesses. The scoping approach towards the literature study indicated there is a significant relationship between firms’ performance and the pro-activeness and innovativeness dimension of entrepreneurial orientation. Research limitations/implications: This study proposes a conceptual framework that can be tested in the future by conducting empirical data either by using quantitative, qualitative, or mixed research methods. Social Implications: This article may enable SMEs, academicians, researchers as well as entrepreneurial development policymakers to understand that factors like the innovativeness and pro-activeness dimensions of entrepreneurial orientation have a significant impact on firms’ performance. Originality / Value: This study contributes by demonstrating the present knowledge on dimensions of entrepreneurial orientation and its relationship with firms’ performance. Moreover, this research may serve as a pathway for future empirical study. Keywords: Entrepreneurial Orientations, Firm Performance, Pro-activeness, Innovativeness, Scoping Approach.