Understanding entrepreneurial orientation and business performance the role of culture A review

Abstract

Entrepreneurial Orientation (EO) is a universally accepted concept that is applied by the small and medium sized organizations. The studies have shown a significant relationship between EO and business performance. One element that connects EO and business performance is „Culture‟. Organizational culture and the culture as a whole have significant place in the modern entrepreneurial firms. Culture refers to national culture, organizational culture, societal culture and also corporate culture. This study contributes to examine the literature to understand the role of culture in Entrepreneurial Orientation (EO) and business performance. Study will discuss the direct and indirect effect of various cultures that have the potential to influence business activities, decision making and productivity. The various dimensions of EO are considered as important source of firm‟s survival in the competitive market. The success of such firms depends on the culture of the business performance. This shows that EO, business performance and culture, are inter-related as well as inter-dependent. The findings of the study will help to enhance the understanding of this inter-dependence and role of culture in EO and business performance.