Advances in Management and Applied Economics

Influence of Entrepreneurial Orientation and Business Environment on Small and Medium Firm Performance: A PLS Approach

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  • Abstract

    The purpose of this study is to investigate the relationship of entrepreneurial orientation and business environment on firm performance, underpinned by Resource based view. Their relationship receives a considerable scholarly attention in the literature, but few studies have been conducted among Nigerian SMEs. SMEs are considered as important to the economic growth of Nigeria and they constitute the major source of employment and significantly contribute to the gross domestic production. Based on the theoretical consideration, a model was proposed to examine this relationship. A quantitative method was used with a total of 640 questionnaires personally distributed to the owner/managers of SMEs in Nigeria. A total of 511 questions was duly completed and returned representing 79.8% response rate. The study finding is in support of previous researchers who have suggested the positive relationship of entrepreneurial orientation and firm performance in many organizations. The finding from the study indicated no relationship between the business environment and firm performance. The finding from this study will benefit SME owner/managers, regulatory agency ie small and medium enterprise development agency of Nigeria, it will also help in policy formulation and will serve as a frame of future reference.