Entrepreneurial orientation and business performance: An integrative model proposition and empirical analysis

This study aimed to examine the level of entrepreneurial orientation (EO) of 128 medium-sized manufacturing companies in Adana, and its potential influence on their performance. A study model consisted of business strategy, organizational structure, environmental uncertainty, firm resources, industry life cycle, and firm performance was developed based on previous researches. The impact of each of business strategy, organizational structure, environmental uncertainty, firm resources, and industry life cycle on both entrepreneurial orientation and on EO-firm performance was investigated separately. Research findings suggest that entrepreneurial oriented firms perform better than conservative firms. Moreover, organizational structure, environmental dynamism and hostility, and non-financial resources had impact on the level of entrepreneurial orientation in the manufacturing companies. Research findings suggest that environmental hostility has a moderation affect in the relationship between entrepreneurial orientation and firm performance. Thus, in benign environments the EO and relative competitive performance relationship will be stronger. Entrepreneurial firms are also more likely to be prospectors and analyzers rather than reactors. Prospectors perform better than reactors.