Entrepreneurial Orientation and Business Performance: An Assessment of past Research and Suggestions for the Future

TLDR

Entrepreneurial orientation (EO) has attracted significant conceptual and empirical attention, forming a growing body of knowledge in entrepreneurship research. This study aims to document, review, and evaluate the cumulative evidence on the EO–business performance relationship. A meta‑analysis of 53 samples from 51 studies (N = 14,259 firms) examined the EO–performance link and tested potential moderators. The analysis revealed a moderate positive correlation (r = .242) that is robust across operationalizations and cultures, with internal and environmental moderators identified and further moderator research recommended.

Abstract

Entrepreneurial orientation (EO) has received substantial conceptual and empirical attention, representing one of the few areas in entrepreneurship research where a cumulative body of knowledge is developing. The time is therefore ripe to document, to review, and to evaluate the cumulative knowledge on the relationship between EO and business performance. Extending beyond qualitative assessment, we undertook a meta–analysis exploring the magnitude of the EO–performance relationship and assessed potential moderators affecting this relationship. Analyses of 53 samples from 51 studies with an N of 14,259 companies indicated that the correlation of EO with performance is moderately large (r = .242) and that this relationship is robust to different operationalizations of key constructs as well as cultural contexts. Internal and environmental moderators were identified, and results suggest that additional moderators should be assessed. Recommendations for future research are developed.