Entrepreneurial orientation and firm performance: How can micro, small and medium-sized enterprises survive environmental turbulence?

Abstract

This study investigates the entrepreneurial ecosystem to determine the role of environmental turbulence in the relationship between entrepreneurial orientation (EO) and firm performance. This study attempts to provide additional insight to understand the relationship between EO and performance. This study uses a structural equation model with data from micro, small and medium-sized enterprises operating in Indonesia. The results indicate that environmental turbulence may have either a positive or negative impact on firm performance by encouraging firms to be more effective and achieve greater performance or having a negative effect on firms with superior entrepreneurial orientation.