Effect of Entrepreneurial Orientation Dimensions on Performance of Small and Medium Enterprises in South Western States in Nigeria

Abstract

The aim of this study is to investigate the relationship between entrepreneurial orientation
dimensions on performance of SMEs. Performance was measured multi-dimensionally, capturing
both financial performance and innovation performance. The study was quantitative in nature, and
partial least square was used to explore the relationship that exists among the study variables. The
sample consists of 296 small and medium enterprises operating in south-western part of Nigeria.
The result revealed an insignificant relationship between risk-taking and financial performance.
However, a significant positive relationship exists among all the other constructs under
investigation. In developing and underdeveloped nations, there have been several government
initiatives to boost and support small and medium enterprises. The present research explores these
relationships in a Nigerian context. The study gives a road map for policymakers, academicians,
and government agencies on possible strategies to improve the performance of small and medium
enterprises.