The Impacts of Entrepreneurial Orientation on Organizational Performance: Study of Pakistani SMEs

Entrepreneurial orientation has been the area of interest by many researchers in the field of entrepreneurship and management. However, empirical evidences reveal that most of these studies have been conducted in developed countries and have reported mixed results. Analyses on the subject in developing countries are lacking. This study investigates the role of entrepreneurial orientation on firm performance. This study used survey data from a random sample of 213 small and medium sized enterprises (SMEs) located in Sialkot region, Province of Punjab Pakistan. The findings support the hypothesis that entrepreneurial orientation associates with firm performance. This study contributes to the body of knowledge by taking EO as five dimensional construct (innovativeness, risk taking, proactiveness, competitive aggressiveness, autonomy) rather three dimensional construct. and organizational performance comprising of non financial indicators such as customer satisfaction, employees satisfaction, service quality, innovation and growth. The study offers suggestions to policy makers and future directions.