Influence of entrepreneurial orientation on the financial performance: evidence from SMEs in Iran. (1st January 2013)

• Record Type: Journal Article
• Authors: Jalali, Alireza; Jaafar, Mastura; Thurasamy, Ramayah
• Is Part Of: Middle East journal of management. Volume 1:Number 2(2013)
• Page Start: 168
• Page End: 185
• Publication Date: 2013-01-01
• Subjects: entrepreneurship -- entrepreneurial orientation -- innovativeness -- proactiveness -- risk taking -- small and medium enterprises -- SMEs -- Iran; Management -- Middle East -- Periodicals; Organizational effectiveness -- Middle East -- Periodicals; Organizational behavior -- Middle East -- Periodicals; 658.00956
• Languages: English
• ISSNs: 2050-3636

Abstract

This study investigates entrepreneurial orientation (EO), resource-based view (RVB), and small and medium enterprises (SMEs) in Iran. Specifically, this study examines the relationship between EO and financial performance among SMEs in Iran. Using an original dataset of 150 SMEs in the manufacturing industry, a positive relationship was found between EO dimensions (i.e., innovativeness, proactiveness, and risk taking) and SME financial performance dimension (i.e., growth-profitability). These findings contribute to the importance of RBV as an underpinning theory that stresses a firm's unique proprietary assets, particularly intangible assets such as EO.