Role of Entrepreneurial Orientation in SME Performance: Examining the Impact of Individual Dimensions

Ezenne Chinenye Christiana and Gazi Md Nurul Islam
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Ezenne Chinenye Christiana: Tun Razak Graduate School, University Tun Abdul Razak, 195A, Jalan Tun Razak, Hampshire Park, 50450, Kuala Lumpur, Malaysia.
Gazi Md Nurul Islam: Tun Razak Graduate School, University Tun Abdul Razak, 195A, Jalan Tun Razak, Hampshire Park, 50450, Kuala Lumpur, Malaysia.

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 5, 344-357

Abstract: Small and Medium Enterprises (SMEs) are essential to Nigeria’s economic growth, yet their performance remains constrained by multiple external challenges. Previous studies have primarily attributed SME performance issues to financial constraints, poor infrastructure, and regulatory inefficiencies. These external barriers are widely studied but the role of internal strategic behaviours, particularly Entrepreneurial Orientation (EO), in driving SME performance remains underexplored. This study examines the impact of five EO dimensions—Innovativeness, Risk-taking, Autonomy, Proactiveness, and Competitive Aggressiveness—on SME performance in Nigeria to determine which dimensions contribute mostly to business success. A quantitative research approach was adopted, using systematic random sampling to collect data from 211 SME owners and managers in Lagos State, Nigeria. Data were analysed using Spearman correlation and multiple regression analysis to assess the direct impact of EO dimensions on firm performance. The results indicates that Innovativeness, Proactiveness, and Competitive Aggressiveness significantly enhance SME performance, indicating that firms that prioritize innovation, anticipate market trends, and aggressively challenge competitors tend to achieve better financial and non-financial outcomes. However, Risk-taking and Autonomy were found to have no significant direct effect on SME performance. This suggests that strategic market engagement and innovation are key drivers of SME success in Nigeria, while risk-taking and autonomy may be limited by external constraints. The findings offer valuable insights for SME owners, policymakers, and researchers. Encouraging innovation and proactive strategies can strengthen SME growth, while future research should explore sector-specific and external moderating factors to refine EO strategies further.

Date: 2025
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