Entrepreneurial Orientation and Firm Performance: A Systematic Review

Abstract

The purpose of this study is to review a number of articles that examine the relationship between entrepreneurial orientation and firm performance, especially in small and medium enterprises in the period 2016 to 2021. The method used to conduct this systematic review is to examine the selected literature in a systematic and structured manner. Most of the results of a systematic review show that studies of Entrepreneurial Orientation and Firm Performance in various countries indicate relatively the same results, namely Entrepreneurship Orientation has a positive and significant effect on Firm Performance. However, specific finding shows that the dimension of innovation has more positive influence on the orientation of entrepreneurship. The small companies that are proactive to external stimuli are not only more innovative, but also have Entrepreneurial Orientation capabilities that support the firm performance in international markets. Other studies show that EO and FP have a positive and significant positive relationship such as in economically depressed areas, in areas with high environmental dynamics, and areas with hostile environments. Meanwhile, the other findings confirm that EO is the main strategic resource, and with Learning Orientation, the organization can utilize this resource more effectively.