Exploring Curvilinear Relationship between Entrepreneurial Orientation and Firm Performance

Global Journal of Business and Social Science Review, Vol. 1(3), p. 17-25, 2013

9 Pages Posted: 18 Jul 2017 Last revised: 28 Mar 2018

See all articles by Gunathilaka Samantha

Gunathilaka Samantha

University of Brunei Darussalam

Gamini Premaratne

University of Illinois at Urbana-Champaign - Department of Economics; University of Brunei Darussalam

Date Written: August 5, 2013

Abstract

Objective - The vital role of entrepreneurial orientation (EO) on firm performance has been widely studied in developed countries. Most studies have found a positive linear relationship between EO and firm performance. However, the empirical findings are inconclusive. According to the recent literature, one possible reason for these inconsistent findings may be the nature of the relationship between EO and firm performance is not linear as assumed by many researchers. The objective of this study is to examine the relationship between EO and firm performance and specially to determine the best representation is whether linear or curvilinear.

Methodology/Technique - This study utilizes a sample of 580 small medium enterprises (SME's) from two provinces in Sri Lanka and hierarchical regression analyses was employed for analyzing the relationships.

Findings - Findings demonstrate an S-shape curvilinear relationship between EO and firm performance in the context of SME's in Sri Lanka.

Keywords: Entrepreneurial Orientation; Firm Performance; Small Medium Enterprises; Curvilinear Relationship

JEL Classification: L20; L26; M10; M19; M20

Suggested Citation

Wadu Thanthiri, Samantha and Premaratne, Gamini and Premaratne, Gamini, Exploring Curvilinear Relationship between Entrepreneurial Orientation and Firm Performance (August 5, 2013). Global Journal of Business and Social Science Review, Vol. 1(3), p. 17-25, 2013, Available at SSRN: https://ssrn.com/abstract=3000883

Samantha Wadu Thanthiri (Contact Author)

University of Brunei Darussalam ( email )

Jalan Tungku Link
Gadong
Bandar Seri Begawan, BE1410
Brunei

Gamini Premaratne

University of Brunei Darussalam ( email )

Jalan Tungku Link
Gadong, BE1410
Brunei

University of Illinois at Urbana-Champaign - Department of Economics ( email )

410 David Kinley Hall
1407 W. Gregory
Urbana, IL 61801
United States

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