Title: Influence of entrepreneurial orientation on the financial performance: evidence from SMEs in Iran

Authors: Alireza Jalali; Mastura Jaafar; Ramayah Thurasamy

Addresses: Project Management Department, University Sains Malaysia, E-22-05 Sunny Ville Condo, Jln Batu Oban, Gelogure, Penang, 11700, Malaysia ' Quantity Surveying Department, School of Housing Building and Planning, USM 11800 Penang, Malaysia ' School of Management, Universiti Sains Malaysia, Room 118, Level 1, 11800 Minden, Penang, Malaysia

Abstract: This study investigates entrepreneurial orientation (EO), resource-based view (RBV), 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.

Keywords: entrepreneurship; entrepreneurial orientation; innovativeness; proactiveness; risk taking; small and medium-sized enterprises; SMEs; Iran; financial performance; firm performance; resource-based view; RBV; manufacturing industry; profitability; intangible assets.

DOI: 10.1504/MEJM.2013.057263

Middle East Journal of Management, 2013 Vol.1 No.2, pp.168 - 185

Received: 17 Jul 2013
Accepted: 07 Aug 2013
Published online: 05 Jul 2014 *

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