Entrepreneurial Orientation and Small Business Performance: The Role of Emergent Strategy

The research on entrepreneurial orientation (EO) is undecided as to whether a specific EO improves firm performance. We considered EO in a different light by examining the role of emergent strategy. By considering entrepreneurial orientation as it is effected by emergent strategy, we found a positive relationship between entrepreneurial orientation and performance. Using Mintzberg's theory of emergent strategy, we investigated and found a negative moderating effect of emergent strategy on the relationship between entrepreneurial orientation and performance. We tested these hypotheses using data of small and medium enterprises (SMEs) from Mexico.