Entrepreneurial Orientation and Financial Performance of Small and Medium Enterprises: A Literature Review and a Conceptual Model for the Moroccan Context
DOI:
https://doi.org/10.54536/ajase.v5i2.8175Keywords:
Entrepreneurial Orientation, Financial Performance, Innovation, Proactiveness, Risk-TakingAbstract
This paper reviews the literature on the relationship between entrepreneurial orientation (EO) and the financial performance of small and medium enterprises (SMEs). Drawing on foundational conceptual frameworks, the paper examines the three classical dimensions of EO -- risk-taking, proactiveness and innovation -- and their association with four indicators of financial performance: revenue growth, profitability, liquidity and leverage. The synthesis of empirical work reveals mixed findings, particularly a non-linear relationship between risk-taking and performance, and highlights the role of contingency factors such as firm size, industry and environmental turbulence. Building on this review, the paper proposes a conceptual model and a set of research hypotheses tailored to the study of Moroccan SMEs, a context that remains underexplored in the literature. The paper concludes by identifying avenues for future empirical research on the perceived entrepreneurial competencies of founders/managers and their influence on firm financial performance.
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