Entrepreneurial Orientation and Small and Medium Enterprises (SMES) Performance in Lagos State, Nigeria


  • Oladele Ayodeji Ilesanmi Osun State University
  • Idris Adegboyega Onikoyi Osun State University
  • Nafiu Isola Badiru Osun State University


Entrepreneurial orientation; Intangible resources; SMEs; Business performance


The main objective of every entrepreneur in any given economy is to improve the performance of
the business. However, to achieve this goal require the combination of many business resources that work
together. Some resources are tangible, while others are intangible resources needed by an organisation to
improve performance if effectively deployed. This paper studied the impact of Entrepreneurial Orientation
(EO) on the organisational performance of Small and Medium-Sized Enterprises (SMEs) in Lagos State,
Nigeria, as well as the role of Market Orientation (MO) as a moderator on the relationship between
Entrepreneurial Orientation and organsational performance. The study employed survey research design with
the use of structured questionnaire. A simple random sampling technique was adopted, and 448
questionnaires were retrieved and analyzed from 520 administered questionnaires among SMEs in Lagos
State, Nigeria. The results of the analysis revealed that the combination of five major drivers of EO
(Innovativeness, Proactiveness, Risk-Taking. Autonomy and Competitive Aggressiveness) have significant
impact on SMEs innovation in Lagos State, with an R2 of 0.986 and a Sig. 0.000. The study also revealed the
moderating role of MO on the interaction between EO and SMEs performance to be significant at adjusted
R2of 0.981, Sig. 0.000. The study recommended that Managers/Owners of SMEs should adopt all the five
major drivers of EO in their business decision-making process. Also consider the need for the creation of
marketing department or dedicated employee to take the marketing role, to drive competitive advantage,
through innovation.

Author Biography

Oladele Ayodeji Ilesanmi, Osun State University

Professor, Department of Business Administration


Abdulrab, M.; Al-Mamary, Y.H.S.; Alwaheeb, M.A.; Alshammari, N.G.M.; Balhareth, H. & Al-Shammari, S. A. (2021).

Mediating role of strategic orientations in the relationship between entrepreneurial orientation and performance of Saudi

SMEs. Brazilian Journal of Operations & Production Management, 18(4), pp. 1-15.

Adams, P.; Bodas, I. M. & Fontana, F. (2019). Strategic orientation, innovation performance and the moderating influence of

marketing management. Journal of Business Research, 97, p. 129.

Adegbuyi, A.A.; Oladele, P.; Iyiola, O.O.; Adegbuyi, O.A.; Ogunnaike, O.O., Ibidunni, A.S., & Fadeyi, O. (2018). Assessing

the influence of entrepreneurial orientation on SMEs’ performance. International Journal of Entrepreneurship, 22(4), pp. 1-

Asad, M.; Ahmad, I.; Haider, S.H. & Salman, R. (2018). A critical review of Islamic and conventional banking in the digital

era: A case of Pakistan. International Journal of Engineering and Technology, 7(4.7), pp. 57-59.

Asad, M.; Sharif, M.N. & Hafeez, M. (2016). Moderating effect of network ties on the relationship between entrepreneurial

orientation, market orientation, and performance of MSEs. Paradigms: A Research Journal of Commerce, Economics, and

Social Sciences, 10(2), pp. 74-81

Balla, D.; Fatiha, F. & Ibrahima-Samba, D. (2018). The mediating role of innovativeness in the relationship between market

orientation and performance: An application to Senegalese agri-food VSEs. Transnational Corporations Review, 10(2), pp.


Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), pp. 99-120.

Best, Roger J. (2009). Market-Based: Strategies for growing customer value and profitability. Fifth edition.Newjersey :

Pearson Education, Inc.

Cho, Y.H. & Lee, J.-H. (2018). Entrepreneurial orientation, entrepreneurial education and performance. Asia Pacific Journal

of Innovation and Entrepreneurship, 12 (2), pp. 124-34.

Di Stefano, G.; Peteraf, M. & Verona, G. (2010). Dynamic capabilities deconstructed: a bibliographic investigation into the

origins, development, and future directions of the research domain. Industrial and Corporate Change, 19(4), pp. 1187-1204.

Ejdys, J. (2016). Entrepreneurial orientation vs. innovativeness of small and medium size enterprises. Journal of

Engineering, Project, and Production Management, 6(1), pp. 13-24

Etim, J.J.; Adabu, M.U. & Ogar, C.A (2017). Influence of entrepreneurial orientation as survival strategy for small and

medium enterprises: The Nigeria experience. International Journal of Economics, Commerce and Management, 2(2), pp.


Genc, E.; Dayan, M. & Genc, O.F. (2019). The impact of SME internationalization on innovation: The mediating role of the

market and entrepreneurial orientation. Industrial Marketing Management, 82, pp. 253–264.

Hernández-Sánchez, B.R.; Cardella, G.M. & Sánchez-García, J.C. (2020). Psychological factors that lessen the impact of

COVID-19 on the self-employment intention of business administration and economics students from Latin America.

International Journal of Environmental Research and Public Health, 17(15), pp. 52-93

Hidayat, C.; Suryana, Y.; Afiff, F. & Cahyandito, M.F. (2016). The relationship of entrepreneurial and market orientation,

marketing mix. International Journal of Economics, Commerce and Management, IV(9), pp. 611–622.

Hidayat, R.; Akhmad, S. & Mu’alim. (2015). Effects of environmental factors on corporate strategy and performance of

manufacturing industries in Indonesia. Journal of Industrial Engineering and Management, 8(3), pp. 763-766

Hsiung, H. H. & Tsai, W. C. (2017). The joint moderating effects of activated negative moods and group voice climate on the

relationship between power distance orientation and employee voice behaviour. Applied Psychology, 8(1), pp. 44-61.

Ibidunni, A.S.; Olokundun, M.A.; Oke, A.O. & Nwaomonoh, I.C. (2017). Enhancing the performance of agro-based SMES:

The role of entrepreneurship competencies. Covenant Journal of Entrepreneurship, 1(1), pp. 44-51

Jogaratnam, G. (2017). The effect of market orientation, entrepreneurial orientation and human capital on positional

advantage: Evidence from the restaurant industry. International Journal of Hospitality Management, 60, pp. 104- 113

Kirca, A. H.; Jayachandran, S. & Bearden, W. O. (2005). Market orientation: A meta-analytic review and assessment of its

Antecedents and impact on performance. Journal of Marketing, 69, pp. 24–41

Kiragu, D. N. (2016). Influence of financial innovations on financial performance of savings and credit co-operative societies

in Nyeri County, Kenya. Nairobi: University of Nairobi.

Kotler, P. & Keller, K. L. (2007). Marketing management. New Delhi: Prentice-Hall of India P. Ltd

Lawal, Fatai; Omotayo, Adegbuyi; Oluwole, O. Iyiola; Omisade, Ezekiel Ayoade & Akeem A. Taiwo. (2018). Nexus

between informal networks and risk-taking: Implications for improving the performance of SMES in Nigeria. Academy of

Strategic Management Journal, 17 (2) pp. 1-13.

Linyiru, B. M. & Ketyenya, R. P. (2017). Influence of competitive aggressiveness on the performance of state corporations in

Kenya. International Journal of Entrepreneurship, 2(1), pp. 1-14.

Lonial, S. C. & Carter, R. E. (2015). The impact of organisational orientations on firm performance: A resource-based

perspective. Journal of Small Business Management, 53(1), pp. 94-113.

Mahmutaj, Lura Rexhepi & Besnik Krasniqi (2020). Innovation types and sales growth in small firms : Evidence from

Kosovo, 15(1), pp. 27–43. doi: 10.2478/jeb-2020-0003.

Masa‟deh, R.; Al-Henzab, J.; Tarhini, A. & Obeidat. B.Y. (2018). The associations among market orientation, technology

orientation, entrepreneurial orientation and organisational performance. Benchmarking: An International Journal, 25(8), pp.


Olubiyi, T. O.; Egwakhe, A. J.; Amos, B., & Ajayi, A. A. (2019). Entrepreneurial orientation and firm profitability: Evidence

from Lagos State Nigeria. Journal of Business and Management, 21(6), pp. 42–54.

Peterson, N. M. (2019). Influence of strategic entrepreneurial orientation on the growth of SMEs manufacturing firms in

Kenya : A Literature-Based Review Nduati Munyua 3, pp. 1–13.

Presutti, M., & Odorici, V. (2018). Linking entrepreneurial and market orientation to the SME‟s performance growth: The

moderating role of entrepreneurial experience and networks. International Entrepreneurship and Management Journal, 2(1),

pp. 67-82

Schumpeter, J. A. (1934). The theory of economic development. Cambridge, MA.: Harvard University Press.

Schumpeter, P. (2011). Entrepreneurship development in small scale business. Turkey: Labson resource Istanbul Ltd

Shah, M. & Asad, M. (2018). Effect of motivation on employee retention: Mediating role of perceived organisational

support. European Online Journal of Natural and Social Sciences, 7(2), pp. 511-520

Shu, C.; De Clercq, D.; Zhou, Y. & Liu, C. (2019). Government institutional support, entrepreneurial orientation, strategic

renewal, and firm performance in transitional China. International Journal of Entrepreneurial Behavior & Research. 45(3),

pp. 22-49.