The contribution of the entrepreneurial orientation to SMEs profitability: a contingent analysis that considers the environment role

This paper aims first to show the effect of the Entrepreneurial Orientation (EO) on SMEs financial performance, and second, to propose a contingency model which explores the moderating effects of environmental hostility of the relationship EO –financial performance. To examine the research hypotheses, a sample of 121 manufacturing SMEs located in Catalonia, Spain has been used. The results confirm a positive EO– financial performance relation, and suggest that a more positive relation exists when there is an adjustment between the EO and the environment. Finally, the academic and entrepreneurial implications related to the EO and the SMEs environment are presented and discussed