ABSTRACT

Entrepreneurial orientation (EO) has received considerable theoretical and empirical attention as one of the important factors influencing firm performance. Despite growing scholarly interest, the development of body of knowledge in EO is limited due to inconclusive evidence and lack of integration of the efforts to build up each other’s results. The objective of this study was to examine the relationship between firm performance and dimensions of EO by taking different firms in Ethiopia. The study was based on the data from 147 sampled firm manager respondents conducted in 2019. The study found that competitive aggressiveness and autonomy as dimensions of EO are positively and significantly related to firm performance. However, the positive and significant relationship of risk-taking, innovativeness, and pro-activeness was not supported in this study. Based on the findings, it is recommended that firms operating in the Ethiopian market context need to emphasize on competitive aggressiveness, and autonomy dimensions of EO to enhance their performance.