Effects Of Entrepreneurial Orientation On Business Performance: A Study Of SSIs In Ludhiana | Gurjeet Kaur & Stanzin Mantok

Entrepreneurial orientation (EO) plays an important role in influencing business performance through its three dimensions, which significantly predict an organisation?s subjective and objective performance. In this context, the present study examines the effect of three components of entrepreneurial orientation on business performance of SSIs in Ludhiana. Based upon a sample of 127 manufacturing industries, the study found that among the three dimensions of EO, proactiveness has a positive and significant impact on firm?s subjective performance, though this relationship is not so strong. Thus, SSIs should lay more emphasis on proactiveness, as it also has significant impact on other two dimensions of EO, viz., risk-taking and innovativeness. In order to be more proactive, SSIs should lay greater emphasis on forward-thinking strategic planning, anticipate the future problems, needs and changes. On the whole, SSIs should try to extract quality information from the market regarding customers and competitors. They can become proactive by generating market information and responding to those changes more efficiently and effectively than the competitors. Results also reveal that subjective measures have a significant impact on objective business performance