AN IMPACT OF ENTREPRENEURIAL ORIENTATION ON PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN SRI LANKA

Abstract

The Purpose of this research article is to study an emerging trend that has attracted much attention in the
contemporary society. This study attempts to examine the impact of Entrepreneurship Orientation on Performance of
Small and Medium Enterprises in Western Province in Sri Lanka. It is the special intension of this research, to
investigate this effect within the context of different approaches, theories, and models such as Multidimensional
Approaches, Entrepreneurship Theories namely Contingency Theory and Theory of Planned Behaviour (TPB) along with
the model of Lumpkin and Desks in the literature.
Data analyze plan consisted of few steps. Data collection was conceded by 382 SMEs in Sri Lanka using a
structured survey questionnaire. The research hypotheses were tested using Structural Equation Modeling (SEM)
techniques using the Statistical Package of Social Sciences (SPSS). The conceptual framework of this study examined an
effect of EO on the Performance of Small and Medium Enterprises which was tested by computing the validity and
reliability of the instrument applying the factor analysis along with Cronbach’s Alpha to prove the eligibility. Further,
means of descriptive statistics and the structural equation modeling techniques were applied to finalize the results. The
results revealed that the effect of EO on the Performance of Small and Medium Enterprises is statistically significant and
positive.