Entrepreneurial Orientation (EO) and Performance Among Micro, Small and Medium Enterprises (MSMEs) (From an RBV Perspective)

The research aims to examine the influence of entrepreneurial orientation (EO) on the performance of Micro, Small and Medium Enterprises (MSMEs) from the RBV perspective. RBV says that to achieve sustainable competitive advantage requires resources, these resources can be tangible or intangible resources, are heterogeneous, not perfectly distributed and must meet the VRIN (Valuable), Rare (rare), imitable framework (not easily imitated) and In-imitable (Not replaceable). Entrepreneurial orientation (EO) has been identified as one of the most significant resources that determines company performance and competitive advantage. The concept of EO manifestation consists of innovation, proactiveness, autonomy, competitive aggressiveness, and risk taking. As a result, companies with high EO are considered more innovative in terms of product and market combinations, take bold strategic decisions to seize new opportunities, and stay ahead of the competition. They are also known to favor high-risk, high-reward activities. These behavioral patterns are intangible and distributed among members of the organization, so they are rare, valuable, and cannot be imitated or replaced. Also, it strengthens the valuable, rare, non-substitutable and non-imitable elements of EO resources. A company's EO is unique to that company, so it becomes a source of performance improvement and sustainable competitive advantage.