Entrepreneurial Orientation and Business Performance: Evidence from Hungarian SMEs

Abstract

Background: Entrepreneurial orientation (EO) is a central concept in strategic management research; however empirical evidence on its performance implications remains context dependent. In particular, studies from Central and Eastern Europe are scarce despite the economic significance of small and medium-sized enterprises in the region.

Purpose: This study examines the relationship between entrepreneurial orientation and business performance in Hungarian small and medium-sized enterprises. This study also explores whether firm performance and entrepreneurial orientation vary across managerial gender, industry affiliation, and geographic location.

Study design/methodology/approach: This research is based on a cross-sectional survey of 415 Hungarian SMEs conducted in 2024. Entrepreneurial orientation was measured using multi-item Likert scales for the three sub-dimensions, while firm performance was assessed through self-reported indicators. Linear regression and chi-square tests were used to analyze the relationships and contextual differences.

Findings/conclusions: The findings show a positive relationship between entrepreneurial orientation and firm performance. Innovation and proactivity are strongly associated with performance outcomes, whereas risk-taking exhibits a comparatively weaker relationship. Significant differences in entrepreneurial orientation and performance are observed across gender, industry and regional contexts.

Limitations/future research: This study contributes to entrepreneurial orientation research by providing evidence from a Central and Eastern European transition economy and reinforcing the multidimensional nature of entrepreneurial orientation. The results highlight the importance of contextual factors in shaping the performance of entrepreneurial behavior.