Entrepreneurial Orientation and Performance of Small and Medium Enterprises: A Systematic Review

Entrepreneurial Orientation (EO) constitutes a vital strategic element for the success of Small and Medium Enterprises (SMEs). This study seeks to 1) synthesize the dimensions of Entrepreneurial Orientation (EO) that impact SME performance, 2) develop an integrative model illustrating the mediating mechanisms between EO and performance, and 3) consolidate findings into a comprehensive framework. A Systematic Literature Review was conducted, analyzing 31 empirical articles identified through major international and Thai databases based on predefined criteria. Thematic Synthesis was employed for data analysis. The findings indicate that the EO dimensions most affecting performance are Innovativeness, Proactiveness, and Risk taking. However, the direct impact of EO on performance remains inconsistent across studies. The integrative model reveals that this relationship is mediated by key mechanisms, with "Innovation" being the most influential mediator, followed by "Learning Orientation" and "Competitive Advantage." The framework derived from the synthesis suggests that EO acts as a "trigger" that activates organizational capabilities, leading to enhanced performance. These insights elucidate the relationship between EO and SME performance, providing direction for entrepreneurs: to convert concepts into sustainable business success, developing innovation and learning capabilities alongside an entrepreneurial culture is essential.