Framework of entrepreneurial orientation and networking: a study of SMEs performance in a developing country

SMEs with higher levels of Entrepreneurial Orientation (EO) have been found to perform better than those, which lack such orientatiol1. The dimensions of EO, namely autonomy, innovativeness, risktaking, proactive, and competitive aggressiveness contribute to firm performance independently. However, these EO dimensions are considered insufficient for the SMEs to enter global markets. Due to their limited resources and lack of knowledge as well as access to foreign markets, SMEs in developing countries (such as in Indonesia) that participate in international business have to possess the capability to establish networks. Networking also provides firms to gain access to resources that they do not possess. This study proposes a conceptual framework that integrates the capability to establish networking in the EO - performance relationship.