The moderating effect of the external environment on the entrepreneurial orientation-organisational performance relationship: the case of Nigeria

Orajiaka, P. I. (2026) The moderating effect of the external environment on the entrepreneurial orientation-organisational performance relationship: the case of Nigeria. DBA thesis, University of Reading. doi: 10.48683/1926.00129974

Abstract/Summary

It has been observed that a high entrepreneurial orientation (EO) leads to positive business performance among Small and Medium-sized Enterprises (SMEs) irrespective of location; therefore, this study examined the moderating role of the external environment (EE) in the relationship between EO and organisational performance (OP) of SMEs in Nigeria. Employing a quantitative research method anchored on the Resource-Based View (RBV), Dynamic Capabilities Theory (DCT), and Contingency Theory, a sample size of 790 was selected from 29,536 owners and top managers of SMEs across Nigeria's six geo-political zones (South-East, South-South, South-West, North-Central, North-East, and North-West); of the 750 questionnaires administered, 630 responded (an 84% response rate), with 304 responses found usable. Two research questions were raised in line with the study's objectives, and a Partial Least Squares-Structural Equation Modelling (PLS-SEM) analysis was performed to test the hypotheses. Findings revealed that three of the five dimensions of entrepreneurial orientation - innovativeness, competitive aggressiveness, and autonomy - have a significant positive influence on organisational performance, while risk taking and proactiveness showed no significant influence. Furthermore, the external environmental factors of munificence, dynamism, and hostility were found to have no moderating effect on the EO-OP relationship of Nigerian SMEs; however, the environmental complexity of the Nigerian economy does exert a moderating influence on the relationship between entrepreneurial orientation and SMEs' performance. The study thus recommended that SMEs adopt strategies emphasising innovativeness, competitive aggressiveness, and autonomy, considering their significant positive impact on OP, improve their operational levels for enhanced performance and profitability, critically examine their external environmental factors when planning business strategies, and that government policy should guide regulatory authorities to prioritise strategies that mitigate the negative influence of specific EE constructs on the EO-OP relationship among Nigerian SMEs.

Item Type	Thesis (DBA)
URI	https://centaur.reading.ac.uk/id/eprint/129974
Identification Number/DOI	10.48683/1926.00129974
Divisions	Henley Business School
Date on Title Page	September 2025
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