Entrepreneurial Orientation as a Predictor of Financial and Non-financial Performance in Medium and Large Enterprises

Entrepreneurial orientation (EO) is widely discussed in relation to enterprise performance, yet the associations of its individual dimensions with financial and non-financial outcomes may differ. This paper aims to clarify the relationship between the dimensions of entrepreneurial orientation and enterprise financial and non-financial performance. Entrepreneurial orientation is analysed through five key dimensions: risk-taking, innovativeness, proactiveness, competitive aggressiveness, and autonomy. The empirical research was based on a sample of 152 medium- and large-sized enterprises in Bosnia and Herzegovina. Data were collected using a questionnaire survey. Descriptive statistics, Pearson's correlation analysis, and simple linear regression analysis were employed to examine the relationships between entrepreneurial orientation and enterprise performance. Separate regression models were estimated for each EO dimension and for the overall EO score, with financial and non-financial performance examined as separate dependent variables. The results of the correlation analysis indicate a significant positive relationship between all dimensions of entrepreneurial orientation and enterprise performance. Specifically, a moderately positive correlation was found between all five dimensions of entrepreneurial orientation and non-financial performance, as well as between proactiveness, competitive aggressiveness, autonomy, and financial performance. Additionally, a low but significant positive correlation was observed between risk-taking, innovativeness, and financial performance. Separate simple linear regression models showed that each EO dimension was a significant positive predictor of both financial and non-financial performance (p < 0.001). The models using the overall EO score explained 23.4% of the variance in financial performance and 37.3% of the variance in non-financial performance. The findings indicate that higher scores on the five entrepreneurial orientation dimensions are associated with higher financial and non-financial performance scores. The research provides valuable insights for managers and entrepreneurs regarding strategies that can enhance both the financial and non-financial aspects of their enterprises' performance.