Entrepreneurial Orientation as a Driver of Innovation in Small and Medium Enterprises

Abstract

In the context of global competition and increasingly complex market dynamics, small and medium enterprises (SMEs) are required to continuously innovate to maintain their competitiveness. This study aims to examine the role of entrepreneurial orientation in driving innovation within SMEs through a literature-based approach. Findings from various studies indicate that the proactive, risk-taking, and innovative dimensions of entrepreneurial orientation have a significant impact on innovation performance. These dimensions not only shape strategic behavior but also serve as catalysts for organizational transformation, enabling SMEs to adapt more effectively to external changes. The literature shows that entrepreneurial orientation contributes to product development, technological adoption, and the improvement of business processes, all of which enhance the overall competitiveness of SMEs. This study provides both theoretical and practical insights into how strengthening entrepreneurial attitudes can support sustainable growth in SMEs. Furthermore, it highlights the importance of integrating entrepreneurial orientation into long-term strategies to ensure resilience and adaptability in an ever-changing business environment.