Firm Performance as a Function of Entrepreneurial Orientation and Strategic Planning Practices

New business creation is essential for our nation\u27s economy and accounts for all net new job creation. However, 56 of small businesses fail within four years of startup. One way to address this issue is to employ an approach combining an entrepreneurial orientation (EO) with key strategic management planning practices for firms seeking to gain a competitive advantage and improve firm performance. Entrepreneurial orientation is the propensity of firms to be innovative, proactive, and be willing to take risks. This research project empirically investigated the relationship among a firm\u27s scanning intensity, locus of planning, planning flexibility and entrepreneurial orientation and firm performance. The sample for this research involved the owners and principal managers of Northeastern Ohio small businesses. Results indicate that a firm\u27s entrepreneurial orientation is positively related to firm performance. However, the positive relationship between strategic planning processes and firm performance was not supported. Environmental uncertainty was shown to have an effect on the relationship between entrepreneurial orientation and performanc