Abstract

This study aims to examine the interactive effect between strategic flexibility and entrepreneurial orientation on firm performance under fierce competition environment. Data from Chinese small and medium-sized business (SMB) in high-technology industries demonstrate that entrepreneurial orientation and strategic flexibility interact to influence firm performance in such a way that strategic flexibility enhances the positive relationship between entrepreneurial orientation and firm performance. We also observed the difference between Chinese and Western SMBs which showed on the relationship between strategic flexibility and firm performance. Theoretical and managerial implications of the findings are discussed.

Key words: Strategic flexibility, entrepreneurial orientation, firm performance, competition intensity.