The strategy and entrepreneurship literatures suggest that an entrepreneurial orientation (EO) improves firm performance, but the empirical results are mixed. In this article, we investigate the EO of small businesses and find that a main-effects-only analysis provides an incomplete picture of performance. Access to capital and the dynamism of the environment are important to small businesses, and we find that when combined with EO (a three-way interaction model) the configurational approach explains variance in performance over and above a contingency model (two-way interactions) and a main-effects-only model.


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