**1. Introduction**

Small- and medium-sized enterprises (SMEs) are increasingly confronted by challenges and opportunities in international markets. Together with large corporations, smaller firms are among the key players in international trade. Smaller firms that belong to traditional (lowtech and labour-intensive) industries can find here opportunity for growth or challenge their survival. In fact, they are particularly vulnerable to global competition, particularly from players located in low-labour-cost economies. In order to achieve competitiveness in this context, smaller firms need to develop unique, firm-specific assets [1].

In fact, developments in this global economy have changed the traditional balance between customer and supplier. New communications and computing technology, and the reasonably open global trading systems, mean that customers have more choices and supply alternatives

that are more transparent. Therefore, firms need to be more customer-centric, especially since technology provides low-cost information and customer solutions and constantly re-evaluates their value propositions [2].

Several empirical studies indicate a positive correlation between entrepreneurial orientation and organisational growth (e.g. [8, 10, 15–17]). Similarly, other studies also confirm that entrepreneurial orientation has a positive correlation with export's performance, enhancing business growth (e.g. [18, 19]). Clearly, this link seems to be one of the few "universal" ones in the management research. However, the strength of this positive association varies considerably

Entrepreneurial Orientation and Firm Performance http://dx.doi.org/10.5772/intechopen.72009 25

Entrepreneurial orientation has been characterised by certain constructs that represent organisation's behaviour. Starting from Miller's [8] definition, three dimensions were identified: innovativeness, proactiveness and risk-taking. Innovativeness is the predisposition to engage in creativity and experimentation through the introduction of new products/services as well as technological leadership in new processes. Risk-taking involves taking bold actions by venturing into the unknown and/or committing significant resources to ventures in uncertain environments. Proactiveness is an opportunity-seeking, forward-looking perspective characterised by the introduction of new products and services ahead of the competition and acting in anticipation of future demand [21]. Collectively, these dimensions can enhance firm's ability to recognise and exploit international market opportunities well ahead

EO influences firm performance when firms strategically acquire, develop and leverage resources for opportunity exploitation in order to gain competitive advantage. Therefore, EO

The use of efficient worldwide communications technology and transportation, the decrease in governments' protectionist policies and the decrease of geographically protected markets have made it possible, and necessary, for many firms to view their operating domains as global [22]. Moreover, small countries with constricted domestic markets depend on the success of small firms who can export successfully and grow to a scale beyond that which their

Literature on export performance is extensive, but arguably, it has not yet achieved the consensus required to prescribe exporting strategies to small firm [24]. Exporting is an early phase in the internationalisation model established by Johanson and Vahlne [25, 26], grounded on the assumption that new exporters can gradually engage with foreign markets, depending their exploitation strategy on knowledge and other resources. This export research, however, was not pertinent for small exporters [24], since its unit of analysis was

In a recent literature review, Sousa et al. [6] concluded that, along with internal capabilities and competencies, the main determinants of export performance are firm size and international experience. Actually, internationalisation processes have been mainly studied with reference to multinational corporations and less for SMEs because smallness is usually considered as a problem, as these firms often have a disadvantage in resource access [27]. This, however, does

not support small firm managers in search of a growth strategy through exporting.

should be associated with the concept of competitive strategy [23].

across national contexts [20].

of its competitors [22].

**2.2. Export performance**

large firms.

home market could support [24].

Firm survival is the lowest when firms are small; thus, the development of effective strategies is critical for the continuity of business [3]. According to the extant literature, increasing business competitive position, particularly SMEs, is of pivotal importance for the development and renewal of national economies [4]. At present, although SMEs are recognised as important contributors to modern economies, our understanding of how they thrive in an increasingly competitive environment and achieve growth is limited [5]. Thus, it is important to understand the drivers of SME performance.

Our study is responsive to the call of Sousa et al. [6], which suggests that in the context of international markets, firms' survival and expansion, and consequent economic growth of many countries, are strongly dependent on a better understanding of the determinants that influence export performance. In fact, the factors that set off SME growth (including exporting) are still in need of research [7]. Therefore, the purpose of this chapter is to broaden the boundaries of entrepreneurship and strategic management literature and test the following hypotheses―*does entrepreneurial orientation positively influences small business export performance?*

Our research specifically focuses on SMEs excluding larger organisations. This focus allows us to draw detailed conclusions for this specific context. Therefore, building on the entrepreneurship literature, this empirical study assesses the influence of entrepreneurial orientation on export performance of Portuguese textile SMEs.

The chapter is structured as follows. First, it reviews the relevant literature for entrepreneurial orientation and export performance before developing hypothesis. Second, it describes the research design of the empirical study. Thereafter, the study findings are presented, followed by the discussion of the research, which concludes with the limitations of the study and suggestions for future research.
