The Effects of Strategic Orientations and Perceived Environment on Firm Performance.

Among micro, small, and medium-sized firms located in Hungary, I conducted a survey examining the effects of entrepreneurial and learning orientations, and that of perceived environment on firm performance. I studied the perceptions of environmental turbulence and environmental hostility. Three dimensions were examined both in the case of entrepreneurial orientation (i.e., innovativeness, proactiveness, and risk taking) and in the case of learning orientation (i.e., commitment to learning, shared visions, and open-mindedness). The effects of such dimensions on firm performance were analyzed with the path analysis (PLS-SEM) method. In the course of the research, firm performance was divided into three dimensions: efficiency, growth, and profit. The possible effect of available financial resources was also taken into consideration. Results show that the availability of financial resources is relatively important, although it is connected only to the growth dimension of performance. Strategic orientations should be interpreted as multi-dimensional, and they have an effect on different performance dimensions. The research was cross-sectional and has implications for long-term strategic decisions. [ABSTRACT FROM AUTHOR]