The IUP Journal of Entrepreneurship Development
Moderating Effect of Environmental Uncertainties on Entrepreneurial Orientation and Business Performance Relationship in SMEs in Kurunegala District, Sri Lanka

Article Details
Pub. Date : December, 2020
Product Name : The IUP Journal of Entrepreneurship Development
Product Type : Article
Product Code : IJED21220
Author Name : P Venkateswarlu, Deepal N Perera and Vivek Ranga
Availability : YES
Subject/Domain : Management Journals
Download Format : PDF Format
No. of Pages : 16



The purpose of this study is to investigate the moderating effect of Environmental Uncertainties (EU) on the relationship between risk-taking propensity and Business Performance (BP). The study was conducted on 275 Small and Medium Enterprises (SMEs) in Kurunegala district, Sri Lanka. Significant positive relationship was found between Entrepreneurial Orientation (EO) and BP. Regression analysis showed that the relationship between entrepreneurial dimensions and BP is not moderated by the EU. The EU was categorized into stable and dynamic environments. 173 SMEs were found to be in the dynamic environment where they are adaptable to changes in business environment and also technological changes.


In the era of globalization, with the advent of technology, competitive and explosive growth, the world has become a global village. Organizations and industries are facing challenges throughout the world to be part of the global economy. In order to survive, one has to keep pace with the swift advancements in technology; to lead is very hard on the one hand and at the same time, it opens up opportunities which were never explored. Entrepreneurship is one of the powerful factors for the economic development of the countries, which has become a symbol of business tenacity.

Entrepreneurship perhaps is one term that invariably features high when it comes to the socioeconomic agenda of any country. The whole idea of entrepreneurship is fundamentally driven by individual's business astuteness essentially coupled with risk-taking propensity.