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Extant research has shown that entrepreneurial orientation (EO) is positively associated with firm performance, but several contingencies affect the strength of this relationship. This article uses insights from the resource-based view and upper echelons perspective to introduce top management’s transformational leadership behaviors as moderators in the EO–performance relationship. The theoretically derived model is tested using survey data obtained from 790 small-and medium-sized firms in six countries. Findings indicate that, regardless of national setting, four transformational behaviors—articulating a vision, providing an appropriate model, having high performance expectations, and showing supportive leader behavior—positively affect the relationship between EO and firm performance. Further, the performance consequences of EO are greater when top management adheres to a configuration characterized by the highest possible levels of transformational behaviors. Implications and directions for future research are discussed.

The relationship between entrepreneurial orientation (EO) and firm performance is among the best-researched topics in entrepreneurship research. These studies have been conducted in various national contexts. While a first meta-analysis by Rauch et al. finds no significant difference between EO's effects based on the continent in which the firm is based, the present study considers how national cultural and macroeconomic drivers impact the EO-performance relationship. Building upon 177 studies with data from 41 countries, the meta-analysis consolidates this literature stream, contributing to the evidence-based entrepreneurship research.Entrepreneurial orientation (EO), typically encompassing an innovativeness, proactiveness, and risk-taking dimension, was introduced three decades ago to measure the degree of entrepreneurial behavior in strategy making (Miller, 1983). Since then, a significant number of empirical studies have examined the EO-performance relationship. While most studies find a positive performance relationship, the strength of this relationship varies significantly across various studies and contexts (Wales, Gupta, & Moussa, 2013). Based on these studies, Rauch, Wiklund, Lumpkin, and Frese (2009) conducted the first meta-analysis on the EO-performance relationship (k = 51; N = 14,259; r c = .242 ) and found that firm size and industry adherence were major moderators of the EOperformance relationship. However, considerable variance across studies remained in their meta-analysis, so further examination of the possible determinants of the EO-performance relationship is warranted.