This study aims to examine the interactive effect between strategic flexibility and entrepreneurial\r\norientation on firm performance under fierce competition environment. Data from Chinese small and\r\nmedium-sized business (SMB) in high-technology industries demonstrate that entrepreneurial\r\norientation and strategic flexibility interact to influence firm performance in such a way that strategic\r\nflexibility enhances the positive relationship between entrepreneurial orientation and firm performance.\r\nWe also observed the difference between Chinese and Western SMBs which showed on the relationship\r\nbetween strategic flexibility and firm performance. Theoretical and managerial implications of the\r\nfindings are discussed.
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