Abstract

firm performance. In recent times, especially with the growth of globalization and other such factors, the performance measurement standards and parameters have changed. This has also led to a significant change in the factors that are now used within the operational sphere of an organization in order to affect the firm performance. Approach: The literature review illustrates the relationship between EO and firm performance. Results: Firms with high levels of EO tend to enhance firms ’ abilities find new opportunities and increase their competitive advantage. Conclusion: Although research has shown a fairly consistent positive relationship between EO and firm performance, there has been limited research on the mechanisms that might moderate the influence of EO on firm performance.