Entrepreneurial orientation (EO) is critical for firms navigating dynamic environments, yet the mechanisms driving its development remain underexplored. This study examines the role of entrepreneurial alertness (EA) as a mediator linking environmental dynamism to EO and firm performance. We argue that while information acquisition reduces uncertainty, excessive focus on gathering information without adequate processing can lead to inefficiencies and missed opportunities. This imbalance may hinder the development of EO and adversely affect firm performance. Using data from 209 small and medium enterprises (SMEs) in Ghana, collected across multiple informants in two waves, our findings provide empirical support for the proposed model. The study contributes to the EO literature by demonstrating the relationship between information acquisition and processing in fostering EO and performance. It also cautions against the risks of overemphasising one dimension at the expense of the other in dynamic environments. Additionally, we extend the conceptualisation of EA by demonstrating that its dimensions operate through flexible, non-linear pathways, enabling entrepreneurs to adapt their information-processing strategies to the demands of dynamic environments.
