ISSN: 2249-7196 IJMRR/Dec. 2016/ Volume 6/Issue 12/Article No-10/1716-1729 Maryam Imam Ibrahim et. al., / International Journal of Management Research & Review *Corresponding Author www.ijmrr.com 1716 MODERATING EFFECT OF GOVERNMENT SUPPORTS POLICY ON THE RELATIONSHIP BETWEEN ENTREPRENEURIAL ORIENTATION AND SMES PERFORMANCE IN NIGERIA: A FRAMEWORK Maryam Imam Ibrahim* 1 , Ooi Yeng Keat 1 , Shamsul Huda Binti Abdul-Rani 1 1 Universiti Utara Malaysia, Malaysia. ABSTRACT This study discusses a proposed framework for the moderating effect of government support policy on the relationship between Entrepreneurial Orientation (EO) and SMEs performance in Nigeria, the aim is to explore the extent to which government can influence the relationship. The majority of previous research conducted on SMEs performance focused on theadvanced economy and their findings may not be applicable in the context of an emerging economy like Nigeria. However, the few studies that were carried out in emerging economy did not give much emphasis on the role of government support policy as a moderating variable on the relationship between EO and SMEs performance. Additionally, much of the past studies on this constructs produced inconsistent results. In an attempt to bridge this paucity, this study proposed the moderating effect of government supportpolicy to determine its influence on the relationship between EO and SMEs performance. This study will add towards extending the borderline of existing knowledge in the areas of EO, SMEs, and government support policy,particularly from emerging economy. The policy implication of this study is to provide support for practitioners, especially, government agencies and decision-makers in the area of SMEs development in Nigeria. SME owner-managers will also find this work as a valuable reference point. Keywords: Entrepreneurial Orientation, SMEs, Government Support policy, Performance, Nigeria. 1. INTRODUCTION Small and medium enterprises have been recognised globally as an engine of growth and development (Eneh, 2010; Ogechukwu, 2011). Prior literature acknowledged that not the large firms that are fuelling leading economies around the world but small and medium firms. SMEs have gained increasing attention and have made a valuable contribution to a nation‟s economy, especially in the areas of employment opportunities, poverty reduction, income generation, providing support for large industries, innovation, promotion of entrepreneurship and rapid industrialisation(Fashoyin, 2012; Kale, 2012; NBS, 2012). In addition,SMEs are perceived to have provided important economic advantages specifically in the areas of regional income generation, savings, and raw material supply, enhance export earnings and boost capacity utilisation within the key industries and actualising women and youths potentials (SMEDAN, 2012). Above all, SMEs are contributing immensely in the areas of the business establishment and gross domestic product (GDP) transversely (Bouri et al., 2011).