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The primary purpose of this article is to clarify the nature of Corporate Entrepreneurship with investigating the relationship of environmental and organizational factors with Corporate Entrepreneurship and Firm Performance. This study contributes to a better understanding of the relationship between corporate entrepreneurship and performance by developing and testing a normative model, which clarifies the nature of the influences of corporate entrepreneurship and its environmental and organizational antecedents on organizational performance. The finding of structural equation model modeling ,based on survey data form 280 Small and medium enterprise in Iran demonstrate that environment as well as organization condition and corporate entrepreneurship and some its contingency make a different in Corporate entrepreneurship and organization performance . Therefore, the model offered in this research, upon being tested with the, showed a positive effect in the correlation between organizational, environmental factors and corporate entrepreneurship. Further, organizational performance was a compatible factor contributing to the improved status of active small and medium size enterprises.
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