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How knowledge-based dynamic capabilities relate to firm performance: the mediating role of entrepreneurial orientation

Author

Listed:
  • Remedios Hernández-Linares

    (Universidad de Extremadura)

  • María Concepción López-Fernández

    (Universidad de Cantabria)

  • Gema García-Piqueres

    (Universidad de Cantabria)

  • Miguel Pina e Cunha

    (Universidade Nova de Lisboa)

  • Arménio Rego

    (Universidade Católica Portuguesa, Católica Porto Business School
    Instituto Universitário de Lisboa (ISCTE-IUL))

Abstract

To examine how knowledge-based dynamic capabilities relate to firm performance through the mediating role of entrepreneurial orientation, we analyzed data of a sample of 1047 Portuguese and Spanish small and medium-sized enterprises (SMEs) of all industry sectors. The results reveal that knowledge-based dynamic capabilities are associated with firm performance and that the relationship is partially mediated by a firm’s entrepreneurial orientation. This mediation could be explained by the fact that an entrepreneurial orientation to identify and utilize new opportunities is integral to knowledge value creation and extraction, and to avoid pervasive rigidities. Our study sheds light on the mechanisms through which knowledge-based dynamic capabilities are associated with firm performance and helps to explain performance differences among firms. In addition, we provide management insight on how firms can deploy their knowledge-based dynamic capabilities and extract value from them to face change and promote their entrepreneurial orientation and performance.

Suggested Citation

  • Remedios Hernández-Linares & María Concepción López-Fernández & Gema García-Piqueres & Miguel Pina e Cunha & Arménio Rego, 2024. "How knowledge-based dynamic capabilities relate to firm performance: the mediating role of entrepreneurial orientation," Review of Managerial Science, Springer, vol. 18(10), pages 2781-2813, October.
    • Handle: RePEc:spr:rvmgts:v:18:y:2024:i:10:d:10.1007_s11846-023-00691-4
    DOI: 10.1007/s11846-023-00691-4
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    More about this item

    Keywords

    Knowledge-based dynamic capabilities; Entrepreneurial orientation; Performance; SMEs;
    All these keywords.

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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