Knowledge Management as a Pathway from Entrepreneurial Orientation to Enhanced Firm Performance

Abstract

This paper examines the influence of entrepreneurial orientation (EO) on firm performance (FP), and also explores the mediating relationship between knowledge management (KM). In particular, it focuses on the impact that KM has on the effects of the major EO dimensions (risk-taking, innovativeness, proactiveness) on the performance of the organization. Through a quantitative research method, the research uses SEM to test data from 160 Pakistani furniture manufacturing companies. The findings show that KM has a moderating influence on the relationship between innovativeness and performance of firms. In general, the review proves that all the investigated variables (risk-taking, innovativeness, proactiveness, and knowledge management) have a positive effect on performance. The research offers innovative findings on the impact of knowledge management on the performance implications of entrepreneurial orientation since it centers on a low-technology sector and uses complementary methods of analysis.

Keywords: Knowledge Management, Entrepreneurial Orientation, Firm Performance, Furniture, SEM.