Knowledge-based resources, entrepreneurial orientation, and the performance of small and medium-sized businesses

• Published in: Strategic management journal Vol. 24; no. 13; pp. 1307 - 1314
• Main Authors: Wiklund, Johan, Shepherd, DEAN
• Format: Journal Article
• Language: English
• Published: Chichester, UK John Wiley & Sons, Ltd 01-12-2003; John Wiley and Sons; Wiley; Wiley Periodicals Inc
• Subjects: Applied sciences; Business innovation; Business management; Business structures; Competition; Competitive advantage; Corporate strategies; discovery; Economic performance; Economic resources; Educational administration; entrepreneurial orientation; Entrepreneurs; Entrepreneurship; Exact sciences and technology; Exploitation; Firm modelling; Knowledge; Knowledge management; Natural resource management; Operational research and scientific management; Operational research. Management science; Performance enhancing substances; Product development; Research Notes and Commentaries; Resource allocation; Resource management; resources; Small and medium sized enterprises; Small business; Studies; Technological innovation; exploitation; resources; discovery; entrepreneurial orientation; knowledge
• ISSN: 0143-2095; 1097-0266; 1097-0266
• DOI: 10.1002/smj.360

While theory suggests that management has discretion in manipulating resources in order to build competitive advantage, resource-based research has focused on the characteristics of resources, paying less attention to the relationship between those resources and the way firms are organized. In explaining performance, entrepreneurship scholars have focused on a firm's entrepreneurial strategic orientation (EO), leaving its interrelationship with internal characteristics aside. We argue that EO captures an important aspect of the way a firm is organized. Our findings suggest that knowledge-based resources (applicable to discovery and exploitation of opportunities) are positively related to firm performance and that EO enhances this relationship.