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

Authors

  • Johan Wiklund,

    Corresponding author
    1. Center for Entrepreneurship and Business Creation, Stockholm School of Economics, Stockholm, Sweden and Jönköping International Business School, Jönköping, Sweden
    • Center for Entrepreneurship and Business Creation, Stockholm School of Economics, PO Box 6501, SE 113-83 Stockholm, Sweden.
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  • DEAN Shepherd

    1. Leeds School of Business, University of Colorado, Boulder, Colorado, U.S.A. and Jönköping International Business School, Jönköping, Sweden
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Abstract

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. Copyright © 2003 John Wiley & Sons, Ltd.

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