The Theory and Practice of Entrepreneurship
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The Theory and Practice of Entrepreneurship

Frontiers in European Entrepreneurship Research

Edited by David Smallbone, João Leitão, Mário Raposo and Friederike Welter

This timely book provides a fresh perspective on contemporary research in the field of entrepreneurship and small business, considering both theory and application.
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Chapter 10: Knowledge and Organizational Entrepreneurship: A Relational Perspective

Ana Maria Bojica, María del Mar Fuentes Fuentes and Matilde Ruiz Arroyo

Extract

10. Knowledge and organizational entrepreneurship: a relational perspective Ana Maria Bojica, María del Mar Fuentes Fuentes and Matilde Ruiz Arroyo INTRODUCTION The entrepreneurship literature has demonstrated the positive influence of organizational entrepreneurship on firm performance (Bhardwaj et al. 2006; Dess et al. 2003). Various studies have shown that organizational entrepreneurship has a positive relationship with firms’ financial performance, a relationship that tends to become stronger over time and in dynamic, complex and competitive environments (Kuratko et al. 2001; Zahra 1991; Zahra and Covin 1995; Zahra et al. 2000). While the importance of entrepreneurship for firm performance has been outlined, most studies have focused on the contingences of the relationship between entrepreneurial orientation and performance or corporate entrepreneurship and performance, neglecting the direct influence of other organizational and environmental factors on the level of entrepreneurship in a firm. In this respect, some studies, primarily qualitative ones, have shown that prior knowledge is a condition sine qua non for the identification and exploitation of new entrepreneurial opportunities (Shane 2000; Shepherd and DeTienne 2005), emphasizing that organizational knowledge is a critical factor in the entrepreneurial process. The research on the relationship between knowledge as a resource and entrepreneurship at the firm level has centred mainly on analysing the role that the knowledge base plays in the entrepreneurial process. Yet authors like Dyer and Singh (1998) and Ahuja (2000) stress that in dynamic environments very few firms have the luxury of developing new products/ services and processes solely through their internal knowledge base....

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