Entrepreneurial and Knowledge-Based Performance of SMEs: A Cross Country Mixed Methods Study

Abstract

While taking the knowledge-based view of the firm (KBV) as the theoretical background, this study examines the way two intellectual capital dimensions (entrepreneurial capital and external relational capital) interact with two knowledge management processes, namely knowledge sharing and absorptive capacity, leading to organizational performance. With the purpose of enriching the robustness of conclusions and contributions, we applied a mixed methods approach by using sequentially a quantitative method (PLS-SEM) and a qualitative method (fsQCA). Additionally we used data from SMEs in two different countries, an emergent country and a Western Europe country, Brazil and Portugal, respectively. The study uses a sample of 314 SMEs. The results show that both dimensions of intellectual capital are interrelated with knowledge sharing and absorptive capacity. Furthermore, there is evidence of a positive relationship between knowledge sharing and absorptive capacity. Coherent results between the qualitative and quantitative approaches identify entrepreneurial posture and absorptive capacity as antecedents of organizational performance. Despite the environmental differences between the SMEs of each country, there are similar results regarding the net effects and main determinants of organizational performance. Such findings suggest a uniform phenomenon across the two countries.