The Impact of Entrepreneurial Orientation on Firm Performance: The Multiple Mediating Roles of Competitive Strategy and Knowledge Creation Process

Abstract

The strategy and knowledge creation process help entrepreneurial SME managers achieve sustainable competitive advantage and firm performance. This study aims to investigate the multiple mediating roles of competitive strategies and knowledge creation processes implemented by Chinese SMEs in Thailand between their entrepreneurial orientation and firm performance. Structural equation model is used to analyze data collected from Chinese SMEs in Thailand. Results showed that (1) there is a positive relationship between perceptions of entrepreneurial orientation and perceptions of firm performance, (2) competitive strategy and knowledge creation process individually play a mediating role between entrepreneurial orientation and firm performance, and (3) competitive strategy and knowledge creation process play a chain mediating effect between entrepreneurial orientation and firm performance. This hypothesis is verified by a chained multiple mediation model, and this model has theoretical significance for understanding the relationship between perceived entrepreneurial orientation and firm performance. The competitive strategy has positive effects on SME performance and knowledge creation expands the firm’s valuable resources and actively updates firm performance.