How knowledge-based dynamic capabilities relate to firm performance: the mediating role of entrepreneurial orientation

Abstract To examine how knowledge-based dynamic capabilities relate to firm performance through the mediating role of entrepreneurial orientation, we analyzed data a sample 1047 Portuguese and Spanish small medium-sized enterprises (SMEs) all industry sectors. The results reveal that are associated with relationship is partially mediated by firm’s orientation. This mediation could be explained fact an orientation identify utilize new opportunities integral knowledge value creation extraction, avoid pervasive rigidities. Our study sheds light on mechanisms which helps explain differences among firms. In addition, provide management insight firms can deploy their extract from them face change promote performance.