Hughes et al 2021 SEJ - KBT, EO, Stakeholder Eng and Perf w online appendix - ACCEPTED.pdf (864.03 kB)
Knowledge‐based theory, entrepreneurial orientation, stakeholder engagement, and firm performance
journal contribution
posted on 2021-08-16, 09:47 authored by Mathew Hughes, Paul Hughes, Ian HodgkinsonIan Hodgkinson, Yi‐Ying Chang, Che‐Yuan ChangResearch summary:
Our understanding of entrepreneurial orientation (EO) is limited by the inattention to why a firm arranges itself to give rise to EO, what sets its strategic intent, and what affects its contribution to performance. These omissions have led to calls for a causally adjacent theory of EO. Grounded in knowledge-based theory, we investigated (a) how knowledge production gives rise to EO, (b) how the relationship between EO and profitability is mediated by knowledge use, and (c) how this relationship between EO and knowledge use is moderated by stakeholder engagement. Using multi-respondent, multi-source data from small-and-mid-size enterprises in two economically distinct East Asian countries, Taiwan and Japan, empirical evidence supports our theory. Our findings are consistent across both studies. We contribute a knowledge-based theory of EO.
Managerial summary:
Why do some firms organize to be entrepreneurial while others do not, and why do some entrepreneurially oriented firms profit more financially than others? We find that those firms that organize processes to accumulate, aggregate, activate, store, manage, and distribute knowledge become more entrepreneurial oriented as the means to create wealth from this ‘knowledge production’. In other words, knowledge production can affect perceptions of opportunities and resources, leading to choices about organizational arrangements to best use knowledge. However, we find that the firm also needs to be adept at knowledge use to profit financially from its entrepreneurial endeavors, and leading firms utilize stakeholder engagement to strengthen the relationship between entrepreneurial behavior and knowledge use on the route to greater profitability.
Our understanding of entrepreneurial orientation (EO) is limited by the inattention to why a firm arranges itself to give rise to EO, what sets its strategic intent, and what affects its contribution to performance. These omissions have led to calls for a causally adjacent theory of EO. Grounded in knowledge-based theory, we investigated (a) how knowledge production gives rise to EO, (b) how the relationship between EO and profitability is mediated by knowledge use, and (c) how this relationship between EO and knowledge use is moderated by stakeholder engagement. Using multi-respondent, multi-source data from small-and-mid-size enterprises in two economically distinct East Asian countries, Taiwan and Japan, empirical evidence supports our theory. Our findings are consistent across both studies. We contribute a knowledge-based theory of EO.
Managerial summary:
Why do some firms organize to be entrepreneurial while others do not, and why do some entrepreneurially oriented firms profit more financially than others? We find that those firms that organize processes to accumulate, aggregate, activate, store, manage, and distribute knowledge become more entrepreneurial oriented as the means to create wealth from this ‘knowledge production’. In other words, knowledge production can affect perceptions of opportunities and resources, leading to choices about organizational arrangements to best use knowledge. However, we find that the firm also needs to be adept at knowledge use to profit financially from its entrepreneurial endeavors, and leading firms utilize stakeholder engagement to strengthen the relationship between entrepreneurial behavior and knowledge use on the route to greater profitability.
History
School
- Business and Economics
Department
- Business
Published in
Strategic Entrepreneurship JournalVolume
16Issue
3Pages
633-665Publisher
WileyVersion
- AM (Accepted Manuscript)
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© Strategic Management SocietyPublisher statement
This is the peer reviewed version of the following article: Hughes, M., Hughes, P., Hodgkinson, I., Chang, Y.-Y., & Chang, C.-Y. (2022). Knowledge-based theory, entrepreneurial orientation, stakeholder engagement, and firm performance. Strategic Entrepreneurship Journal, 16(3), 633–665, which has been published in final form at https://doi.org/10.1002/sej.1409. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley’s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibited.Acceptance date
2021-08-11Publication date
2021-09-02Copyright date
2021ISSN
1932-4391eISSN
1932-443XPublisher version
Language
- en
Depositor
Prof Mat Hughes. Deposit date: 15 August 2021Usage metrics
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