Entrepreneurial Orientation and Knowledge-Driven Innovation

The expansion of the knowledge-based economy has driven rapid growth in the literature on knowledge management (KM) and intellectual capital (IC), covering topics such as learning, business, and innovation. Scholars recognize knowledge as a significant resource that can foster innovation to attain a competitive advantage. However, literature on the role of entrepreneurial orientation (EO) and learning orientation (LO) in enhancing the impact of both KM and IC on innovation is still limited and fragmented. Hence, a theoretical gap in understanding this role limits both theoretical advancement and practical application. Addressing this problem is essential to developing a comprehensive model of how organizations transform knowledge into innovation and ultimately competitive advantage. The study provides empirical evidence on these relationships through a quantitative approach, utilizing a cross-sectional survey. The sample comprised employees working in the private sector, N = 97. The analysis employed Partial Least Squares Structural Equation Modelling (PLS-SEM) with SmartPLS to test the hypothesized relations, and IBM SPSS Statistics to conduct descriptive analyses. The findings affirm that EO is a key driver of innovation, emphasizing its central role in channeling knowledge into innovation.