The impact of entrepreneurial orientation, network capability and knowledge management practices on firm performance: the perspective of strategic alliance

Abstract

This study investigates how entrepreneurial orientation, knowledge management practices, and network capabilities affect SME performance, with a particular focus on the mediating role of strategic alliances, including alliance innovation, alliance success, and alliance performance. Prior research has established the positive effects of entrepreneurial orientation, knowledge management, and network capabilities on firm performance. However, the synergistic interactions among these capabilities and their combined effect remain underexplored. Furthermore, current research has predominantly examined the direct effects of strategic alliances on firm performance, rather than exploring their mediating role. This research addresses existing gaps by integrating these elements into a unified theoretical framework to analyse their collective impact on SME performance. The research utilises a systematic five-step quantitative methodology, informed by a positivist framework and deductive logic. Data were gathered from 490 SMEs in China's high-tech sector via structured questionnaire surveys and analysed using Structural Equation Modelling (SEM). This included reliability testing, confirmatory factor analysis (CFA), regression analyses, and bootstrapping techniques to validate mediating effects. The results demonstrate that entrepreneurial orientation, knowledge management practices, and network capabilities significantly improve firm performance, both independently and in combination. Furthermore, strategic alliances facilitate this relationship, suggesting that SMEs can successfully utilise external collaborations to convert internal capabilities into measurable performance enhancements. This study enhances existing literature by elucidating the synergistic effects of these capabilities and emphasising the role of strategic alliances as essential mediators. This study offers strategic guidance for China SMEs in high-tech sectors, highlighting the role of strategic alliances in transforming entrepreneurial orientation, network capabilities, and knowledge management into enhanced firm performance.

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Identifiers

ORCID for Zhebing Zhou: orcid.org/0009-0006-3042-5749

ORCID for Hang Do: orcid.org/0000-0001-8560-8119

ORCID for Yang Liu: orcid.org/0000-0002-9540-9719

ORCID for Jagannadha Tamvada: orcid.org/0000-0002-1225-3174

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