Knowledge Management Process, Entrepreneurial Orientation, and Performance in SMEs: Evidence from an Emerging Economy

Knowledge management (KM), a process of acquiring, converting, applying, and protecting knowledge assets, is crucial for value creation. The purpose of this research is to empirically test the relationship between KM processes (knowledge acquisition, knowledge conversion, knowledge application, and knowledge protection), entrepreneurial orientation (EO), and firm performance. Data were collected from 159 small- and medium-sized enterprises (SMEs) in Malaysia using a cross-sectional survey. This research uses partial least squares structural equation modeling (PLS-SEM) and WarpPLS version 7.0 to test the model. The results show that three of four KM dimensions: knowledge acquisition, knowledge conversion, and knowledge protection are positively related to performance. Moreover, EO has been found to moderate the relationship between knowledge application and performance positively.