How Entrepreneurial Orientation Moderates the Effects of Knowledge Management on Innovation

Drawing on the complementary asset theory, this paper develops a conceptual model to explain the relationships among intrafirm knowledge sharing, knowledge application, and innovation as well as the moderating effect of entrepreneurial orientation (EO) on the intrafirm knowledge sharing and knowledge application. Using a sample of 607 Chinese firms, this paper empirically examines this model. The results show that, under China's transition economy, the positive relationship between intrafirm knowledge Sharing and a firm's innovation is mediated by knowledge application. Furthermore, intrafirm knowledge sharing facilitates knowledge application, and EO positively moderates this relationship. Copyright (C) 2009 John Wiley & Sons, Ltd.