How entrepreneurial orientation influences innovation performance? The effect of knowledge coupling

Purpose Digital technologies have transformed business management practices and adapted them to shorter product lifecycles. As a result, firms are shifting their approach to building new competitive advantage from cost-oriented to entrepreneurial orientation (EO). This study aims to analyze the innovation performance (IP) in the context of EO from a knowledge management perspective. It constructs the functional path of the relationships among EO, knowledge coupling (KC) and IP of Chinese manufacturing firms to achieve business success. Design/methodology/approach Using data from 157 listed Chinese manufacturing firms from 2012 to 2021, the authors construct a panel data model to test the effect of EO on IP. This study classifies KC into existing knowledge coupling (EKC) and new and existing knowledge coupling (NKC) and analyzes their mediating effects in the above relationships. Findings This study finds that EO has an insignificant, inverted U-shaped relationship with IP. Both EKC and NKC have a significant, inverted U-shaped relationship with IP; in other words, if EKC and NKC increase, the IP of Chinese manufacturing firms first increases and then decreases, and EKC and NKC have a complete mediating effect on the relationship between EO and IP. Originality/value This study provides an in-depth analysis of IP from an EO perspective. The study’s findings enrich and extend the theoretical relationship between EO and IP. The authors also propose a knowledge management perspective for entrepreneurship research. These findings improve the current understanding of the role and function of KC in EO.