Developing entrepreneurial orientation: the role of dynamic capabilities and intangible resources

Abstract

This paper adds to the debate on entrepreneurial orientation and dynamic capabilities. We build upon the resource-based view analyzing firm resources crucial for taking the firm towards new competitive business platforms. We imply that the assets of tangible and intangible resources work together with dynamic capabilities to stimulate entrepreneurial strategies within the firm. Particularly we focus upon the role of intangible resources and dynamic capabilities in developing entrepreneurial orientation. Specifically, we suggest that dynamic capabilities mediate the relationship between intangible resources and entrepreneurial orientation. Data from a sample of 651 Norwegian firms engaged in R&D activities was utilized to empirically test the hypotheses. The findings indicate that dynamic capabilities related to opportunity search and readjustment ability are related to entrepreneurial orientation. Further, these dynamic capabilities mediate the relationship between relation-based resources and entrepreneurial orientation, while knowledge-based resources were found to be directly associated with entrepreneurial orientation.