Capabilities and Opportunities: Linking Knowledge Management Practices of Textile-Based SMEs on Sustainable Entrepreneurship and Organizational Performance in China

Abstract

Most researchers hold the role of dynamic capability (DC) as a key factor of achieving sustainable entrepreneurship performance (SEP) and Organizational Performance (OP) with the competitive advantage of knowledge management practices (KMPs). However, the effects of KMPs with SEP and OP are still under discussion. Moreover, the ambidexterity view, exploring the direct impact of KMPs mediated by dynamic capabilities (DC), gives evidence of sustainable entrepreneurship and organizational performance. Measuring the gathered data of 480 textile-based SME entrepreneurs and organizations through structural equation modeling, the study’s finding shows that KMPs positively and significantly influence sustainable entrepreneurship and organizational performance. Furthermore, this study explores the partial mediation of dynamic capabilities among KMPs with SEP and organization performance. At the same time, opportunity recognition is a moderator that strengthens the relationship between DCs with sustainable entrepreneurship and organizational performance. The study is limited to male textile-based SMEs and can be enhanced by female entrepreneurs. Furthermore, this research contributes to entrepreneurship students by encouraging better research work in current and existing studies, and practically assists government and private policymakers and business practitioners to formulate better strategies for the sustainability and economic growth of a country.