Entrepreneurial orientation and innovation performance: do breadth and depth of external knowledge search matter?

Abstract This study explores how a firm’s entrepreneurial orientation (EO) influences innovation performance. Specifically, by extending theoretical connections among EO, external knowledge search, and the attention-based view framework, it examines how the breadth and depth of external knowledge search moderate the U-shaped effect of EO on innovation performance. By analyzing unique firm-level data on EO and innovation from Korean manufacturing industries, it finds that the breadth of external knowledge search weakens the U-shaped effect of EO, but the depth of external knowledge search strengthens its effect. This work sheds light on the combination of EO and search strategies (breadth and depth) required to enhance innovation performance, while addressing constraints of managerial attention for internal EO implementation and external knowledge search.