A mediating role of innovation capability between entrepreneurial competencies and competitive advantage

This study investigates how entrepreneurial competencies at the individual level and firm performance at the organisational level are mediated by organisational innovation capabilities. Prior studies show mixed results for the relationship between entrepreneurial competencies and firm performance, perhaps because of the omission of potentially mediating variables. The results show that the indirect effects of entrepreneurial competencies through organisational innovation capabilities are much stronger than their direct effects on competitive advantage. Organizational innovation capabilities are required for the sustainability of a firm's superior position, mediating the relationship between entrepreneurial competencies and competitive advantage.