Abstract
While theory suggests that management has discretion in manipulating resources in order to buildcompetitive advantage, resource-based research hasfocused on the characteristics of resources,paying less attention to the relationship between those resources and the way firms are organized.In explaining performance, entrepreneurship scholars have focused on a firm’s entrepreneurialstrategic orientation (EO), leaving its interrelationship with internal characteristics aside. Weargue that EO captures an important aspect of the way a firm is organized. Our findings suggestthat knowledge-based resources (applicable to discovery and exploitation of opportunities) arepositively related to firm performance and that EO enhances this relationship.