Entrepreneurial orientation and technological innovation performance: The mediating role of knowledge transfer in Chinese SMEs

Small and medium-sized enterprises (SMEs) form the backbone of China's economy, yet their technological innovation performance faces constraints from resource limitations and fragmented knowledge flows despite rapid economic growth. Drawing on the resource-based view and knowledge-based view, this study investigates the relationship between entrepreneurial orientation (EO) and technological innovation performance (TIP), with knowledge transfer (KT) acting as a mediator. Using survey data collected from 378 manufacturing and IT SMEs across the Yangtze River Delta, Pearl River Delta, and Bohai Economic Rim between 2022 and 2024, structural equation modeling results reveal that EO exerts a significant positive direct effect on TIP. Knowledge transfer partially mediates this relationship, demonstrating how innovativeness, proactiveness, and risk-taking translate into superior innovation outcomes through enhanced external knowledge acquisition and internal dissemination. The findings underscore the pivotal role of knowledge flows in emerging high-tech contexts. Theoretical and practical implications for SME managers, policymakers, and technology-transfer institutions in China are discussed. This research contributes to the literature on technological innovation and entrepreneurship in developing-country contexts by delivering robust empirical evidence among Chinese SMEs, a major component of China's innovation-oriented economy.