This study examines the relationships among entrepreneurial orientation, knowledge creation process, and
firm performance using survey data from 165 entrepreneurs. We use LISREL analysis to test the direct and
indirect effects of the entrepreneurial orientation on firm performance. Knowledge creation process – ope-rationalized to reflect the dimensions of socialization, externalization, combination, and internalization is used as the mediating variable for explaining the relationship between entrepreneurial orientation and firm
performance. The results indicate that the significance of the direct effect of entrepreneurial orientation on
firm performance is reduced when the indirect effect of entrepreneurial orientation through knowledge
creation process is included in a total effect model. Consequently, entrepreneurial orientation is positively
related to firm performance, and knowledge creation process plays a mediating role in this relationship.