Organizational Social Capital, Formalization, and Internal Knowledge Sharing in Entrepreneurial Orientation Formation

Abstract

This study considers the mediating role of internal knowledge sharing in the relationship between two critical aspects of organizational social capital (trust and goal congruence) and entrepreneurial orientation (EO), as well as how this role might be moderated by the firm's level of formalization. It shows that higher levels of internal knowledge sharing relate to stronger EO, and such knowledge sharing in turn results from higher levels of trust and goal congruence. This study further provides a nuanced picture of the role of formalization in this process. The authors discuss both the study's implications and future research directions.