Exploring the Impact of Entrepreneurs’ Personality on Innovation Performance: Role of Knowledge Creation Ability and Career Growth Opportunity in SMEs

This study delves into the under-researched connection between entrepreneurs’ personality traits, their knowledge creation ability, and ultimately, their innovation performance in SMEs of Pakistan. We explore a model where openness to experience and conscientiousness directly influence knowledge creation ability and act as a mediator between personality traits and innovation performance. In addition, career growth opportunities are proposed to moderate these relationships, potentially amplifying the positive effects. This study involved 307 entrepreneurs’ from newly established Pakistani manufacturing and service sector. Data collection occurred across two time points, two months apart, using a 5-point Likert scale questionnaire. Our findings strongly support the proposed model. Both openness and conscientiousness significantly affect innovation performance and knowledge creation ability, which in turn, mediates the relationship between entrepreneurs’ personality traits and their innovation’ performance. Moreover, career growth opportunities strengthen the connections between personality traits, knowledge creation, and innovation performance. This study makes valuable contributions in three ways. First, this study sheds light on the intricate interplay between personality, knowledge creation, and entrepreneurs’ innovation performance within the specific context of Pakistani SMEs. Second, this study offers significant theoretical advancements by demonstrating the mediating role of knowledge creation and the moderating role of career growth opportunities. Finally, this study provides practical implications for both entrepreneurs’ and policymakers, emphasizing the importance of nurturing specific personality traits, fostering knowledge creation abilities, and promoting career growth opportunities to propel innovation.