Even though entrepreneurial firms make substantial contributions to both domestic and global economies and innovations, there is disagreement in the literature regarding how open innovation affects these firms' ability to succeed. The current research is an attempt to address the gaps by analyzing the intricacies and dynamics of entrepreneurial firms’ involvement in Open Innovation. Furthermore, the impact on performance is examined from a knowledge perspective. In Jordanian context, this study analyzed the link between stakeholder interactions, knowledge management, open innovation, and the performance of entrepreneurial firms. The findings demonstrated that open innovation activities are statistically significant to the overall performance of entrepreneurial firms. However, since it has an unintentional detrimental effect over the performance of entrepreneurial firms in Jordan, the moderating effect of stakeholder relations and the mediation effect of knowledge management has been analyzed. The moderating role of stakeholder relationships has been proven statistically which enriched the theoretical foundations of RBV and contingency theory by adding stakeholders’ theory into the combination of the two theories, at the end limitations and guidelines for future research along with practical implications are emphasized.

This paper identifies the mediating role of innovation and moderating role of size of enterprise on the relationship between entrepreneurial orientation and performance of Micro and Small Enterprises (MSEs). For the purpose of this study, the necessary data is collected from 384 MSE's operating in Punjab province, Pakistan. Initially the data are analyzed using SPSS 22 and then, for the development of structure equation modeling, Smart PLS-3 is used. Two aspects of entrepreneurial orientations; namely risk taking and pro-activeness are analyzed and innovation is considered as mediat-ing variable. The major contribution of the study is to identify any moderating effect of size of the enterprise on the relationship between entrepreneurial orientation, innovation and performance of MSEs. These elements basically show the contribution that is made by the innovation and performance of the MSE's. The results reveal that the size of enterprises moderated the relationship between risk taking and performance, pro-activeness and performance as well as innovation and performance.