The mediating role of knowledge exploration and exploitation for the development of an entrepreneurial university

Purpose: The modern knowledge-based economy acknowledges the role of the third mission of universities related to the process of knowledge transfer as a driving force to face sustainability issues, in addition to the two traditional missions focusing on research and teaching. The purpose of this paper is to investigate the relationships between internal environment, external environment, knowledge exploitation, knowledge exploration and university performance. Design/methodology/approach: This study applies confirmatory factor analysis and structural equation modelling to test the conceptual model in the Chinese education system. Findings: The findings confirm the higher impact of internal environment on both knowledge exploitation and knowledge exploration as compared to external environment. Knowledge exploitation is more strongly related to university performance than knowledge exploration. These results highlight the imperative role of internal university stakeholders in fostering knowledge management strategies. In addition, they encourage academicians, practitioners and policy makers to focus their attention on the impact of knowledge management models, tools and practices in universities to achieve the entrepreneurial development which, in turn, has a positive impact on individual graduates and innovation ecosystems. Originality/value: The necessity to develop a more entrepreneurial university, as well as the lack of evidence of their development in emerging countries, highlights the need to investigate how specific factors and knowledge management processes are impacting the universities’ performance. In fact, although previous studies provide an explanation of the impact of internal and external factors on a university’s performance, contributions integrating these concepts with strategic knowledge management processes are still lacking.