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Knowledge based entrepreneurship: the role of networks

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 KNOWLEDGE-BASED
ENTREPRENEURSHIP: THE ROLE
OF NETWORKS
Khadija Hamdani and Salah Koubaa
GECIAS Research Laboratory, Faculty of Law, Economic
and Social Sciences Aïn Chock, Hassan II University
of Casablanca, Morocco

Abstract
Knowledge-based entrepreneurship is an effective mechanism to
transform knowledge into innovation. Characterized by an intense
use of knowledge and innovative activity, new knowledge generated
by many sources, is crucial to develop new ideas. In the same
context, this paper examines empirically the role of networks, one
of the channels by which knowledge flow between units, focusing
on two key features: knowledge and opportunity, and explores how
networks support knowledge-based firms. The evidence of this
research points towards the role of networks within knowledge and
opportunity and deduce that networks put closer the opportunity to
entrepreneurs by influencing their perception and decision-making,
provide information, assets and ideas.

Keywords
Knowledge-based entrepreneurship, Knowledge, Networks, Opportunity

1. Purpose
Regarding entrepreneurship which is a dynamic process that fund
ventures based on opportunities and use knowledge as a fundamental
source, the process to identify an opportunity is carried out within
many external factors that transfer knowledge to entrepreneurs
whom recognize opportunities. In fact, knowledge is a key element
to attend innovation and economic performance, that’s why it’s
Advances in Business important to invest on knowledge by producing, distributing and
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 Knowledge-based Entrepreneurship: The Role of Networks
use it for economic purposes, which can only happen through the
entrepreneurship mechanism.
As the Knowledge Spillover Theory of Entrepreneurship posit,
entrepreneurship is the only process by which knowledge is employed
for economic purposes, this theory brings a step closer to understand
the essential role of the entrepreneur in the market economy (Acs
et  al., 2009) which refers to knowledge-based entrepreneurship
(KBE), “a phenomenon driven mainly by the climes of information-
knowledge philosophy which is characterized by high value innovation
and creativity, deploying technology, information and communication
technology epistemologies for product and services giving commercial
or market value” (Akuhwa et al., 2015).
KBE allude to the transmission of knowledge that has been generated
within the fields of science and technology in anticipation of commercial
application (Bishop, 2006). Indeed, KBE confronts the peculiarities of
scientific knowledge that is epitomized by tacit and encoded knowledge
and scientifically trained labour is required to transfer both forms of
knowledge (Witt and Zellner, 2005).
The starting conditions for any given company will differ from
venture to another depending on the context surrounding the event
of actually founding the firm (Johansson, 2005). However, surviving
from only internal resources is not enough and external resources are
also important, especially for small and innovative firms it’s necessary
to maintain relationships with other agents to have access to useful
information. The flow of knowledge through networks called knowledge
spillovers is a process that provide technological information,
competitor information, market trends, operating or management
procedures (Gilbert and Kusar, 2006), it occurred through a variety
of mechanisms such as communities of sharing that are a trigger of
new knowledge. It is well known that networks are a crucial asset
to entrepreneurship, as it helps to provide knowledge and resources
important to ventures. Moreover, a firm’s external network contributes
to performance, by allowing the firm to discover opportunities, test
new ideas and form new activities (Bishop, 2006).
Generally, networks act as a support vehicle since they help to adapt
strategic choices to market needs, provides resources, information,
potential customers and many other entrepreneurial services. The
contribution of networks is called into question specifically on
supporting KBF because of their smallness, face constraints in their Advances in Business
early stage of development. That’s what makes the subject of the Management:
A contemporary
present work which brings the focus on the role of networks among perspective

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Khadija Hamdani and Salah Koubaa
KBE and aim to empirically answer to the following research question:
‘How networks encourage and support KBE?’
In accordance, the present work is structured as follow: the first
part shall to present literature about the knowledge spillover theory
of entrepreneurship, then a brief overview of the role of networkson
knowledge-spillover process, presenting KBE concept and the
implications of networks for KBE. The second part set the selected
methodological choices and case studies. Finally, a presentation and
discussion of results focusing on three concepts: networks, opportunity
and knowledge, are drawn in the last part.

2.  Literature review

2.1  Knowledge spillover theory of entrepreneurship

Knowledge spillovers are “unintentional flows of knowledge from
one network party to another” (Ko and Liu, 2015). It’s a rise of
information that can be transferred randomly between two units
directly or indirectly (Gilbert et al., 2008). This process is much more
involved by firms that create new activities, namely, innovative firms
(Gilbert and Kuser, 2006), it’s best transmitted by repeated contact,
observation, communication and face-to-face interaction (Audretsch
and Feldman, 2003) which help to reduce the uncertainty of introducing
new innovative activities and aligning strategic choices to market
demand (Gilbert et al., 2008) by providing information and trends to
receiving firms (Brown and Diguid, 2000). This approach is evolved
among bounded regions and influenced by the local characteristics of
the region (Gilbert and Kuser, 2006 Agarwal et al., 2010) which is
an important asset to entrepreneurship due to its role in product and
process innovation (Agarwal et al., 2010 Lee et al., 2016).
However, knowledge spillovers have an uncertain economic value, it
requires investments on risky activities which call into attention the
fact that risk aversion is asymmetric across agents simply because new
opportunities means new risks. This refers to the role of entrepreneurs
in serving to lead knowledge spillovers as they are known for their
low risk aversion (Audretsch and Keilbach, 2008). This link, between
knowledge spillovers and entrepreneurship, is presumedon “Knowledge
spillover theory of entrepreneurship – KSTE”.

Advances in Business
KSTE argues that investments in knowledge will generate entrepreneurial
Management: opportunities (Audretsch et al., 2010) as knowledge is considered as the
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only source of entrepreneurial opportunities (Audretsch and Keilbach,

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 Knowledge-based Entrepreneurship: The Role of Networks
2007). This theory refers to an incomplete commercialized knowledge
that have an uncertain propensity, developed by incumbent firms and
research organizations that can serve to firm’s creation (Audretsch and
Keilbach, 2007); (Audretsch et al., 2010).
KSTE is about opportunities generated within knowledge-spillover
process meant to be exploited by entrepreneurs who are able to
discover opportunities beneficial for regions performance (Audretsch
and Lehmann, 2005). This is an important framework for innovation
and performance that ensure economic dynamism. This theory holds
geographic aspects, knowledge flow among companies within delimited
regions involving clustering among firms in similar industries and
promotes “entrepreneurship support networks” that carry knowledge
flow (Hayter, 2013).
The extant literature present some inferred conclusions about the
KSTE and report different measures considered by this theory: first;
knowledge is a source of innovation, productivity and economic
growth, second; all knowledge is important and useful whatever
its type, third; the knowledge spills over automatically to other
organization within relationships networks contacts, fourth; the process
of knowledge flow is increased in geographically bounded regions
due to proximity and repeated exchanges, at last, knowledge spillover
networks that may hold strong or weak ties, where knowledge differs
depending on nature and the assigned values. Finally, an uncertain and
unexploited knowledge is a source of entrepreneurial opportunities,
where a knowledge-spillover process is evoked due to mobility labour,
interactions, exchanges, communication and networks (Audretsch
and Lehmann, 2005; Audretsch and Keilbach, 2007; Audretsch et al,
2010; Hayter, 2013).

2.2 Entrepreneurship networks as a channel of knowledge

spillover
Networks aid entrepreneurs to obtain information and resources, they
are considered as carriers of knowledge and opportunities that help on
firm’s establishment. Once entrepreneurs are involved on a community
of different agents, they become more potent to information and
resources. Networks present an indispensable factor to entrepreneurial
activities as they provide access to necessary resources and information
(Hayter, 2013).
Earlier theoretical contributions argue that knowledge is transferred Advances in Business
Management:
through informal contacts. Across firms, colleagues provide each A contemporary
other with advices and solutions which link firms in a cultural perspective

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Khadija Hamdani and Salah Koubaa
environment due to informal contacts in a mix of cooperation and
competition (Brusco, 1990). In line with this fact, the investigation
of Silicon Valley has proved that informal contacts are mutually
beneficial, formed and reinforced by the culture of institutions
workers meet each other often and exchange technical and market
information (Saxenian, 1994). The creation of informal contacts
goes through several phases from relations between two individuals
to entire networks. The transformation starts with transfer of
knowledge between two individuals. Repeated interactions between
the two leads to falling costs of future interactions through the
development of routines and conventions, which decrease costs. This
makes the relationship stable and firms learn from the success and
failure of others and are able to monitor, discuss and compare other
firms’ solutions. In this way, they participate in a continuous learning
process by comparing different solutions, selecting, imitating, and
proposing their own ideas (Dahl and Pederson, 2004).
Accordingly, knowledge flows more easily in concentrated regions
due to contacts between individuals which evolve relationships,
consequently improve sharing and mutual help. Networks are a vehicle
that facilitate communication, information exchange and knowledge
sharing between employees. The knowledge-spillover process is more
concentrated on geographically bounded areas like clusters where
firms observe and assist from close each other experience and growth,
involving a continuous learning process (Saxenian, 1994); (Dahl and
Pederson, 2004).
Knowledge-spillover perspective on entrepreneurship networks state
the importance of networks in knowledge-spillover process. Although,
the spillover of knowledge doesn’t limit only in its dissemination, there
are a lot of factors that may influence the utility of the knowledge that
has been transmitted, like the individual “absorptive capacity” which
has a critical role in the transmission of new knowledge, also the
capabilities of entrepreneurs mediate how well they can make use of
network resources (Hayter, 2013; Brusco, 1990; Saxenian, 1994; Dahl
and Pederson, 2004).

2.3 
Knowledge-based entrepreneurship and networks: role
and implication
In the literature, there seems to be no general definition of KBE, a new
Advances in Business
concept that has recently appeared but the studies agrees in common
Management: characteristics that define this type of entrepreneurship that still in its
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perspective
early stage of investigation.

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 Knowledge-based Entrepreneurship: The Role of Networks
KBE regroup the entrepreneurial initiative based on scientific or
technological knowledge that consist on new resource combination.
These firms play a core role in emerging an innovative culture,
encouraging R&D activities, sparking a continued learning process
and making the market more competitive. The central of launch of
those firms is innovative opportunities. Those ventures require a
successful commercialization of innovation, qualified human capital,
internal capabilities and acceptance by the market, regardless of the
industry where they operate. Because they contribute to economic
and regional development (Kanellos, 2011, 2013).
Indeed, KBE is a special form of entrepreneurship; it is linked to the
so-called knowledge economy1, which hold activities that provide
the creation of new knowledge to create value. In other words,
it focuses on exploiting opportunities that aims to improve the
productivity and throughput of knowledge rather than to maximize
monetary profit (Kanellos, 2011).
Kanellos (2011) has presented the concept of KBE at the enterprise
level, referringto five key features: (a) New firms; (b) Innovative firms
(in terms of production processes based on knowledge); (c) Firms with
significant knowledge intensity in their activities; (d) Firms that exploit
innovative opportunities in various sectors and (e) Firms, through
appropriate strategic choices, achieve competitive advantage.
Moreover, knowledge do not conduct to performance and innovation, it
requires capabilities to launch ideas to make it beneficial. KBE retain
mechanisms to transform knowledge into economic activity, this refer
to the nature of activities based on the exploitation of new knowledge
in order to create an economic value. So, new knowledge is central
for those firms, to generate innovative products and services and so,
achieve performance and development (Kanellos, 2011).
“Many scholars argue that a better term for ‘Knowledge-Based
Entrepreneurship”’ would be ‘Innovative Entrepreneurship’, because
this type of entrepreneurship involves the development and diffusion of
product innovations or process innovations” (Kanellos, 2013).
Additionally, the activity sectors of KBF are not limited only to
high-technology sectors but also in traditional industries and sectors

1. The concept was introduced by OECD (1996), which refer to economies

that consist on producing, distributing and using knowledge, where R&D Advances in Business
Management:
present the core element of this approach as well as high-skilled labour which A contemporary
contribute to firms and economy’s performance. perspective

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Khadija Hamdani and Salah Koubaa
that are either existing or new. Their business models depend on the
knowledge required to exploit new opportunities and the creation of
economic value. Thus, innovation can happen in any sector no matter
how “traditional” it may be (Kanellos, 2013).
Hayter (2013) has also mentioned firm’s creation that refers to KBE
for their capability to attend high propensity for survival, attract
early stage finance, create new jobs and accelerating productivity.
He distinguished: high-technology start-ups, corporate spinouts and
university spinoffs.
A conceptual framework presented by Kanellos (2011), describes
KBE model as a structure that consider different factors. Essentially,
the importance of strategic choices that are made following
information links between internal and external resources, which
balance the complexity and the uncertainty of the activity that
determine KBF development and growth.
Garavaglia and Grieco (2005) establish a framework for a good
understanding of entrepreneurship and KBE, reviewed from different
disciplines and along with three levels (individual, organizational,
industrial). By only focusing on the implications of networks
referring to a sociological discipline: At individual level, being part
of a social network that share common values (risk sharing within
family), beliefs and culture influence in a supportive way the path that
an entrepreneur may hold when exploiting a new risky opportunity,
so that it become the “natural way of doing things”. In addition,
confidence is the core element in developing active and strong ties
(embeddedness in kin ties), that help on improving entrepreneurs’
abilities to identify opportunities. The other important element
that constitute entrepreneur’s profile is innovation encouraged
by the larger knowledge-set inside a social network, this involve
entrepreneurial alertness and creativity. At organizational level,
firms are meant to organize partnerships with other firms to extend
their activity. Entrepreneurs must coordinate with others to build a
new favourable context. Especially for KBE, exchanges with firms in
same industries, like constructing communities of sharing, help on
providing problem solutions and cunning, sharing information and
technological knowledge that could be used in order to generate new
ideas. Team-work and organizational culture are also important to
lead organizational culture on leading firm development at industrial
and technological level many aspects may influence KBF’s choices,
Advances in Business
Management:
as market and region’s characteristics (educational system, capital
A contemporary market, policy, development and employment, and social culture).
perspective

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 Knowledge-based Entrepreneurship: The Role of Networks
Johansson (2005) has examined the impact of networks on the way
KBf mobilize resources. First, only internal resources are not enough
to achieve growth so the need of external relationships help on
successfully acts upon the opportunity, refine it and to expand the
venturing process. Secondly, firm’s external networks are necessary to
access complementary assets such as problem solving. This statement
joins Garavaglia and Grieco’s finding (2005). Thereby, as KBF face
constraints on the early stages of creating, they need contacts to
provide useful information. Finally, firms need to build relationships
depending on its requirement, and as KBF hold a continuous R&D
activity, it’s necessary to build technology and innovation networks that
aid on reshaping and adapting strategic choices to market demand.
Relations give access to resources and influence KBE’s perception of
the opportunity to better commercialize it. Only internal resources are
not enough to achieve growth, they should be combined with external
resources. As well, as KBE develop a scientific and technological
knowledge, they need to build relationships, for a good mobilization
of resources in order to survive (Garavaglia and Grieco, 2005;
Johansson, 2005).
As a deduction, the role of networks is not limited in a specific part of
KBE development, they present a root factor that rise with the grown
of the firm, and which should be considered for their core impact on
supporting KBE.

3. Methodology

3.1  Research design

The literature present different sides of the role of networks within
KBE, based on the extant researches, the following proposition are
articulated:
Proposition 1: Networks support KBF by providing information,
resources and help on aligning ideas to market needs.
Proposition 2: Networks influence opportunity perception and
may re-shape the decision-making process while acting upon the
opportunity.
The aim of the present study is to empirically explore and analyse the
role of networks through knowledge-based firms. For that purpose, the
Advances in Business
suitable approach to discover or to analyse in depth a phenomenon is Management:
the qualitative method (Yin, 2009). Because the current literature and A contemporary
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Khadija Hamdani and Salah Koubaa
theoretical arguments support predicting the newness of a transverse
relation between networks and KBE’s survival.
Using case studies, which “remains the most appropriate when
the researcher asks a ‘How’ or ‘Why’ question, related to a set of
contemporary events whereby the researcher has less or no control
at all” (Yin, 2003); and used when a “researcher explores in depth a
program, an event, an activity, a process, or one or more individuals”
(Creswell, 2003). For data collection, the selected source of evidence is
interviews because they help on keeping the conversation balanced by
controlling the topic and give the chance to the interviewed to improvise
(Flick, 1998; Wengraf, 2001), to directly focus on the subject, as well
generating more information.

3.2  Research context: case studies

The study targets Moroccan knowledge-based firms, specifically start-
ups. The choice of case studies focused on that they adhere with KBE
concept, which means they use intense knowledge, their creation is
based on scientific or technological opportunity and the founders
endow an entrepreneurial spirit. Limitation to two case studies amounts
to a lack of data accessibility and finding cases that meets the required
criteria. The interviews were held with two Moroccan start-ups: VAIR
and O’FREC.
VAIR is specialized on energy production and distribution that
operate on renewable sector, created on October 2016 in Casablanca.
Passionate about social entrepreneurship, Nihale Mougaddar, a young
entrepreneur and an engineering student on ENSAM2 Casablanca,
creates the VAIR start-up that consists on the generation of electrical
energy by means of domestic wind turbines. She had the idea of
creating her start-up based on what she learned on Enactus3 ENSAM
Casablanca, as well in trainings and camps where she participated.
The start-up has three members as part of the project team and a
technician who work part-time. VAIR is incubated on a program

2 ENSAM: National High School of arts and crafts (École Nationale

Supérieure d’Arts et Métiers).
3 Enactus is an international NGO that works in the field of social student
entrepreneurship and sustainable development, it’s a community of students
Advances in Business and academic and economic leaders committed to using entrepreneurship to
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A contemporary improve lives and to shape a better and sustainable world (source: https://
perspective www.enactus-morocco.org/).

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 Knowledge-based Entrepreneurship: The Role of Networks
called DareInc4 directed by MCISE has won the second prize on
‘Our Project’ competition organized by Enactus HEM Casablanca on
March 2017.
O’FREC is, also, a young start-up created on March 2016 in Rabat,
under the direction of INJAZ Al-Maghrib5 program. Their activity
is the production of soap from the filtration residues of recycled
vegetable oil; the 100% ecologic soap was tested and approved by
the National Institute of Hygiene. The start-up has three persons
on the direction team and employes a technician, in charge of oils
treatment, which helps him to improve his standard of living. O’FREC
has built partnership with different companies and institutions,
and has participated to the international exhibition of agriculture,
nature and life pole (SIAM), that took place on Meknes (26th April
to 1st May 2016). This dynamic start-up has also won interesting
prizes: First prize on Startup Weekend Marrakech, Cop22 Edition;
Second regional prize on INJAZ Al-Maghrib competition held on
March 2016; Third prize on ‘Our project’ competition organized by
Enactus HEM Casablanca on March 2017.

4. Findings

4.1  Empirical results: analysis of interviews

Networks have been always proved in the literature as an important
asset for companies. In this work, networks will be analysed for their
role within opportunity and knowledge, they include various types of
contacts that may present strong or weak ties. For the present study,
networks include: regional aspects, support systems (i.e. NGO,
banking institutions, research institutions, universities, partners and
local events), personal and professional relationships (Hayter, 2016).

4 DareInc is a program, empowered by MCISE (Moroccan Center for

Innovation and Social Entrepreneurship), that support game-changers and
social entrepreneurs who are committed to developing innovative solutions
to major social issues with a high potential for scale, both locally and
internationally (source: http://dareinc.mcise.org).
5 Injaz Al-Maghrib is a non-profit organization that engages the private Advances in Business
Management:
sector to the youth to contribute to the emergence of a new generation of A contemporary
entrepreneurs (source: http://injaz-morocco.org/). perspective

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4.2  Networks and opportunity

Every entrepreneurship initiative is based on recognizing an opportunity
that aim to solve a problematic in order to generate an economic value.
The selected case studies are both based on ideas that aim to resolve a
problematic using the power of knowledge.
Opportunities are everywhere but not everyone can see them as a
chance to undertake a business, only entrepreneurs are able to perform
new combinations. Both cases got inspired from an example and then
develop it to create their start-up.
Aside from the origin of the opportunity, bringing into focus networks
within opportunity, Johansson (2005), as discovered previously, has
shown how network relationships support at each step when carrying
out an opportunity. In his analysis, relationships impact KBE actions,
he questions factors that influence opportunity in all steps of the
exploitation process, from identification, action till realization. He
distinguishes between strong and weak ties that depending on which
stage the firm is, the influence of networks and what KBF receive,
differs. Strong ties, influence perception in front of opportunities, how
to decide to act, help to identify opportunity and access to complex
assets. While weak ties help to match the technology-base with a
market opportunity, obtain diverse information, and to find a way to
act upon the opportunity.
The findings set up bear resemblance to what the literature present.
Start-ups have received support from different actors who are part of
their network.
The case of the start-up shows many important aspects. First, the
generation of the opportunity was supported by its network (support
system, regional aspects and personal relationships). The start-up faces
constraints in the product they’re developing and the founder was
about stopping the activity but due to the continuous encouragement
of her professor she continued. While acting upon the opportunity, an
encouragement that built many advices given by its personal networks
has helped to refine the idea and choose the market target.
On the same path, the start-up B has received support in terms of
financing to start the activity from support systems. Otherwise, while
identifying and acting upon the opportunity, the founder team got
inspired by another company; also, they have been influenced by their
Advances in Business personal network and regional aspects which help them to change
Management: their perception in front of opportunities as well as refining decisions.
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improve their idea and got advices and diverse information from their
relationships. Finally, the start-up holds various partnerships that help
on providing a strong brand image.

4.3  Networks and knowledge

Referring to the literature, the knowledge spillover perspective
considers networks as an important asset that provides resources and
conduct knowledge flow, they connect entrepreneurs with economic
agents that help to obtain useful information. Additionally, networks
are a “contextual variable” for KSTE, so it explains the way and the
reasons behind knowledge spillover (Hayter, 2013).
Bringing the focus, at first, on the importance of knowledge for those
start-ups and its sources, founders identified their main knowledge
sources, showed the place of innovation and evinced the importance
of knowledge and the need of a key combination of different fields
to drive company success. Secondly, centre of attention is about how
networks influence and help on providing information and knowledge.
The founders make sure to be part of communities of sharing and build
contact with other start-ups. Their network encourages, supports and
suggests new ideas to make better the own.
There was a significant impact of networks on knowledge sharing
in both cases, the contacts helped to collect information, ideas and
identify opportunities. This also encourage them to move on and take
their start-up to high levels.

4.4 Discussion
While revisiting the literature, the role of networks had been examined
for KBF as a central element in terms of providing resources. It had
been confirmed that networks are a supportive vehicle which afford
information, give access to resources, help to transfer knowledge,
connect with external environment and as well putting the KBF in
the right path by supporting and guiding to make right decisions and
contribute on development and growth (Hayter, 2013; 2016; Audretsch
et al., 2010).
According to the extant literature, there’s a close relationship between
knowledge, networks and entrepreneurship. Knowledge spillover is a
source of entrepreneurial opportunities, networks support opportunities
by the fact that it’s a vehicle that transfer knowledge and entrepreneurship Advances in Business
is the mechanism by which knowledge is exploited by seizing Management:
A contemporary
opportunities that are knowledge-base which lead to KBF creation. perspective

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A proposition of the conceptualization of this relation is illustrated
below:

Figure 1.  The relation between knowledge, networks and

entrepreneurship

Thereby, this conceptualization presents the relation in a global

level. To analyse this relation deeply, it’s important to consider
the characteristic of networks and its various types. The useful
and types of the knowledge spilled over, its transmission and the
entrepreneurs’ absorptive capacity to mainly measure the intense
and the benefits of this relations.
As regards to the empirical findings, it was found that networks do
support and encourage KBF, the results are in line with literature
findings. The analysis of this role from results has been examined
at two levels in terms of opportunity and knowledge. Significantly,
networks give so much support to these small structures, starting
from putting people on entrepreneurship path to realization of the
opportunity.
The how of that support and encouragement is exposed at their influence
on opportunities and knowledge. When referring to opportunity,
the impact is on all its steps from the identification, to action till its
realization, and what about knowledge, networks are the channel used
to transfer knowledge within contacts. In deduction, networks support
KBF by allowing resources and information beneficial to identify
opportunities and to dispose knowledge.
These results offer vital evidence about the role of networks as overall
response to questions about the useful and the content of contacts
confirmed that it’s central to care about its relationships and be part of
a community of sharing to benefit from network’s edges, essentially for
Advances in Business KBF to stay up to date about new ideas and opportunities as well have
Management:
A contemporary access to information and knowledge to make better decisions.
perspective

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Moreover, building network relationships composed of multiple parties,
this surround and incorporate the KBF with external environment.
These outcomes revealed the support that may be received from the
different agents that constitute KBF network. Revealed from the
empirical findings, they can be presented as follows:

Figure 2.  The role of different network’ actors on supporting

knowledge–based firms (KBF)
As illustrated in Figure 2, in Moroccan context, support systems
are generally on accompaniment and influencing the perception of
opportunities by initiating young people to entrepreneurship and
proposing programs and trainings in this domain as well organizing
events and competitions to release ideas. This is especially the mission
of NGO and local events that promote an entrepreneurship culture and
has shown a remarkable dynamism in recent years. While regional
aspects help on encouraging and access to complex assets (R&D,
innovation, funding, markets, …) and surround the start-up with
necessary resources. Mainly personal and professional networks are
used to establish, refine and convey knowledge and drive decision-
making process that define culture, value perception and nourish
knowledge set. Otherwise, all the components of KBF’s networks
contribute significantly on opportunity perception, decisions making
and knowledge transfer.
The findings follow the literature position and proved how much
networks are absolutely important. Making contacts and building
relationships help on relaying information, generating knowledge and
have access to new ideas to make better the own.
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5. Conclusion
Researchers have always seen knowledge as an important asset
for companies. The concept has gained much interest lately, for
its multidisciplinary nature. Managing and exploiting knowledge
help to attend a high level of innovation as well performance. The
kind of exploiting knowledge for economic purpose evoked in this
chapter, KBE contribute on creating new ideas based on two essential
elements: knowledge and opportunity. More specifically, when
talking about new knowledge creation, it’s necessary to highlight the
importance of a knowledge-spillover process to create value, and the
role of relationships contacts on knowledge-spillover process among
communities of sharing that premise the flow of new ideas.
The theoretical background dressed the contributions and theories that
explain the framework of KSTE which consider different measures that
describe the relation between knowledge and entrepreneurship, and
also describe the role of networks within this relation.
For knowledge-based firms, a growing body of theory has analysed
networks advantages. A first distinction between three levels (Garavaglia
and Grieco, 2005): individual level considers common values, risk-
sharing within family and knowledge set that influence entrepreneur’s
profile and their perception of opportunities. Organizational level
is about partnerships, team work and organizational culture that
provide information and knowledge to the KBF. Finally, industrial
and technological levels refer to educational system, capital market
and social culture that influence and adjust a KBF’s choices. A second
analysis (Johansson, 2005), in line with the first, but make distinction
between strong and weak ties, according to the three steps of exploiting
an opportunity; identification, action and realization, posit that strong
ties influence opportunities perception, decision-making process, may
restrict action, help to identify opportunities and access to complex
assets. While weak ties help to match the opportunity with market,
obtain diverse information and find a way to act upon it. This literature
overview helped to set up variables on which the analysis has focused.
Concerning empirical findings, as stated before, the main target was to
explore how networks encourage and support knowledge-based firms. The
chapter has investigated this question, using a qualitative approach based
on interviews by selecting two case studies -two Moroccan start-ups that
respond to KBE’s characteristics and meet at least two of the following
Advances in Business conditions: creation of a new combination, creation of new knowledge,
Management:
A contemporary
employ knowledge developed originally in science. The analysis focused
perspective on three variables: networks, knowledge and opportunities.

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 Knowledge-based Entrepreneurship: The Role of Networks
The utility and the implication of this study remain in exploring how
important networks are for this type of entrepreneurship (i.e. KBE).
The evidence from this study points towards the idea that it’s crucial
for knowledge-based firms to be involved on a community of sharing
surrounded by different type of relationships to benefit from the value that
networks provide to encourage and support them. The findings indicate
the role of networks among opportunities and knowledge, which goes
in line with what the literature enunciate. In regards to networks within
opportunities, empirical findings showed how networks put closer the
opportunity to entrepreneur by influencing their perception as well
decisions making. Concerning the role of networks among knowledge,
they react as a delivery chain which affords information and give access
to resources and new ideas.

5.1  Practical implication

This chapter focused on three essential variables; networks, knowledge
and opportunities, to explore and discover the role of networks within
knowledge-based firms. By employing a knowledge-spillover approach
related to entrepreneurial opportunities by an explicit link drawn in
Knowledge Spillover Theory of Entrepreneurship and bringing the
focus on networks and their role in this relation through the theoretical
contributions of entrepreneurship networks perspective. To address a
conceptual shortcomings of networks role in KBF model that present
the research subject of this chapter.
The study’s results nurture the networks entrepreneurship perspective,
show further aspects on which networks could contribute, especially for
innovative activities and point out how they support KBF by aligning
strategic choices to market needs, influencing opportunity perception,
driving decisions making and conveys knowledge.
Another explanation may be drawn about network edges within KBF.
As they give access to complex assets such as funding, we can say
that they support KBF survival; also, if they help to adjust strategic
choices and drive decision-making this mean that they contribute on
KBF growth, finally, providing information, resources and problem
solutions, lead to performance.

5.2  Future scope

Future work might seek to validate the propositions and test the
empirical model to a larger sample. Upcoming studies could address Advances in Business
Management:
some of the study limitation. It might be constructive if studies try to A contemporary
perspective

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Khadija Hamdani and Salah Koubaa
measure how networks support KBF survival and performance or even
focus on how networks relationships evolve over time.

5.3  Research limitation

A number of potential limitations need to be considered regarding to
the findings. Further data collection is required to see how networks
affect KBF in terms of performance and growth. The limitations to two
case studies does not give a complete image, which needs to integrate
additional methods of data collection that could increase the scope
and depth of analyses and the statements would be true. In fact, this
exploratory study is a starting point towards potential future researches
that may consider other variables to measure and analyse the role of
networks within KBF.

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