Competitive advantage implies gain of superiority over others, hence business organizations are all starving to achieve market competitive advantage.
Knowledge management is an important methodology in the development of creative behavior in small and medium-sized companies, particularly in relation to the acquisition of market, competitive and customer related knowledge. The large amount of data collected, stored, and processes by organizations made processes of knowledge management possible and so much rewarding for businesses.
Nowadays, with the world economy conditions worsening, reductions in government investment, and unemployment levels going high, entrepreneurship is considered the best way to confront these economy challenges (Frashah, 2002). The importance of entrepreneurship and its key role in the development of societies caused many of developed and developing countries to acknowledge its importance (Shane & Venkataraman, 2000; Brenkert, 2008; Tanoira & Valencia, 2014). Entrepreneurship and knowledge management are both considered among the most important to impact economic and business success (Ravasi & Turati, 2005).
As a result of recent transformation of global economy from managed to entrepreneurial economy, knowledge, innovation and entrepreneurship are regarded as new driving forces for economic growth (Audretsch, & Thurik, 2004). This study investigates the relationship between knowledge management and entrepreneurship to show the effect of knowledge management on entrepreneur projects and organizations in the pharmaceutical industry.
Entrepreneurship is the process of exploring and developing opportunities to create value for pre-established or new organizations. Entrepreneurship refers either to the activity of founding a new company or of initiating new activities within an existing enterprise (Gans & Stern, 2010). According to the international reports of entrepreneurial business (GEM, 2004), the concept can be defined as any initiative to establish new projects or expand existing projects by individual or group of individuals.
Griffin (2005) defined entrepreneurship as the process of planning, organizing, functioning, and making risk assumptions of business projects. The concept of entrepreneurship can be also defined as a process of discovery, assessment and exploitation of opportunities for products and goods creation and development (Shane & Venkataraman, 2000). An entrepreneur is the person who manages large production projects (Hisrich, 2005). Buchholz and Rosenthal (2005) define an entrepreneur as a person who creates something new or unfamiliar in a community to meet an underlying need of customers.
Entrepreneurs bear risks, violate familiar rules, penetrate agreed upon borders, and walk opposed the current situation (Brenkert, 2008). According to (Tanoira & Valencia, 2014), the entrepreneur is an individual able to start a project usually rejected by others. An entrepreneur has the ability to know how to understand the physical characteristics of the environment and fight against any inconvenience and does not fear failure, demonstrate capability for team work and motivating others. Entrepreneurs are consisted of not only individuals but also small groups, higher education institutions, medium-sized organizations, big business, or state capital.