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Despite the widespread recognition of the significance of entrepreneurial innovations in driving financial success and building firms' competitive advantage, there is a lack of empirical investigation into their impact on organizations. This research paper aims to address this gap by exploring how entrepreneurial innovations can contribute to firms' competitive advantage and the mediating role of entrepreneurial thinking in this relationship. To answer these research questions, this paper utilizes the resource-based view (RBV) of the firm and the dynamic capabilities view (DCV).

The study employed a quantitative research design, and survey data were collected from 102 chief executive officers (CEOs) of Jordanian manufacturing companies in various industries. Structural equation modeling was used to test the hypothesized relationships.

The findings of this study suggest that there is a positive and significant impact of entrepreneurial innovation and thinking on the competitive advantage of firms. The authors also found that entrepreneurial thinking positively mediates this relationship. This study’s results support the RBV and DCV perspectives, which suggest that firms need to leverage unique resources and capabilities and develop dynamic capabilities to achieve a sustained competitive advantage.

The significance of this study lies in its contribution to the literature on the relationship between entrepreneurial innovation, thinking and competitive advantage. While previous research has explored these concepts separately, this study integrates them into a comprehensive framework that highlights the mediating role of entrepreneurial thinking in the relationship between entrepreneurial innovation and competitive advantage.