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This third volume of "Research in Competence-Based Management" (RCBM) continues the launch of a long-awaited outlet for peer-reviewed research papers contributing to advancement of competence-based management theory. Each volume in "RCBM" will be focused on a key aspect of competence theory. The focus in this volume on "Understanding Growth: Entrepreneurship, Innovation, and Diversification" addresses key processes essential to successful organization competence building, leveraging, and maintenance. The first set of papers in this volume explores the importance of entrepreneurial motivation in changing markets, as well as strategies for internal versus external funding and organization of entrepreneurial ventures. A second set of papers addresses some key issues in innovation in small and large firms, as well as the competence building process during technological innovation. Papers on diversification and alliances investigate the role of competence leveraging as a driver of diversification, as well as decision-making in innovation that can lead to diversification, cultivating institutions for improving innovation performance, and improving alliance management capability.