Research Aims: This study examines the effects of dynamic capabilities, entrepreneurial resourcefulness, and business networks on MSME success, with innovation as a mediating variable. Design/methodology/approach: A quantitative cross-sectional survey was conducted involving 200 MSME owners in Garut Regency, Indonesia. Data were analyzed using PLS-SEM. Research Findings: Dynamic capabilities, entrepreneurial resourcefulness, and business networks positively influence MSME success. Innovation also contributes significantly and mediates the relationships between these factors and business performance. Theoretical Contribution/Originality: This study integrates Dynamic Capability Theory, the Resource-Based View, and Schumpeterian Theory to explain MSME success. It provides empirical evidence from a regional Indonesian context, highlighting innovation as a key driver of business competitiveness and sustainability.
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Nurhayati et al. (2026) studied this question.
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