Surviving the Storm: Exploring the Nexus of Innovation on Performance through Entrepreneurial Skill

Purpose: This research delves into the influence of innovation on micro, small, and medium enterprises (MSMEs) in the tourism sector amidst the COVID-19 pandemic, with a focus on the moderating role played by entrepreneurial skills. Design/methodology/approach: The study adopts an explanatory positivist approach and utilizes random sampling techniques to gather data from a sample of 200 MSME owners or managers operating in various segments of Bali's tourism industry, including restaurants, hotels, lodges, bars, water sports, and travel agencies. To analyze the hypoth-eses and construct a suitable model, partial least squares (PLS) is employed. Findings: The findings indicate that product and market innovation significantly enhance MSME performance, while process innovation shows no direct effect. Entrepreneurial skills strengthen the positive effects of product and market innovation but do not influence process innovation outcomes. Research limitations/implications: This study contributes to the literature by contextualizing innovation and en-trepreneurial skills within tourism MSMEs, offering actionable insights for policymakers and practitioners to support resilience and performance. Originality/value: This study aims to provide valuable insights into the impact of innovation on improving MSME performance, highlighting the moderating influence of entrepreneurial skills.