The Direct Effect of Entrepreneurial Orientation and Innovation Success on Firm Performance

Innovation plays pivotal role in whole business competition, while small firms in developing economies face challenging issue to invest in innovation. The research aims to examine the impact of innovation success as mediator variables on relationship among entrepreneurial orientation, human capital, social capital and firm performance.Hence, this research wants to contribute to the literature of product development management. With independent variables of entrepreneurial orientation, human capital and social capital, the research employs sample of small and medium enterprise from Malaysia and Indonesia.Through employed innovation success as moderator variable, the research indicates positive relationship between entrepreneurial orientation and firm performance. However, the evident highlights negative relationship between human capital and firm performance as well as social capital and firm performance.