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This study aims to examine the effect of entrepreneurial resources on micro businesses and the mediating role of innovation capability in this relationship.

A structured questionnaire was used to gather data for this quantitative study, which adopted partial least squares structural equation modelling to test the hypotheses on a sample of 455 women entrepreneurs in Malaysia.

The results reveal that entrepreneurial resources, particularly technical resources, positively and significantly affect innovation capability and enhance business performance. Furthermore, innovation capability mediates the relationship between entrepreneurial resources and microbusiness performance.

This study contributes theoretically by combining six entrepreneurial resources into a single framework in light of the resource-based view and finance-based theory …