Abstract
MSMEs play an important role in economic development, yet their performance depends on social, institutional, and entrepreneurial resources that support adaptation and growth. This study examines the effects of social capital and government policy on entrepreneurial orientation and MSME performance, the effect of entrepreneurial orientation on performance, the mediating role of entrepreneurial orientation, and the moderating role of spiritual capital. A quantitative survey was conducted involving 150 MSME owners or business actors on Ambon Island. Data were collected using a five-point Likert questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4.0. The results show that social capital and government policy positively and significantly affect entrepreneurial orientation and MSME performance, while entrepreneurial orientation positively affects performance. Entrepreneurial orientation significantly mediates the relationships of social capital and government policy with MSME performance. Spiritual capital significantly strengthens the relationship between entrepreneurial orientation and MSME performance but does not moderate the relationships involving social capital or government policy. The study concludes that MSME performance is enhanced through social and institutional resources translated into entrepreneurial action, with spiritual capital strengthening the performance impact of entrepreneurial orientation.