The purpose of this study is to present a model that describes the general influence of technological capability, social capital, entrepreneurial orientation on firm performance through absorptive capacity in the food and beverage packaging industry in Indonesia which is tested with a structural equation model by processing data from 168 respondents. This study found that technological capability, social capital and absorptive capacity have a positive and significant effect on firm performance. Meanwhile entrepreneurial orientation has a positive but not significant effect on firm performance. Absorptive capacity partially mediates the relationship between technological capability and social capital on firm performance and absorptive capacity fully mediates the relationship between entrepreneurial orientation on firm performance

The purpose of this study is to present a model that illustrates the general influence of technological capability, social capital, entrepreneurial orientation on firm performance through absorptive capacity in the food and beverage packaging industry in Indonesia.This research found that technological capability, social capital and absorptive capacity have a positive and significant effect on firm performance. Meanwhile, entrepreneurial orientation has a positive but not significant effect on firm performance. Absorptive capacity mediates the relationship between technological capability and social capital to firm performance and absorptive capacity fully mediates the relationship between entrepreneurial orientation and firm performance. This study presents the mediating function of absorptive capability tested simultaneously with the variables technological capability, social capital, entrepreneurial orientation is something new from this study compared to previous studies. The findings in this study also provide an additional contradictory list of previous studies on the relationship between entrepreneurial orientation and firm performance.