“…Ng et al (2020) stated that for MSMEs, innovation is a vital tool for improving company performance. Several previous studies have shown that product and process innovation has a positive relationship with MSME performance through increased productivity (Huhtala, Sihvonen, Frösén, Jaakkola, & Tikkanen, 2014;Oly & Iftikhar, 2012) and internal efficiency (Kocak, Carsrud, & Oflazoglu, 2017;Ratnawati, 2017) as it reduces production costs and positively impacts financial performance, specifically sales growth (Bahta et al, 2021;Wolf, Kaudela-Baum, & Meissner, 2012) and increased profits (Saunila et al, 2014). Based on previous evidence on the relationship between the variables, the fourth hypothesis is formulated as follows:…”