Innovation provides surplus value compared to competing products or substitute products. The results of product innovation will create a separate market segment and spin off of old products. This study was conducted on Micro, Small and Medium Enterprises (MSMEs) in Kendal Regency with the aim of testing whether innovation can be driven by entrepreneurial orientation and learning orientation, which then drives business performance in micro, small and medium enterprises (MSMEs). This study also tests whether social media adoption can be driven by entrepreneurial orientation so as to drive the performance of micro, small and medium enterprises (MSMEs). The approach used is quantitative with the object of micro, small and medium enterprises (MSMEs) in Kendal Regency. The results of hypothesis testing with SmartPLS concluded that the relationship built by innovation mediation was significant while the relationship built by social media adoption mediation was not significant. This shows that innovation can mediate the relationship between entrepreneurial orientation and learning orientation on business performance in MSMEs while social media adoption does not mediate the relationship between entrepreneurial orientation and MSME performance. This study provides insight for MSME actors and policy makers to consider the importance of innovation and social media adoption in improving MSME business performance.