This study aims to investigate the effect of both adaptive strategic planning and entrepreneurial intensity on business performance and to scrutinise the indirect effect of these constructs on performance through both market orientation and innovation, in the setting of Indonesian SMEs. The sample for this study was drawn together using purposive sampling. One hundred and eighty-six entrepreneurs participated in this study. The data was analysed using Partial Least Square. The results of this study show that in order to enhance business performance, practitioners should pay attention to their strategic planning. The more adaptive their strategic planning, the more likely to have higher business performance. Moreover, the entrepreneurial intensity that is held by the entrepreneurs will also enhance their business performance. In addition, innovation also plays an important role in enhancing business performance. Innovation is proven to be a mediating variable between adaptive strategic planning and entrepreneurial intensity related to business performance. This study closes the gaps related to the re-development of the concept of adaptive strategic planning that has not been widely explored in the area of strategic management and entrepreneurship. This study also can be categorised as a comprehensive study that integrates entrepreneurial intensity as one of the internal factors affecting business performance. The study contributes to the theory by showing that innovation is a mediator, mediating the effect of both adaptive strategic planning and entrepreneurial intensity on business performance. From the practical standpoint, this study suggests that adaptive strategic planning formulated by SMEs as well as the owners’ entrepreneurial intensity are the major elements in enhancing business performance. Thus, to have a good business performance, SMEs should focus on their strategy and create an entrepreneurial spirit.