In the dynamic landscape of contemporary business, achieving entrepreneurial resilience is an important goal for organizations facing unprecedented challenges. This study investigates the complex interactions between ambidextrous leadership, entrepreneurial mindfulness, and the mediating mechanisms of business model innovation capacity in fostering entrepreneurial resilience. This research uses a quantitative approach with the population of the startup community in Indonesia. A sample of 340 startup actors was selected randomly. Data was collected via a Likert Scale questionnaire with a scale range of 1-6. Hypothesis testing was carried out using Structural Equation Modeling (SEM) Partial Least Squares (PLS) to overcome model complexity and small sample size. Findings support the relationship between entrepreneurial alertness, ambidextrous leadership, business model innovation capacity, and entrepreneurial resilience. The theoretical implications enrich the literature by introducing mediating variables and leading to the development of a more comprehensive theoretical model. The practical implications highlight the importance of leadership development and business innovation to improve adaptation and response to change. Policy implications emphasize the need for policy support to strengthen entrepreneurship and innovation in the national economy.

Literature indicates it is crucial to understand how SMEs could adapt to changes in their external environment to develop a competitive advantage. However, there is limited discussion on how entrepreneurs’ resilience functions as one of the dynamic capabilities required to maintain their company’s competitive advantage in the long-term. This study aimed to investigate how entrepreneurial resilience affects SMEs ability to achieve sustainable competitive advantage. It also analyzed the moderating role of local cultural values in reinforcing resilience and sustainable competitive advantage. The population consisted of 400 handicraft SME who were thought of as Bali’s sustaining tourism sector. The results demonstrated that financial capital, human capital, and social capital were factors that shaped entrepreneurial resilience, where the ownership of capital and access to capital helped entrepreneurs when encountering changes in the dynamic and challenging industrial environment, where the role of financial capital was one of the sources of resilience that had the most significant influence. Furthermore, entrepreneurial resilience also contributed significantly to the achievement of sustainable competitive advantage. Moreover, the results also indicate that local cultural values strengthen entrepreneurial resilience because entrepreneurs who adjusted to local cultural norms developed in the surrounding community tended to respond positively to their behavior. Positive environmental acceptance could reinforce entrepreneurial resilience, given the psychological support of their behavior.