Business resilience lies in its capacity to enable organizations to adapt, recover, and thrive in the face of adversity, uncertainty, and disruptive challenges. This study examines the business resilience of Micro, Small, and Medium Enterprises (MSMEs) in the tourism industry of Region XI, utilizing a descriptive-correlational research design. Through a comprehensive literature review, the study delves into the interplay between dynamic capability, innovation capability, and business resilience, aiming to discern the relationships and characteristics of these vital variables. The findings reveal remarkable levels of resilience, dynamic capability, and innovation among MSMEs in the region, indicating their readiness to adapt, withstand challenges, and drive innovation within their businesses. Furthermore, the study identifies a strong and positive interdependence between dynamic capability, innovation capability, and business resilience, creating a dynamic and adaptable ecosystem for MSMEs. The significant role of innovation capability as a mediator in enhancing business resilience underscores the importance of fostering innovative practices to fortify the overall resilience of MSMEs. These insights provide valuable implications for policymakers, industry stakeholders, and MSMEs in crafting strategies to bolster business resilience and drive sustainable growth in the tourism sector.
