<![CDATA[This study aims to analyze the relationships among innovation, entrepreneurial orientation, institutional environment, and organizational performance in the context of the modern economy. The study employs a qualitative approach using a literature review method by examining scientific publications from last five years. The findings indicate that innovation plays a significant role in improving productivity, competitiveness, and organizational sustainability. Entrepreneurial orientation, reflected through innovativeness, proactiveness, and risk-taking behavior, also contributes positively to organizational performance. However, the effectiveness of these strategies is strongly influenced by institutional conditions, both formal and informal. A supportive institutional environment strengthens the implementation of innovation and entrepreneurial activities, thereby enhancing organizational performance, whereas institutional limitations may hinder strategic effectiveness. The study highlights the importance of integrating innovation, entrepreneurial orientation, and institutional environment in responding to digital transformation and global economic dynamics to achieve sustainable organizational performance.]]>
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