This study examines the effects of business model innovation and management knowledge on business performance and tests environmental uncertainty as a moderating variable among coffee shop SMEs in Mataram City. A quantitative survey design was applied to 70 coffee shop owners or managers selected through purposive sampling. The data were analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The findings show that business model innovation and management knowledge each have a positive and significant effect on business performance. Environmental uncertainty weakens the effect of business model innovation on business performance, whereas it strengthens the effect of management knowledge on business performance. The model explains 79.2% of the variance in business performance. These findings extend the Resource-Based View by showing that the value of internal resources is contingent on the firm’s ability to align innovation and managerial knowledge with environmental dynamics. Practically, coffee shop owners should balance business model renewal with stronger analytical and decision-making capabilities when environmental uncertainty rises. Keywords: Business Model Innovation, Business Performance, Environmental Uncertainty, Management Knowledge.
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