Objective: The rapid evolution of digital and physical markets creates significant growth opportunities for headscarf MSMEs. This study demonstrates that managers must leverage entrepreneurial orientation through new product development to maximize marketing performance. New product development acts as a mediating variable, enabling MSMEs to boost sales volume and achieve long-term profitability effectively. Research Design & Methods: This study uses a quantitative approach by collecting data and analyzing it using a sample of 240 headscarf MSMEs in Jepara using the purposive sampling method. The data collected in this study were collected through questionnaires to test the empirical model using Structural Equation Modeling (SEM-AMOS). Findings: The results of this study indicate that the application of entrepreneurial orientation by MSMEs will increase new product development, which will ultimately have a positive impact on marketing performance. Efforts to increase new product development can also be strengthened by implementing product attractiveness and market penetration strategies, which also improve marketing performance. Implications & Recommendations: This study highlights how MSMEs can improve marketing effectiveness by utilising entrepreneurial orientation and innovative product development. To increase product appeal, enter markets successfully, and promote long-term company growth, MSMEs should focus on innovation and proactive tactics. Contribution & Value Added: This study examines how entrepreneurial orientation affects marketing performance in Indonesian headscarf MSMEs. By using new product development as a mediator, it provides insights into enhancing product attractiveness and market penetration, driving sustainable growth in this dynamic sector.
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