Tujuan penelitian ini adalah untuk menganalisis pengaruh positif innovation capability terhadap business sustainability, sustainable competitive advantage, serta peran mediasi dari environmental dynamism dan organizational resilience dalam hubungan tersebut. Populasi dalam penelitian ini adalah pemilik UMKM di Tangerang dengan penyebaran kuesioner pada 300 responden. Penelitian ini menggunakan teknik sampling purposive sampling. Analisis data dalam penelitian ini menggunakan SEM-PLS. Hasil penelitian ini menunjukkan tidak ada pengaruh signifikan dari innovation capability terhadap business sustainability, innovation capability berpengaruh positif terhadap sustainable competitive advantage, sustainable competitive advantage berpengaruh positif terhadap business sustainability. Environmental dynamism memediasi hubungan antara innovation capability terhadap business sustainability. Organizational resilience memediasi hubungan antara innovation capability terhadap business sustainability. / The purpose of this study is to analyze the positive effect of innovation capability on business sustainability, sustainable competitive advantage, and the mediating role of environmental dynamism and organizational resilience in the relationship. The population in this study were UMKM owners in Tangerang with questionnaires distributed to 300 respondents. This study used purposive sampling technique. Data analysis in this study used SEM-PLS. The results of this study indicate that there is no significant effect of innovation capability on business sustainability, innovation capability has a positive effect on sustainable competitive advantage, sustainable competitive advantage has a positive effect on business sustainability. Environmental dynamism mediates the relationship between innovation capability and business sustainability. Organizational resilience mediates the relationship between innovation capability and business sustainability.