This study explores the relationship between entrepreneurial orientation (EO), business model innovation (BMI), firm performance, and technological turbulence (TT) in a developing economy context such as Albania. Data was collected through a survey with 201 firms in Albania and the structural equation modeling using the Maximum Likelihood estimation was employed to test the proposed relationships. The results indicate that EO has a significant impact on BMI, which in turn leads to improved firm performance. EO’s direct effect on performance was not significant, confirming that BMI fully mediates the EO-performance relationship. Furthermore, TT strengthens the EO-BMI link, with the positive effect of EO on BMI amplified under high TT. These findings underscore the crucial role of BMI as a mediator for EO to enhance performance in dynamic technological environments. This study contributes to the literature by providing empirical evidence from a developing economy and highlighting how internal strategic innovation and external environmental factors jointly drive firm performance.