Women-led small and medium enterprises (SMEs) increasingly rely on digital platforms to sustain growth and competitiveness. However, the extent to which institutional support and network capability contribute to business performance through digital innovation remains underexplored. This study investigates the mediating role of digital innovation in the relationship between institutional support, network capability, and business performance among women-led SMEs in Indonesia. Using a quantitative approach, data were collected from 172 women entrepreneurs operating SMEs that actively utilize digital technologies. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results reveal that both institutional support and network capability significantly influence digital innovation, which in turn positively affects business performance. Furthermore, digital innovation mediates the relationships between institutional support and business performance, as well as between network capability and business performance. These findings underscore the strategic importance of fostering digital capabilities in women-led SMEs through supportive institutional policies and network development. The study contributes to the resource-based and institution-based perspectives by highlighting the mechanisms through which external support and internal capabilities translate into enhanced performance. Implications for policymakers, support organizations, and women entrepreneurs are also discussed.