The rapid convergence of digital technology and intense global hyper-competition compels organizations, particularly those in the grassroots economy, to fundamentally reassess their operational models and strategic capabilities (Agazu & Kero, 2024; Oliinyk, 2024). This study addresses the critical need for enhanced performance among Community Enterprises (CEs) operating within Thailand's Eastern Economic Corridor (EEC), a region strategically vital for national development but where CEs often face limitations in modern management and technology adoption (Jarusen & Cheunkamon, 2024; Meteeworachat, 2023). The research investigates the synergistic influence of three key antecedent factors—Knowledge Management (KM), Market Orientation (MO), and Digital Transformation (DT)—on Innovation Capability (IC) and subsequent Operational Performance (OP) of these enterprises. The study employed a Mixed-Method design to achieve three objectives: 1) to examine the current levels of KM, MO, DT, IC, and OP among CEs, 2) to investigate the causal influence of these factors on OP, and 3) to construct and validate a robust Structural Equation Model (SEM). The quantitative phase utilized data collected via a questionnaire survey from a targeted sample of 300 CE members in the three EEC provinces (Chachoengsao, Chonburi, and Rayong), adhering to the requisite sample size for SEM analysis (Hair et al., 1998; Schumacher & Lomax, 1996). The qualitative phase involved in-depth interviews with 15 key informants to contextualize the quantitative findings and explore practical mechanisms (Douglas, 2003; Miles & Huberman, 1994). The analysis confirmed a high level of model-to-data fit, validating the proposed structural relationships. Key findings supported all seven hypotheses (H1-H7). Specifically, KM, MO, and DT were found to exert a direct, positive, and significant influence on IC (H1, H3, H5), reinforcing IC as a crucial mechanism for competitive advantage (Migdadi, 2022; Yaskun et al., 2023; Chen & Kim, 2023). Furthermore, KM, MO, and DT also demonstrated a direct, positive influence on OP (H2, H4, H6), underscoring their direct role in enhancing operational efficiency and market responsiveness (Rafi et al., 2022; Yu et al., 2022). Crucially, IC was confirmed to have a strong, positive, direct influence on OP (H7), serving as the core translation mechanism from strategic inputs to tangible performance outcomes (Fang et al., 2022). These results provide crucial theoretical support for the hypothesized model, establishing the antecedent factors as essential strategic priorities for grassroots organizations. The findings yield actionable policy implications for government agencies (e.g., the Department of