Using a quantitative approach, this study on micro-enterprises employing confirmation factor analysis (CFA) and structural equation modelling (SEM) AMOS version 21.0 tested the moderating effect of geographical location on the relationship between external networking and innovation performance. The study adds to the theoretical and practical knowledge on improving firm performance, specifically micro-enterprises. In addition, the findings will help the SMEs’ Masterplan towards achieving a high nation income by 2020 in line with The New Economic Model.