Abstract
The main problem on this research is the poor performance of SMEs. It can be caused by cultural factors of business (market orientation and entrepreneurial orientation) as well as factors of competitive strategy on SMEs. The research problem is how the influence of market orientation, entrepreneurial orientation and competitive strategy on the performance of SMEs. The purpose of this research is to analyze the effect of market orientation, entrepreneurial orientation and competitive strategy against the performance of SMEs. The samples were 100 SMEs Creative Industries in DIY with business fields handycrapts (various silver, natural fibers, pottery, leather, and wood) and fashion (various Batik). Testing the hypothesis in this study uses path analysis. The results showed that there are significant positive and significant correlation between market orientation and entrepreneurial orientation towards competitive strategy (differentiation strategy, low cost, and focus). Market orientation and entrepreneurial orientation positifdan impact significantly on the performance of SMEs. There is a positive and significant influence between competitive strategy against the performance of SMEs. Entrepreneurial orientation have direct influence higher than market orientation.
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