This study aims to: 1) analyze the level of efficiency, elasticity, and the impact of inputs on the productivity of Small and Medium Industries (SMIs) in the Sarbagita region of Bali Province; 2) examine the influence of inputs and productivity on the performance of SMIs in the Sarbagita region of Bali Province; and 3) investigate the indirect effect of inputs on performance through the productivity of SMIs in the Sarbagita region of Bali Province. Non-probability sampling was employed, with a quota of 200 samples, and each district/city represented by 50 SMI actors. Data collection methods included observation, collection of relevant documents, and structured interviews using questionnaires. The analysis technique utilizes the Cobb-Douglas production function and SEM PLS. The analysis concludes that: 1) the use of capital and labor inputs has not yet reached optimum efficiency, and the elasticity of output to input is inelastic; 2) capital and labor inputs have a positive and significant effect on productivity, social capital has a positive and significant effect on performance, and productivity has an insignificant impact on the performance of SMIs in the Sarbagita region of Bali Province; and 3) there is no indirect influence of capital and labor inputs on performance through productivity in SMIs in the Sarbagita region of Bali Province. If the use of inputs, especially labor, is not well regulated, it results in inefficient operations and does not impact the improvement of business performance.