Abstract

This paper aims to investigate and test the role of Product Positional Advantage (PPA) in mediating the relations among Customers Orientation (CO), Product Innovativeness (PI), and Small Business Performance (SBP) in the Muslim fashion industry in Indonesia. This paper selected 299 small business fashions and tested the regression of all four constructs. The findings show that CO had an effect on PPA and SBP, while PI only affects PPA but it had no effects on SBP. PPA became a full mediator between PI and SBP, but it had no relations between CO and PPA. By examining the literature on various market orientations, small business performance and innovativeness, this paper offered a unique analysis of CO, PI and also its impact on SBP. Conceptual discussions and empirical results extended previous research on customer orientation and product innovativeness cultures in specific small businesses in the religious-based market segment.