https://dinastipub. org/DIJEFA Vol. No. 2, 2025 DOI: https://doi. org/10. 38035/dijefa. https://creativecommons. org/licenses/by/4. The Influence of Customer Relationship Strategy. Innovation Strategy and Capability Strategy on Competitive Advantage and Its Implications on Marketing Performance in Small and Medium Enterprises in the City of Bekasi Widi Winarso1*. Nandan Limakrisna2. Hari Muharam3 Pakuan University Management Science Doctoral Student1, widi. winarso@dsn. Pakuan University Management Science Doctoral Lecturer2, amarta. nandan@gmail. Pakuan University Management Science Doctoral Lecturer2, hari. muharam@unpak. Correspondence Author: widi. winarso@dsn. Abstract: Indonesia's position in global competitiveness is considered low compared to other ASEAN countries. This indicates that the competitive advantage of the industry and other SME sectors is considered not optimal. The competition for SMEs in the fashion sector to compete for the market and the increasing number of SMEs has caused the SMEs in the fashion sector to determine the right strategy in marketing their business products. The purpose of this study was to analyze the effect of Customer Relationship Strategy, business innovation strategy and capability strategy on competitive advantage and the performance of SMEs in Bekasi City. This research approach is a quantitative approach. Exogenous variables include Customer Relationship Strategy, innovation and capability strategy. Endogenous variables are competitive advantage and competitive advantage. The endogenous variable in this study is marketing performance. The population of this research is the owners and employees of SMEs in Bekasi City, totaling 561 SMEs. Based on calculations with the Slovin formula, the total sample is 235 SMEs. The analytical method used is the Structural Equation Model (SEM). SEM assumption test consists of outliers, multicollinearity, minimum number of samples. Hypothesis testing using CR and t test. Keywords: Capability Strategy. Customer Relationship Strategy. Innovation Strategy. Competitive Advantage and Marketing Performance INTRODUCTION The role of Small and Medium Enterprises (SME. as mover the economy is very large, where the Indonesian business world at the moment This Still dominated by MSMEs. The number of business This reach more from 26 million business or 98. 68 percent of total effort non-agricultural in Indonesia. This business is also capable of absorb power Work more of 59 million people or around 75. 33 percent from of total power Work non-agricultural (Central Bureau of Statistics , 2. There are Lots The advantages of SMEs are: First , generally produce goods consumption and services that are close with need society . Second , no depend 1502 | P a g e https://dinastipub. org/DIJEFA Vol. No. 2, 2025 on material standard import and more utilise source Power local Good from side source Power human , capital, materials standard , and equipment . Third , using your own capital. or No supported loan from SMEs (BPS, 2. Urata . which has observe development business small in Indonesia, stressed that business small in Indonesia playing role important in a number of matter among others: . Small businesses is player main activity Indonesian economy , . Providers chance work , . Players important in development economy local and development society , . Market creators and innovation through its dynamic flexibility and sensitivity as well as its relevance with with a number of company , . Provide contribution to improvement non- oil and gas exports . development of SMEs in Indonesia is visible From data reported by the Ministry of Cooperatives and Small and Medium Enterprises ( Kemenkop UKM), the total number of SMEs in Indonesia will reach 8. 71 million business units in 2022. Java Island dominates sector This . It is noted that West Java is UKM champion with total 1. 49 million business units . Thin in the ranking second There is Central Java which reaches 1. 45 million units. Third , there is East Java as many as 1. 15 million units. Outside three big that 's the gap Enough far away . DKI Jakarta won position fourth Can to carve almost 660 thousand units. Fifth , there is North Sumatra with achievement 596 thousand unit. Meanwhile amount least effort there are three regions , namely West Papua 4. 6 thousand business units . North Maluku 4. 1 thousand units, and Papua 3. 9 thousand units. Based on type , industry food is the most types of SMEs compared to group industry other with total of 1,518,924 businesses . Indonesia's position in Power global competitiveness is assessed Still low compared to other ASEAN countries . This is indicates that superiority compete industry and sector other rated not optimal, source Power nature and resources Power Indonesian people are like that abundant Not yet optimized with This is also explained in the value Power competition like following . Figure 1. Indonesia's Competitiveness Value Based on mark Power Indonesia's competitiveness then development mark Power competition from 2020 to 2022. Power value competition in 2017 it was 63. Then 2018 increased to 64,935. But in 2022 it experiences decline mark index as many as 64,625. Rita and Irma . explain that the inability of SMEs in increase Power competition due to because SMEs have various limitations, such as lack of ability For adapt with environment , less agile in opportunities effort , lack of creativity and innovation in anticipate various challenge environment . Besides that , internally. SMEs are lacking have ability managerial and skills and lack of capital and markets (Tambunan, 2. 1503 | P a g e https://dinastipub. org/DIJEFA Vol. No. 2, 2025 LITERATURE REVIEW The purpose of study This is : For analyze influence Customer Relationship Strategy to superiority competing SMEs in Bekasi City. For analyze influence of business strategy innovation to superiority competing SMEs in Bekasi city . For analyze influence capability strategy to superiority competing SMEs in Bekasi City. For analyze influence Customer Relationship Strategy to performance SME marketing in Bekasi City. For analyze influence of business strategy innovation to performance SME marketing in Bekasi City. For analyze influence capability strategy to performance SME marketing in Bekasi City. For analyze influence superiority compete to performance SME marketing in Bekasi City. For analyze whether Customer Relationship Strategy , business strategy innovation and capability strategy influential in a way together The same to superiority competing SMEs in Bekasi City. For analyze whether Customer Relationship Strategy, business strategy innovation, capability strategy and excellence compete influential in a way together The same to performance SME marketing in Bekasi City This research has several innovations, including: Development of a proposed basic theoretical model. Difference study This with study previously is in general study about Customer Relationship Strategy , innovation and capability strategy and performance marketing only use draft market based view or resource based view only No in a way comprehensive so that often No capable explain Customer Relationship Strategy . Innovation and capability strategy increase performance marketing , while in study This integrate draft resource based view theory with objective For can give explanation about difference results study about connection Customer Relationship Strategy . Innovation and capability strategy and performance marketing in a way comprehensive . The originality of the theoretical model proposal in this study contributes to the development of marketing management science on the integration between resource based view theory. Hypothesis Development and Empirical Models. Originality of the research model empirical First is study This started from factor factors that can influence superiority compete , so that can obtained clarity about How increase Customer Relationship Strategy , innovation and capability strategy in A organization in frame increase performance marketing . Different with study previously which in general more emphasize connection causal between Customer Relationship Strategy , innovation and capability strategy with performance organization , so that research that tests about influence Customer Relationship Strategy . Innovation and capability strategy towards performance through superiority compete Originality of the empirical model second is in study This will testing strategies focused on producers in matter This Customer Relationship Strategy , innovation and capability strategy towards performance marketing through superiority compete so that with existence variable intervening. Originality development hypothesis and empirical models will give contribution to development knowledge management marketing Because explain influence Customer Relationship Strategy , innovation and capability strategy towards performance marketing. Customer Relationship Strategy , innovation and capability strategy towards innovation , innovation to performance marketing as well as explain factors For develop Customer Relationship Strategy . Innovation and capability strategy , and transformation process 1504 | P a g e https://dinastipub. org/DIJEFA Vol. No. 2, 2025 market orientation becomes performance marketing . Different with study previously which in general only test influence direct Customer Relationship Strategy , innovation and capability strategy with performance organization , so that cause controversy results study about Customer Relationship Strategy . Innovation and capability strategy towards performance marketing . This research is based on the right theoretical framework to prove the truth in this research, so that the researcher compiles a management theory framework. This research uses the Grand Theory of marketing performance. Middle Range Theory in this research is a marketing strategy that can be interpreted as a company's plan to be able to introduce a brand as widely as possible in order to achieve customer and sales targets. Furthermore, the Applied theories used in the research include Customer Relationship Strategy . Innovation Strategy. Capability Strategy and competitive advantage. Marketing Performance Menurut Kotler dan Keller . pemasaran adalah AuMarketing is about identifying and meeting human and social needs. One of the shortest good definitions of marketing is meeting needs profitablyAy. Pemasaran menurut Kurtz . adalah AuMarketing is an organizational function and set of process for creating communicating and delivering value to customers and for managing customer relationships in that benefit the organization andils stakeholdersAy. Marketing performance as a result of a series of company activities is the impact of the role of all parts of the organization. One of the strategic roles developed by the company is the development of strategy. selling-in as an effort to build market access for company products to enter the market evenly and competitively. Ferdinand . stated that distribution policies can be developed based on two basic choices, namely selling-in policies that are within the control area of the distribution company and selling-out policies that are outside the control area of the distribution company. According to Ferdinand . , marketing performance is a factor that is often used to measure the impact of the strategy implemented by the company. Marketing performance is an important element of company performance in general, namely to measure the marketing performance of a company. Every company is interested in knowing its achievements as a reflection of business success in market competition. Superiority Compete According to Kotler and Armstrong . , the advantages compete is : Au An advantage over competitors gained by offering consumers greater valueAy. ( A superiority on competitors obtained with offer consumer mark more ). Kotler and Armstrong . , explains There is three dimensions that is : Overall Cost Leadership (Leadership Total Cost ) Companies strive to achieve low production and distribution cost levels. most low. Cost Which low can make price sell be lower than competitors so that it can gain a large market Examples of companies that have successfully adopted This low-cost strategy is Walmart and JetBlue Airways. Differentiation (Differentiatio. This differentiation strategy is a company that concentrates on creating product lines and marketing programs that are different from those of competitors, so that this can lead the company to gain an advantage. from for its competitors. Example company Which do This strategy is Nike and Caterpillar. Focus Companies try to serve a few market segments well, rather than trying to go after the 1505 | P a g e https://dinastipub. org/DIJEFA Vol. No. 2, 2025 entire market. An example of a company that has adopted this strategy is Ritz-Carlton. Dessler like quoted by Pack . state that AuCompetitive advantage is any factor that allow an organization to differentiate its product or service from those of its competitors to increase market shareAy. (Superiority Competing is a factor that allows an organization to differentiate its products or services from competitors to increase market share. Pakaya . explains the indicators competitive advantages such as: Uniqueness Product is uniqueness product company which combines artistic value with customer taste. Quality product is design quality from company products . Price compete is ability company For adapt the price of the product at general market prices According to Dalimunthe . , superiority compete is ability effort to create superiority competitive so that can compete with competitors. As for the indicators superiority compete Dalimunthe . that is . Competitive price . Ability management . Profit . Position . Place strategic. Customer Relationship Strategy Customer Relationship Strategy according to Kotler And Keller in Parvatiyar and Sheth explain Parvatiyar and Sheth in Laksmana et al . is the process of maximizing customer loyalty by managing detailed information about each customer as well as possible. Parvatiyar and Sheth explain that there is three indicators in measuring customer relationship management, namely Continuity marketing Continuity marketing is a program marketing to maintain and increase loyalty customer through service special Which long-term, and increase value by studying customer Continuity marketing programs can take the form of programs card membership Where customer given award in the form of service special in a way individual, discount And points For upgrades, as well as cross selling program. One to One Marketing one to one marketing program is a program that is carried out individually. Which intended For fulfil satisfaction on need Which unique from customers. One to one marketing programs use customer information derived from online information and databases, which is continued with individual interactions with customers to meet the unique needs of customers. Individual customer information is used to build interactive marketing and post-marketing programs in developing customers. Partnering Program The partnering program is a collaborative relationship between marketers with other companies to serve end customer needs. In other words, the company will trying to help customer For get what is desired with method cooperate with companies other out there. Innovation Strategy According to Jauch and Gleuck (Amirullah, 2. , strategy is a unified, comprehensive and integrated plan that links the company's strategic advantages with environmental challenges and is designed to ensure that the company's main objectives can 1506 | P a g e https://dinastipub. org/DIJEFA Vol. No. 2, 2025 be achieved through proper implementation by the company. Strategy is understood not only as various ways to achieve goals but also includes determining the various goals themselves. According to Chandler, strategy is a pattern that includes both strategies that. or strategies that were not initially intended by the company but became strategies that were considered and even chosen by the company to be implemented. Strategic management according to Ismail . , namely as a process of planning, directing, organization and control of various decisions and strategic actions of the company with the aim of achieving competitive advantage. This strategic management is related to strategic decision making, namely various managerial decisions that will affect the existence of the company in the long term. Strategic decisions can be taken by top management at the corporate level or at the business unit . This strategy also requires that workers must be creative, capable and able to cooperate with each other, implement long-term goals, have attention and responsibility for the quality and quantity of goods and services produced, and can limit ambiguity. Formal organizational policies need to be considered in order to support the creation of innovation A company that is successful is a company that has a commitment to support the decision of top managers to carry out a spontaneous creative business development. Overall, a company that implements innovation, the profile of behavioral roles its employees have a high level of creative behavior and a high level of risk return. Strategy comes from the word Strategos in Greek which is a combination of Stratos or army and ego or leader. A strategy has a basis or scheme to achieve the intended target. So basically strategy is a tool to achieve goals. Quinn . According to Marrus . strategy is defined as a process of determining the plans of top leaders who focus on the long-term goals of the organization, accompanied by the preparation of a way or effort on how to achieve these goals. Strategy is also defined as a unified, comprehensive and integrated linking corporate strategy advantages with challenge environment and designed For ensure that objective main company can achieved through proper implementation by the company. This is as expressed by Ohmae . that business strategy, in a word, is about superiority Capability Strategy Capability Strategy can be interpreted as a pattern applied by a company in using resources and becomes a routine from time to time. Capability Strategy can help companies feel and respond to market changes such as competitor movements, technological changes, allowing companies to utilize partner capabilities and resources to create value and facilitate companies to understand customer needs (Day, 1. Capability Strategy is measured by several dimensions, including: Marketing culture capability. This means that the culture in each region always has differences. By knowing the cultural differences in each region or area that exist, then the company can determine the right strategy to apply the strategy through the company's operational activities. example of an operation that exists within the company is the SOP ( Standard Operational Procedures ) that exist in the company. Operational capability This shows the ability to fulfill the company's operational activities. Capability Strategy can make a company reach its maximum point because of the improvements made inside and outside the company. The development of service and products does not only develop from within, but also follows the competition in the market together with competitors. With this reality, companies are required to be able to produce new products or develop new products with good functions to be used in the 1507 | P a g e https://dinastipub. org/DIJEFA Vol. No. 2, 2025 competitive world (Saleh, 2. Sensitivity to the development of this product can be obtained when the company has good marketing capabilities. According to Blesa and Ripolles . who adopted (Day, 1. the definition of Capability Strategy is a complex collection of skills and accumulated knowledge, carried out through organizational processes that allow companies to coordinate activities and utilize their assets and resources. Optimal Capability Strategy can provide superior market sensing, connecting customers and distribution channel capabilities as a result, and can be the key to success in the international market. Capability Strategy has eight fundamental indicators in and for companies to measure their success (Blesa and Ripolles, 2. , namely: Pricing Capability The company has the ability to set prices that are commensurate with the value given to customers , the prices offered are also in accordance with the purchasing power of the target market and looking at the conditions of competitors. ) New Product Development Capabilities The company has the ability to develop and create new products that suit the dynamic desires and needs of customers . Channel Management Capabilities The company has the ability to manage the company's distributors in providing added value to distribution practices. Marketing Communication Capabilities The company has ability For arrange perception customer value, able to make customer has perception positive product so that can build good brand image in the eyes customer . Selling Capabilities The company has ability For develop management and systems sale as well as provide training for sales representatives Market Information Management Capabilities. The company has ability For to obtain information regarding the main target customers as well as do analysis of this information to carry out effective marketing programs. Marketing Planning Capabilities The company has the ability to prepare effective marketing programs by looking at the results of analysis of information from the customer side . Marketing Implementation The company has the ability to apply marketing strategies that have been analyzed and marketed to customers well. RESEARCH METHODOLOGY Study This use quantitative in general study quantitative more emphasizes on freedom/liberty information, so that method This suitable used For wide population with limited variables (Sugiyono, 2018: . Furthermore the conclusion obtained from results observation to limited variables the done generalization , namely give conclusion sample applied to population from which the sample is drawn the taken . With the approach quantitative also more give meaning in the relationship with interpretation number statistics . Therefore researcher use questionnaire as tool For measure matter said . Research This including in study explanation . xplanatory researc. Because study This mean to explain connection causal . between variable through testing hypothesis that has been formulated (Kuncoro , 2014:. Data retrieval in study This done with using coverage data time horizon which is cross sectional in nature, where data is obtained at one time time certain. The data to be analyzed 1508 | P a g e https://dinastipub. org/DIJEFA Vol. No. 2, 2025 collected from phenomenon that has There is without try For intervene in it . Based on data analysis, research This is study analytical Because analyze data and samples with use statistics generalized inductive For going to population. Types of research used is explanatory research or study explanation, namely a type research that highlights connection variable study this and test hypothesis that has been formulated previously. Research This test the influence of Customer Relationship Strategy, innovation and capability strategy on Competitive Advantage as well the implications to performance marketing in Bekasi SMEs. RESEARCH RESULTS AND DISCUSSION Validity Test Construct For Variables Exogenous Construct test results variable performance marketing evaluated based on goodness of fit index shown in Figure 2. Figure 2. Results of Confirmatory Factor Analysis of Marketing Performance Confirmatory Factor Analysis in Figure 2 shows that there are goodness of fit parameters that are met criteria from the fit model. The evaluation of the proposed model in Table 2 shows that model evaluation of construct performance in a way overall produce value above critical which shows that the model has in accordance with data, so that can further model suitability testing was carried out . Variables that can be used as indicator from variable superiority compete , shown from mark loading factor or coefficient lambda of each indicator presented in Table 4. 26 with provision all over latent variables constructed by their indicators own mark loading > 0. 5 at level significance , =0. with provision the size of the CR must be more big from 1. 96 or mark significance more small from 0. 05 so indicators This in accordance analyzed with CFA , in other words valid indicators in measure score variable latent . Evaluation results model criteria explained in Table 3. Table 3. Evaluation Criteria Goodness of Fit Index Performance Goodness of fit index Cut of value Chi Square Significant Probability It is expected small Ou 0. Model Results 48,277 0,000 Information Marginal Fit Marginal Fit 1509 | P a g e https://dinastipub. org/DIJEFA RMSEA GFI AGFI CMIN/DF TLI CFI Vol. No. 2, 2025 O 0. Ou 0. Ou 0. O 3. Ou 0. Ou 0. 5,364 Marginal Fit Good Fit Marginal Fit Marginal Fit Marginal Fit Good Fit Variables that can be used as indicator from variable performance marketing shown from mark loading factor or coefficient lambda of each indicator presented in Table 4. 27 with provision all over latent variables constructed by their indicators own mark loading > 0. 5 at level significance , =0. with provision the size of the CR must be more big from 1. 96 or mark significance more small from 0. 05 so indicators This in accordance analyzed with CFA , in other words valid indicators in measure score variable its latent. Table 4. Loading factors () Measurement Variables Performance Variables and Indicators Loading K6 <--Performance K5 <--Performance 0,800 7,913 0,000 K4 <--Performance 7,825 0,000 K3 <--Performance 7,381 0,000 K2 <--Performance 7,315 0,000 K1 <--Performance 5,868 0,000 Source : Appendix 8 . Description : * standard deviation approaching 0 ( zero ) After CFA test was conducted per variable so Then valid indicators are selected which are tested based on CFA endogenous construct as following . Figure 3. Results of Confirmatory Factor Analysis Construct Exogenous Variables that can be used as indicator from variable performance marketing shown from mark loading factor or coefficient lambda of each indicator presented in Table 4. 28 with provision all over latent variables constructed by their indicators own mark loading > 0. 5 at level significance , =0. with provision the size of the CR must be more big from 1. 96 or 1510 | P a g e https://dinastipub. org/DIJEFA Vol. No. 2, 2025 mark significance more small from 0. 05 so indicators This in accordance analyzed with CFA , in other words valid indicators in measure score variable its latent . Table 5. Loading factors () Measurement Variables Exogenous Variables and Indicators Loading ,103 9,487 0,000 CRS ,114 7,956 0,000 <--- CRS 0,767 ,103 9,136 0,000 CRS10 <--- CRS 0,680 ,127 8,183 0,000 INO7 <--- INOVASI 0,724 INO6 <--- INOVASI 0,914 ,104 12,186 0,000 INO5 <--- INOVASI 0,892 ,109 11,885 0,000 INO4 <--- INOVASI 0,863 ,093 11,472 0,000 INO3 <--- INOVASI 0,838 ,101 11,121 0,000 INO2 <--- INOVASI 0,610 ,072 7,997 0,000 INO1 <--- INOVASI 0,649 ,107 8,528 0,000 CS1 <--- 0,737 CS2 <--- 0,614 ,087 8,038 0,000 CS3 <--- 0,877 ,111 11,768 0,000 CS4 <--- 0,850 ,113 11,375 0,000 CS5 <--- 0,829 ,111 11,087 0,000 CS6 <--- 0,603 ,124 7,896 0,000 CS14 <--- 0,630 ,106 8,262 0,000 CS15 <--- 0,543 ,098 7,080 0,000 CS16 <--- 0,517 ,120 6,729 0,000 CRS1 <--- CRS CRS7 <--- CRS CRS8 <--- CRS9 Description : * standard deviation approaching 0 ( zero ) The results of t he CFA test for endogenous variables are explained in Figure 4. Figure 4. Results of Confirmatory Factor Analysis Endogenous Construct 1511 | P a g e https://dinastipub. org/DIJEFA Vol. No. 2, 2025 Variables that can be used as indicator from variable performance marketing shown from mark loading factor or coefficient lambda of each indicator presented in Table 4. 30 with provision all over latent variables constructed by their indicators own mark loading > 0. 5 at level significance, =0. with provision the size of the CR must be more big from 1. 96 or mark significance more small from 0. 05 so indicators This in accordance analyzed with CFA , in other words valid indicators in measure score variable its latent . Table 6. Loading factors () Loading factors Variable Edsogen Variable method Indicator Loading Factor <--- <--- ,154 8,130 0,000 <--- ,158 8,451 0,000 <--- 0,688 ,157 7,540 0,000 <--- 0,735 ,155 7,916 0,000 <--- 0,525 ,150 6,063 0,000 KB10 <--- 0,722 *KB9 <--- 0,667 ,117 8,280 0,000 KB8 <--- 0,662 ,116 8,217 0,000 KB3 <--- 0,573 ,124 7,115 0,000 KB2 <--- 0,630 ,112 7,828 0,000 KB1 <--- 0,635 ,106 7,880 0,000 Source : Appendix 10 . Description : * standard deviation approaching 0 ( zero ) Based on method determination mark in the model, then variable first model testing This grouped become variable exogenous . xogenous variable. and endogenous variables . ndogenous variable. Variables exogenous is variable whose value determined outside the Endogenous variables are variable whose value determined through equality or from the relationship model formed, including in group variable exogenous is CRS, innovation strategy, capability strategy, while endogenous variable of excellence compete, and performance marketing . The model is said Good when hypothesis model development in a way theoretical supported by empirical data . The results of the SEM analysis are complete can seen in Figure 1512 | P a g e https://dinastipub. org/DIJEFA Vol. No. 2, 2025 Figure 5. SEM analysis results Initial model construct test results presented in Figure 5 is evaluated based on goodness of fit Index, model criteria and mark critical that has data conformity can seen in Table 4. Table 7. Evaluation Criteria Goodness of Fit Index Goodness of fit index Cutt of value Hasil Model Keterangan Chi Square Diharapkan kecil Marginal Fit Significane Probability Ou 0,05 0,000 Marginal Fit Good Fit RMSEA O 0,08 0,122 GFI AGFI CMIN/DF TLI CFI Ou 0,90 Ou 0,90 O 3,00 Ou 0. Ou 0. 0,664 0,614 3,606 Marginal Fit Marginal Fit Marginal Fit Good Fit Good Fit The results of the model testing in Table 7 show that all index Not yet fulfil implied value. Therefore That Revised SEM model was conducted as following . Figure 6. SEM analysis results 1513 | P a g e https://dinastipub. org/DIJEFA Vol. No. 2, 2025 Based on Figure 6 then There is One criteria that meet condition with other criteria in the marginal fit position . Therefore the basic model . efault mode. has fulfill one of criteria goodness of fit so based on parsimony theory model has can accepted and not required For do modification , because can confirmed that modification will produce mark more chi- square In other words, based on parsimony theory, if the base model ( default mode. has been produce at least one criteria then the model is confirmed will produce expected criteria . that results testing This can concluded that this model can accepted in a way Enough good (Ferdinand, 2. and can used For estimate . Based on CFA results of each endogenous construct showed that indicator former variable superiority and performance proven valid and meets criteria goodness fit model. After known description connection between variables study This so furthermore will exposed results testing hypothesis . In case This will served mark coefficient track between variable following significance the results of the hypothesis test in Table 4. 32, as Table 8. Values Path Coefficient and Testing Hypothesis Path Coefficient <--CRS 3,230 0,000 <--CS 2,237 0,000 INNOVATIO <--0. <--KB 5,810 0,000 <--CRS <--CS -1,196 INNOVATIO <--0. 3,330 0,000 Source : Appendix 7 . Variables Information Significant Significant Not Significant Significant Not Significant Not Significant Significant The results of the analysis shown in Table 4. 28 show that the competitive advantage variable has a significant effect on marketing performance. The coefficient value of the Capability Strategy (CS) path is 0. 906 with a positive direction towards marketing performance and a p-value of <0. 05 ( p-value = 0. is obtained. Thus, it means that every time there is an increase in competitive advantage , it will not increase the marketing performance of SMEs. These results provide support for the hypothesis that competitive advantage has a significant effect on the marketing performance of SMEs in Bekasi City. Summary results testing hypothesis served in Table 4. 29, from table the known that from seven the hypothesis proposed in study this , no all in all hypothesis accepted Table 8. Test Results Hypothesis Study Research Hypothesis Information CRS is influential to superiority compete Accepted Positive and Significant Innovation strategy influential to superiority compete Accepted Positive and Significant Capability strategy influential to superiority compete Rejected Not significant CRS is influential to performance marketing Rejected No significant Innovation strategy influential to performance marketing Accepted Positive and Significant Capability strategy influential to performance marketing Not Significant superiority compete influential to performance marketing Accepted Positive and Significant Source : Appendix 7 . No. 1514 | P a g e https://dinastipub. org/DIJEFA Vol. No. 2, 2025 CONCLUSION AND SUGGESTIONS Based on results data analysis then conclusion study among others: CRS is influential to superiority compete in SMEs in Bekasi City. That is show that CRS is capable increase superiority competing SMEs in Bekasi City. Innovation Strategy No influential to superiority competing SMEs in Bekasi City. That is show that the innovation strategies carried out by SMEs are not increase superiority competing SMEs in Bekasi City. Capacity Strategy No influential to superiority competing SMEs in Bekasi City. That is show that The capacity strategy carried out by SMEs is not increase superiority competing SMEs in Bekasi City CRS does not influential to performance marketing of SMEs in Bekasi City. It is show that CRS does not capable increase performance marketing . Strategy innovation influential to performance marketing of SMEs in Bekasi City. It is show that the innovation strategy is carried out UKM improves performance marketing. Capability Strategy does not influential to performance marketing of SMEs in Bekasi City. It is show that Capability of the strategy implemented UKM does not increase performance Advantages compete influential to performance marketing of SMEs in Bekasi City. If the advantages compete the more tall so performance marketing will the more high too. Customer Relationship Strategy, innovation strategy and capability strategy have an influence in a way together to superiority compete . The more good CSR, innovation and capability strategy will the more high also excellence compete . Customer Relationship Strategy, business strategy innovation , capability strategy and excellence compete influential in a way together The same to performance SME marketing in Bekasi City. BIBLIOGRAPHY