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 only affects PPA but it had no effects on SBP. PPA became a full mediator betweenandSBP, but it had norelations 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 previousresearch on customer orientation and product innovativeness cultures in specifi