ABSTRACT: The purpose of this studyis to analyze networking capabilities in an effort to improve the performance of the creative industry with market orientation owned by the Indonesian drum jimbeblitar. The research sample was 54 JimbeBlitar drum craftsmen (SMEs) who exported. Analysis tools used Structural Equation Modeling (SEM), with Partial Least Squares (PLS).The results of the study reveal that the relationship skill indicator is the most important indicator in forming networking, while the product performance indicator is the most important indicator in shaping the creative industry’s performance.Market orientationcannot have any effect oncreative industry performance, howevermarket orientationgive effect to networkingandnetworkinggive effect tothe performance of the jimbe drum creative industry in Blitar Indonesia. Networking is able to mediate the influence of market orientation oncreative industry performance
Keywords: Market Orientation,Networking, SME Performance, Creative Economy