ABSTRACT : This study aims to explain the role of competitive advantage in mediating the influence of marketorientation on marketing performance. The research was conducted in Denpasar, the number of samples are 50respondents through non-probability sampling. Data were collected using questionnaire and analyzed by pathanalysis. The results show that market orientation has a significant positive effect on competitive advantage,market orientation has a significant positive effect on marketing performance, competitive advantage has asignificant positive effect on marketing performance, and competitive advantage plays a significant positive rolein mediating the effect of market orientation on marketing performance. The implication of this research is toadvise managers of MSME Coffee Shops in Denpasar to always pay attention to the marketing performance byfocusing on market orientation and always increasing competitive advantage.
Keywords -Market Orientation, Competitive Advantage, Marketing Performance.