With a focus on small religion-based businesses in Indonesia, this research examines whether marketing innovativeness, customers responsiveness and competitors′ responsiveness can improve marketing performance. A conceptual model on the correlation of these three variables with religio-centric positional advantage and marketing performance is examined by using structural equation model. For this purpose 335 small businesses of Islamic Fashion had been studied using purposive sampling from 11 regencies/cities in Central Java (Indonesia). The results showed that (1) small companies in these market segments based on religion is likely to have better marketing performance when they have the Religio-centric positional advantage, (2) The increase in marketing innovativeness, CuR and CoR is required to improve and maintain religio-centric positional advantage, and (3) religio-centric positional advantage is definitely a mediator in the correlation of marketing innovativeness, customer responsiveness and competitors responsiveness with marketing performance.
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