A region’s economic growth depends on the development policies based on the wealth determined from the potential of human, institutional and local resources. Furthermore, tThe development needs to link primary sectors with future processing to increase agricultural products’ added value and marketing competitiveness. This study develops an innovative marketing model in agricultural products for small-scale farmers through village-owned enterprises (BUMDes) and micro, small, and medium enterprises (MSMEs) empowerment in coastal areas. One way of realizing this program is by building agribusiness and agro-industry partnerships that are well-planned and associated with other economic sectors' development. The partnership involves community economic institutions, including BUMDes, credit institutions, farmer entrepreneurs, as well as Micro, Small, and Medium Enterprises. BUMDes is a rural-based business with a legal entity managed by the village government to create added value for the community’s agricultural products. Together with MSMEs, these businesses need to support the agribusiness subsystem's development, including trading in agricultural production facilities and business activities. Furthermore, they need to promote agricultural production, support services, a source of market information for rural communities, the main actors of appropriate technology for agricultural products.

Business performance is one of the entrepreneurial behavior benchmarks. Small, and Medium Enterprises (SMEs) are required to have dynamic capabilities and strategies that can seize opportunities and improve the market. The aim of this paper is to analyze the effect of adaptability and entrepreneurial orientation on business performance through innovation as mediation. Based on interviews and questionnaires distributed to 115 SMEs in coastal areas. The research results show that adaptability and entrepreneurial orientation have effects on innovation. Adaptability and entrepreneurial orientation have no effects on business performance. Innovation has effects on business performance. Adaptability and entrepreneurial orientation have effects on business performance through innovation as mediation. This study enriches the current literature by providing a contribution and insights to understanding how Resources Based View (RBV) theory affects business performance and innovation on SMEs in coastal areas in Indonesia. The implications of this study on entrepreneurship orientation in SMEs will help to increase resources for innovation. This emphasizes how the RBV approach used in this research helps improve business efficiency by leveraging existing capital in microbusinesses into a source of excellence. The government is working on policies to enhance the efficiency of SMEs in Indonesia.