The aim of this study is to analyze how to improve the competitive advantage and performance of small and medium-sized enterprises (SMEs) in North Sumatra through marketing entrepreneurship and architectural innovation capabilities. The type of research is quantitative research. The study focused on UMKM in North Sumatra who offered the following categories of products: handicrafts, food and beverages, coffee shops, bakeries, fashion, clothing, and services. The research population consists of all 84,758 UMKMs in North Sumatra. As for the sample number ranging between 100 and 200, or at least 5 times the number of variable indicators, when using Structural Equation Modeling (SEM). The entire sample size for stage 1 was 102 SME samples from Medan city. To analyze the research data, the study used SmartPLS (Partial Least Squares). The findings of this study show that market orientation (MO) has a negative and insignificant impact on SME performance from data processing and hypothesis testing results. Entrepreneurship Marketing Architecture Innovation Capacity (EMAIC) has a beneficial and significant impact on Competitive Advantage (CA). The ability of Enterprise Marketing Architectures (EMAC) to innovate has a significant and beneficial impact on their success. Entrepreneurship orientation (EO) provides tangible proof of SME success through competitive advantage (CA). Corporate orientation has no direct impact on SME performance through competitiveness (CA).

In addition to implementing the hybrid business strategy, Small Medium Enterprises (SMEs) in Bali also accommodate the values of local wisdom in Bali. One of the values of local wisdom in Bali is called Tri kaya Parisudha (TKP). The aim of this study is to determine the effect of service strategies based on TKP and social media promotion on business value and the impact on SME business performance in SMEs. AMOS-based Structural Equation Modeling (SEM) is the analysis technique used to examine the hypotheses in this study using a sample consists of 105 people. The results show that (1) TKP-based service strategy has a positive and significant effect on business performance; (2) Social media promotion has a positive and significant effect on business performance; (3) TKP-based service strategy has a positive and significant effect on business value; (4) social media promotion has a positive and significant effect on business value; (5) business value has a positive and significant effect on business performance. The theoretical implications from this research is that the application of service strategy based on TKP and social media promotion is a business strategy that is very important to improve the value of the businesses and to improve their performance.