Collaborative Network and Innovation as A Driving Force of Batik SMEs Performance

The aim of this study is to contribute to the literature review, and to the conceptual model of the relationship between the collaborative network on innovation, the relationship between innovation on SMEs performance. The study concerns on the performance of Batik SMEs in Surakarta Indonesia by involving 170 respondents as the research sample. The sampling was done by way of purposive sampling. The study showed that collaborative network has positive effects on the SME's performance and on innovation. Consequently, innovation can positively affect SMEs' performance. The findings highlight the importance for a company to create and to develop innovation and collaborative network to enhance SMEs performance.     Keywords: innovation, collaborative network, SMEs performanc