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This paper aims to develop a conceptual model showing how the concept of distinctive value positioning (DVP) could be a strategic solution for improving marketing performance in small and medium enterprises (SMEs) in Indonesia.

A survey was conducted among owners and managers of creative SMEs using a structured questionnaire to test the proposed model. Additionally, the sample size included 200 respondents who were analyzed using structural equation modeling with the aid of AMOS 23.

This research used serial mediation to investigate the mediating effect of two concepts in the strategic path to enhance DVP. Channel partner power was incorporated to mediate the relationship between product innovation capability and marketing performance.

Service-dominant logic perspective was enriched with diversity through various analyses. This research further contributed to the field of knowledge by developing a new variable known as DVP. However, it did not extensively explore the various cultural elements in Indonesia that could affect the unique values attached to creative industry products.

DVP was reported as a new concept and showed a significant effect on marketing performance in SMEs.