The purpose of this study is to prove and analyze the effect of product innovation on customer satisfaction, the effect of product quality on customer satisfaction, the influence of Customer Relationship management on customer satisfaction, the influence of product innovation on competitive advantage, the influence of product quality on competitive advantage, the influence of Customer Relationship management on Excellence competitive, the effect of product innovation on performance, the effect of product quality on performance, the influence of Customer Relationship management on performance, the effect of satisfaction on competitive advantage, the effect of competitive advantage on performance, the effect of satisfaction on performance on the Micro Small and Medium Enterprises in the Craft Industry Sector in East Kalimantan. This study uses survey techniques by distributing questionnaires, then the data or information obtained is processed by statistical methods using the PLS Warp software. The data analysis method uses PLS (Partial Least Square). The number of questionnaires distributed as many as 320 respondents according to the number of samples in this study with the process of taking a simple random sampling data. The results showed that: Product innovation had no significant negative effect on customer satisfaction, product quality had a significant positive effect on customer satisfaction, CRM had a significant positive effect on customer satisfaction, product innovation had no significant negative effect on competitive advantage, product quality had a significant positive effect on excellence competitive, CRM has a significant positive effect on competitive advantage, product innovation has a significant positive effect on performance, product quality has a significant positive effect on performance, CRM has no significant positive effect on performance, satisfaction has a significant positive effect on competitive advantage, competitive advantage has a significant positive effect on performance , Satisfaction has a significant positive effect on performance in the Micro, Small and Medium Enterprises, Craft Products Category in East Kalimantan. Keywords: Product Innovation, Product Quality, Customer Relationship Management, Competitive Advantages, Satisfaction, Performance