<p>Micro, Small, and Medium Enterprises (MSMEs) play an important role in the structure of the Indonesian economy. The study of how entrepreneurial networks influence performance, especially in MSMEs, is still a hot topic discussed and raises big questions for some researchers. This study aimed to examine the factors that affect the performance of MSMEs. In this study, the variables tested were networking and market-sensing capabilities on the performance of MSMEs. The entrepreneurial networks have a positive effect on the company performance. The entrepreneurial networks have a positive effect on the competitive advantage. The competitive advantage has a positive effect on the performance. The market-sensing capability has no positive effect on the performance. The market-sensing capability has a positive effect on the competitive advantage. This means that the higher the market-sensing capability, the higher the competitive advantage. Competitive advantage mediates between entrepreneurial networks and performance and between market-sensing capability and performance.</p><p>Keywords: Networking Capability, Market-Sensing Capability, Performance, MSMEs</p>