One of the prominent sectors of SMEs in Indonesia is woven fabric sector particularly Sengkang's Silk producer in Wajo Regency, South Sulawesi. Sengkang's Silk has positioned itself as an iconic product that may serves as tourist attraction within the region. However, innovation in this sector is limited particularly in Sengkang's Silk. However, such advantage may not be sustainable in the long run. Our study analyses 219 questionnaire responds from Sengkang's Silk SMEs and analyze whether

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... ation combined with iconic product advantage can improve their marketing performance. Our result indicated that iconic product innovation affects marketing performance positively and significantly. Furthermore, our study found that organizational innovativeness variables can affect the development of iconic product innovation. Our study suggests that, Sengkang's Silk SMEs should focus on developing their organizational innovativeness through product innovativeness, market innovativeness, process innovativeness, behavior innovativeness and strategic innovativeness to improve their iconic product innovation strategy.