<![CDATA[This study investigates the effect of coopetition strategies on the business performance of small and medium-sized enterprises (SMEs) supporting industrial clusters. The research involved 30 SMEs engaged in metal production processes, selected from a population of 52 companies sharing similar production facilities and expertise. Internal capabilities were measured across four variables: innovation, experience, education, and networking, while coopetition strategies were assessed through marketing network cooperation and production process cooperation. Data were collected using structured questionnaires and analyzed through path analysis. The findings reveal that innovation and networking capabilities significantly enhance business performance both directly and indirectly through coopetition strategies. This study highlights the strategic importance of balancing competition and collaboration among SMEs to strengthen industrial cluster performance. The results offer practical implications for managers seeking to optimize internal capabilities and cooperative strategies within constrained production environments, ultimately contributing to the sustainable development of SME-based industrial clusters.]]>
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