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The increasing number of production values due to an increase of batik exports to various countries as well as the national exports of batik would certainly help in generating foreign exchange. Batik industry is a culture and tradition based industry in which its raw materials is available in the country. In addition, it also has cultural value and helped absorb quite a lot of labor with owned some special skills. The aim of this study was to determine how the organizational culture variables intervened in the relationship between the human capital variable with competitive advantage variable, so that batik small industry entrepreneur would be able to formulate and choose the right strategy to win the competition by managing its human capital well. This study used primary data in the form of questionnaires distributed to 200 respondents. The data obtained from the questionnaire were analyzed using Classic Assumption Test, Multiple Linear Regression and hypothesis testing (f-test and t-test) with significance level of &