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Abstract Objective: - This study attempts to overcome two problems. Firstly, expand the resource-based view by developing a model of market orientation relationships, CRM capabilities, and business performance. Secondly, examine market orientation relationships in CRM and business performance. Design / methodology: Data were collected from small and medium hotel businesses in Bali. To collect data, a questionnaire survey was conducted. The hypothesis was tested and analyzed by using structural equation modeling techniques. Findings: The results support the hypothesis of the effect of market orientation of CRM on business performance, market orientation on business performance, as well as the influence of CRM on business performance. Further results showed that market orientation and CRM capabilities proved to be a significant driving force of business performance. Practical implications: Studies have important implications for managers and policy makers. Research provides a structural model that hotel managers can use to drive performance. The study underlines the importance of market orientation to improve CRM capabilities and business performance of the hotel sector in Bali. Managers may improve hotel business performance more effectively and efficiently by utilizing strategic market orientation resources and CRM capabilities, and revealing greater scope for future research.