Intense competition in today's business world has made it increasingly difficult for firms to exist, and survival has become a primary business goal. Some entrepreneurs have struggled to compete, and some have eventually failed; therefore, how firms create and sustain their competitive advantage provides a sound basis for the firms’ existence. This study’s objective is to explore the resources that enhance a sustainable competitive advantage within the context of small and medium enterprises (SMEs) in creative industries. The state of competition within industries is presented using the resource-based view (RBV) and social capital, and we specify three essential competitive determinants: market orientation, collaborative external network, and managerial ties. This study used a questionnaire survey and structural equation modelling to evaluate the conceptual model. We found that market orientation and collaboration external networks can lead to sustainable competitive advantage. In addition, managerial ties as a mediator between market orientation and collaborative external network lead to sustainable competitive advantage