The objective of this study is to examine and analyze the role of competitive advantage in mediating the relationship of the influence of organizational capabilities and strategic management accounting (SMA) on organizational performance (OP). The hypotheses testing used partial least square (PLS). We conducted an empirical study to 108 companies in Indonesia. The findings indicated competitive advantage could bring impact by mediation on organizational performance (OP). In this study, found that competitive advantage used in Organizational Capability (OC) and Strategic Management Accounting (SMA) could influence organizational performance (OP). Surprisingly, the influence of organizational capabilities provides a full mediating effect on improvement in organizational performance (OP) through Competitive Advantage (CA), while strategic management accounting (SMA) on organizational performance (OP) could provide a partial mediating role on improvement of organizational performance through competitive advantage.In the previous study are were several differences in the result of the study, namely from the study conducted by Baker and Sinkula (1999) and Jiménez-Jimenez, et al (2008), suggesting that market orientation did not significantly influence organizational performance.Previous study showed that Organizational Capabilities influenced organizational performance (Ah Lay and Jusoh 2017;Henri 2006). Meanwhile, some previous studies found market orientation was one indicator of organizational capabilities did not influence company performance. (Baker and Sinkula 1999;Jiménez-Jimenez, et al 2008).