This study attempts to explore the most significant factors of the OEC construct which contributes to improve the performance of small and medium enterprises (SMEs). The OEC (Organizational Expansion Competency) construct is based on four sub-factors, i.e. Domestic network quality, International network quality, Capabilities of company and Access to resources. A case study analysis of local SMEs from manufacturing sector that operates in Melaka was conducted to examine the framework which was developed for this study to improve performance. A sample of 105 entrepreneurs (respondents) of SMEs was surveyed using a structured questionnaire as an instrument. The result shows the most important factors towards improving performance based on statistical methods to analyze the data. International network quality was the most significant factor, followed by Capabilities of company and Access to resources that contribute to the performance of SMEs, while Domestic network quality of SMEs were relatively not significant but still related positively to the performance of SMEs in Melaka.