© 2021. Daryono, Muhammad Noor, Achmad Nurmandi & Aji Ratna Kusuma. This research/review article is distributed under the terms of the Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0). You must give appropriate credit to authors and reference this article if parts of the article are reproduced in any manner. Applicable licensing terms are at https://creativecommons.org/licenses/by-nc-nd/4.0/. The Development of Business Organization through the Effective Network Management. Case Study at SMEs Cluster in Indonesia By Daryono, Muhammad Noor, Achmad Nurmandi & Aji Ratna Kusuma Khon Kaen University Abstract- The purpose of this study is to evaluate the internal and external factors, as well as strategies related to the effectiveness of network management, link with the development of SMEs Cluster. The research location in East Kalimantan Province, was divided into the three categories of clusters, including the Batik, Food and Handicraft, where 351 respondents were selected as using the cluster sampling design, and the data obtained was analysed using structural Equation Modeling. Therefore, the following hypothesis were established; (1) there are relationship between internal factor and the effectiveness of network management. (2), there are relationship between external factor and the effectiveness of network management, and (3), there are relationship between strategy and the effectiveness of network management. This research identified four strategies that ought to be properly implemented, in order to achieve effectiveness, consisting of community and bureaucratic orientation, accounting management, workforce organization and interdependence strategy maintenance. Keywords: organization development, SMEs cluster, network management. GJHSS-H Classification: FOR Code: 369999 TheDevelopmentofBusinessOrganizationthroughtheEffectiveNetworkManagementCaseStudyatSMEsClusterinIndonesia Global Journal of HUMAN-SOCIAL SCIENCE: H Interdisciplinary Volume 21 Issue 7 Version 1.0 Year 2021 Type: Double Blind Peer Reviewed International Research Journal Publisher: Global Journals Online ISSN: 2249-460x & Print ISSN: 0975-587X Strictly as per the compliance and regulations of: