BIULDING SMALL AND MEDIUM ENTERPRES BUSINESS PERFORMANCE

Abstract

It is based on research by three basic problem encourage the importance of this investigation are phenomena business of small and medium enterprises or businesses in the Banten Province, the gap of research results, and the recommendations from the researchers previous to advanced research.The purpose to be achieved of this study is to find the influence of market orientation, organizational learning, innovation and competitive advantage on business performance at small and medium-sized companies in the Banten Province. Research methodology used is the descriptive and causality methods. Samples size to this research is 180 entrepreneur in the Banten Province. The method of analysis that is used is a structural equation model (SEM). Based on the results of the analysis ,Competitive advantage proven to increase when SME’s in the Banten Province do innovation that based local capabilities.Similarly innovation that based local capabilities it can be formed when SME’shave start oriented in the market the objective and always do organization learning.When competitive advantage has owned, so SME’s the Banten Province would increase performance their business, so that the economic growth in the Banten Province not inferior to economic growth in neighbor country. The dominant factor affecting business performance of SMES in the Banten Province is how far the SME’s are able to have a competitive advantage. Competitive advantage can be gained if SME’s are able to innovate based on a local capabilities