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. Innovation can be done well, if SME’s are already market-oriented in formulating their business
strategies.