Abstract:
SMEs sector showed a dominant contribution to the gross domestic product. SMEs have been able to demonstrate the
contribution and the identity as the main pillar to supporting the national economy to help drive the economic recovery process in
Indonesia. By improving and enhancing business performance of SMEs, it is expected that the economy would be able to run faster,
more advanced, and drive economic growth better in the future. Several factors affect the business performance of SMEs is sustainable
competitiveness, organizational learning, and entrepreneurial orientation. The study examines the influence of entrepreneurial
orientation on organizational learning and sustainable competitiveness against changes in business performance. Population in this
study is SMEs which processing of cassava into tapein Bondowoso Region, Indonesia. The data collected consists of primary data (based
on field surveys). Respondents are firm leaders (the owner or manager). Each SME will be represented by one respondent. The analysis
technique used structural equation model to test the hypotheses. The study found an entrepreneurial orientation influence
organizational learning; entrepreneurial orientation and organizational learning have an effect and a significant positive relationship to
sustainable competitiveness, and sustainable competitiveness influence business performance of tape SMEs.
