THE EFFECT OF ORGANIZATION LEARNING CAPABILITY AND ORGANIZATIONAL INNOVATION ON COMPETITIVE ADVANTAGE AND BUSINESS PERFORMANCE

Entering the industrial revolution era 4.0, MSMEs are required to have products with special characteristics, unique and different than other competitors. Therefore, MSMEs can develop its local wisdom as Competitive Advantage and create a market with its own characteristics. So that competition in this case is no longer related to "excellence" but "related to efforts to create and maintain product uniqueness". To be competitive does not mean to win by eliminating competitors, but because of the element of difference and worthy of juxtaposition without turning off the opponent's product. The sampling technique uses Convenience Sampling. The samples are 300 MSMEs. Data analysis uses the Structural Equation Model program. The results of this research indicate Organizational Learning Capability and Organizational Innovation have a positive and significant effect on the Competitive Advantage and Competitive Advantage has a positive and significant effect on the Business Performance.