ABSTRACT

SMEs are demanded to be sensitive to the rapid changes in technology. These changes can be anticipated with an understanding of the concept of market-based theory and resource-based theory. This study is aimed at analyzing the influence of information technology, knowledge sharing, and entrepreneurial orientation on competitiveness and SME business performance. This study used an explanatory research design. The samples were 115 SMEs selected randomly. Data were analyzed using SEM-PLS. Based on the data analysis result, it can be concluded that information technology, knowledge sharing, and entrepreneurial orientation have influence on competitiveness and business performance. The result also reveals that information technology and competitiveness will not be optimal without an entrepreneurial orientation of SMEs and that competitiveness can boost SME business performance.