The Impact of Human Resource Ability and Market Orientation on Business Performance and Competitive Advantage Case Study of Small And Micro Industry of Wood Craft in Gianyar Regency

The aims of this research is to: (1) analyze the impact of human resource ability and market orientation on business performance and competitive advantage; (2) analyze the impact business performance on competitive advantage. Data were collected using questionnaires, interviews, observations, and literature studies. The research model was built using the structural equation model and analyzed with smartPLS-3 software. The results of the analysis show that (1) there is a positive and significant impact of human resource ability and market orientation on business performance and competitive advantage; (2) there is a positive and significant influence of business performance on competitive advantage. The suggestions that can be given are (1) to have performance and competitive advantage, micro and small business owners in Gianyar Regency must be innovative so that the products marketed are in accordance with customer needs, in addition to improving human resources by conducting management training in business management; (2) stakeholders, such as government and academics, should assist the business owners in providing training; (3) further research needs to follow up the findings of this research by adding other variables included in the model, such as the role of the government.