THE ROLE OF HUMAN RESOURCE COMPETENCY ON THE PERFORMANCE OF SMEs IN ENHANCING COMPETITIVE ADVANTAGES A STUDY OF ENDEK CRAFTS IN KLUNGKUNG REGENCY BALI PROVINCE

THE ROLE OF HUMAN RESOURCE COMPETENCY ON THE PERFORMANCE OF SMEs IN ENHANCING COMPETITIVE ADVANTAGES: A STUDY OF ENDEK CRAFTS IN KLUNGKUNG REGENCY, BALI PROVINCE I Made Wardana Faculty of Economics and Business, Udayana University, Denpasar, Bali, Indonesia wardana@unud.ac.id I Wayan Mudiartha Utama Faculty of Economics and Business, Udayana University, Denpasar, Bali, Indonesia mudiartha_utama@yahoo.com Abstract SMEs has been proven to secure the Indonesian economy when faced with shocks in 1998. SMEs as one business unit that is very potent in contributing to the welfare of society because it is able to absorb labor beyond the ability of large-scale business. This study aims to provide a solution to strengthening the competitiveness of SMEs Endek Crafts in Klungkung regency, Bali Province. Efforts to strengthen business performance and competitive advantage based on strengthening the quality of human resources through increased competence consisting of knowledge, skills, and abilities. The research unit is SME Crafts Endek in Klungkung Regency, Bali Province, amounting to 43 pieces. The sample set in this research is 43 respondents (sample saturated). The respondent or observation unit in this research is the owner of UKM. The sampling technique in this research is by applying the simple random sampling method. Data were analyzed using Structural Equation Modeling (SEM), with Partial Least Square (PLS) approach through Smart PLS software application program. The finding of this research is that the knowledge and skill, of competence have no significant effect on business performance. While abilities have a positive and significant impact on business performance and business performance have a positive and significant impact on competitive advantage. This finding can provide information that knowledge and skills possessed by SME entrepreneurs are not able to International Journal of Economics, Commerce and Management, United Kingdom Licensed under Creative Common Page 201 provide stimulus to improve the performance of SMEs business and SME business performance provides a stimulus to increase competitiveness. The recommendation given to SMEs is to improve Knowledge and skill of SMEs so as to improve performance and competitive advantage Keywords: Dimension competence, business performance, competitive advantage, SMEs