<![CDATA[This empirical research aims to determine the effect of entrepreneurial orientation and knowledge management on business performance with competitive advantage as intervening variable. The population in this research is small and medium enterprises in embroidery Aceh’s motifs in Banda Aceh City and Aceh Besar Regency. The sample selection is based on purposive sampling technique. Respondents in this research are small and medium enterprises manager of embroidery Aceh’s motifs which amounted to 257 respondents. The data required for this study are primary data and secondary data, primary data obtained by interviews and distributing questionnaires where each item ranked by methods Summated Likert Scale Rating scale measuring the interval with seven alternative answers. Data analysis used in this research is SPSS. To identify the role of mediating variable fully mediated or partially mediated, it can be implemented to refer to Baron and Kenny opinion (1986) in Ma'ruf (2005). The results of this study show that entrepreneurial orientation and knowledge management has a positive and significant relationship to business performance and competitive advantage partially mediate (partial mediation) effect between the entrepreneurial orientation, knowledge management and business performance. The finding from the study will help SME owner / managers in understanding and can provide empirical data provision benefits in improving the business performance of small embroidery industry with increased Competitive Advantage by growing the orientation attitude Entrepreneurship, and a good Knowledge Management.]]>
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