<![CDATA[The purpose of this study was to determine the effect of HR competence on Micro, Small and Medium Enterprises in Bulungan Regency. The method used is the quantitative method, with a total of 160 respondents. Data collection was in the form of a questionnaire, the data analysis technique used in this study was SPSS 23 andstructural equation modelling (SEM). Based on the instrument test on the HR Competency, Innovation and Competitive Advantage variables it is declared valid and reliable, because it has a correlation value above 0.3, it also has aCronbach alphagreater than 0.6. The results of the study show that HR competence has a significant positive effect on competitive advantage and innovation, but innovation has a positive but not significant effect on competitive advantage. HR competence and innovation variables affect the variation of data on competitive advantage variables by 0.91 or 91%, the remaining 9% is influenced by other factors]]>
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