Research aim: Examining the influence of training and work motivation on the performance of food processing SMEs, particularly in Tarakan, with an entrepreneurial orientation as a mediating mechanism based on the Resource-Based View (RBV) perspective. Design/Methods/Approach: This study uses a quantitative approach based on questionnaires for 25.4% of SMEs selected using purposive sampling. The data analyzed using SEM-PLS. Research Finding: The study found that training, as a human resource (HR) investment, does not directly enhance performance. Certain mechanisms are required for HR investment to have a tangible impact on performance. Theoretical contribution/Originality: This study enriches the RBV by explaining how human resources are transformed into valuable capabilities that impact performance when placing entrepreneurial orientation as the main mediator. Practitioner/Policy implication: Recommends more relevant and continuous training, along with efforts to boost work motivation to enhance MSME competitiveness. Research limitation: Focus is limited to food-processing MSMEs in Tarakan; the quantitative approach may not fully capture deeper contextual insights.
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