Performance Enhancement Strategy through Business Environment, Product Innovation and Competitive Advantages

This research tries to examine the influence of business environment, product innovation and competitive advantage on SME performance. The type of research is survey. The population in this study is the overall SMEs in South Sulawesi. The sampling technique is simple random sampling with the number of respondents is 300 respondents Statistical technique used is Path Analysis The result of research indicates that: (1) there is positive influence of business environment to product innovation, (2) there is positive influence of business environment to competitive advantage, (3) there is positive effect of product innovation on SME performance, (4) there is a positive influence of competitive advantage on SME performance. The practical implication is that it should continue to improve its business orientation by making clearer vision and business goals by developing longer-term and clearer business plans.