dc.description.abstract | Small and Medium Enterprises (SMEs) are businesses that become one factor of Indonesian economic advancement that needed to improve their competitiveness in order to compete with the ASEAN Economic Community. This condition made SMEs to become the learning organization in order to survive in the competition. This study used the learning organization theory of Senge (2006), which were five disciplines/pillars: mental models, systems thinking, shared vision, personal mastery and team learning. This study aims to analyze to what extent the implementation of learning organization in the SMEs by testing the effect of the learning organization to the performance and the competitiveness improvement. This study was conducted in Bekasi involving 50 respondents from 25 SMEs. Purposive sampling technique was used in this study. Fifty respondents which were the business owners, workers and related department were chosen from five clusters. Ishikawa Diagram and Structural Equation Model (SEM) based on SMART Partial Least Square with four laten variable which were competence, learning organization, performance and competitiveness were used in this study to analyze the data. The result of the analysis showed that (1) directly competence didn’t affect significantly to the performance but indirect relationship of competence and performance through learning organization were significant, (2) competence had positive effect on learning organization, (3) learning organization had positive effect on performance, (4) learning organization didn’t affect significantly on competitiveness but indirectly affecting significantly on through performance, and (5) Performance had positive effect on competitiveness. The low competitiveness of the SME category of human resources and methods. The five clusters studied were cluster doll, convection, santadoges (slipper, bag, wallet, belt), handycraft, and embroider have limited human resources. Although low competence but it have high performance to produce quality products with online marketing systems and overseas marketing. The learning organization implementation by team learning an increase in knowledge, skills and production capabilities so as achieve of the organization vision. Although the learning organization indirectly affecting on competitiveness but improve competitiveness on through performance. | id |