Purpose – Increasing environmental uncertainty continuous changes and many challenges in the world, especially ASEAN.Small Medium Enterprises (SMEs) striving to stay in the competitive environment and adapt to the rapid development of the environment. This study was conducted in order to know how the market orientation and entrepreneurship orientation, and learning organization have an effect on SMEs innovation development, so as to build a competitive advantage that successfully penetrated ASEAN Economic Community with its culinary business.
Design/methodology/approach – This research is conducted by survey method to SME entrepreneurs engaged in the culinary services industry. The sample is determined by purposive sampling of 100 SMEs culinary entrepreneurs in Depok, West Java.
Findings – There was an influence of market orientation, entrepreneurship orientation and organizational learning to innovation on SMEs culinary industry. The application of market orientation and entrepreneurship has not been optimal yet, in achieving competitive advantage, but they continue to work on organizational learning. With the seriousness then it is expected to be able to experience competing in the ASEAN market.
Research limitations/implications – This research was conducted in the region and the limited sample of SMEs culinary services industry located in Depok City, West Java alone, so that it can not be generalized its findings. The study does not cover other sectors, which also play a vital role in economic development.
Practical implications – The development of the culinary industry requires the support and cooperation between scholars, business and government, and civil society through their respective roles. Such support to achieve competitive advantage can be achieved through creativity activities that foster innovation ability.
Social implications – This study encourages SMEs to become a major driver of creative economic growth. Thus it will potentially create new economic growth, create new jobs, and reduce poverty.
Originality/value – The SMEs competitiveness was developed with market orientation and entrepreneurship through application as a learning organization throughout the course of the business.