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The purpose of this study is to analyze the SMEs performance improvement model by identifying and analyzing product innovations, adaptability environment, competitive advantage that includes the capabilities of human resources, capabilities new product development, production and operating capabilities. level of competence which consists of Knowledge, Skills and Abilities that are owned by convection craftsman in the city of Bekasi. In addition, it examines the effect of product innovation, adaptability HR environment and competence towards competitive advantage and performance SME’s in Bekasi City. The results showed that the overall results Respondents' answers indicate that environmental adaptability at MSE convection has good judgment. This is proven by the answers some respondents who answered strongly agreed. Means that everything is perceived, perceived by respondents about environmental adaptability in Convection MSE is optimal. There is a good HR competency at SME’s convection can be shown by the presence of several things perceived, experienced, felt and thought by craftsmen. Influential product innovation positive towards the competitive advantage of SME’s. Environmental adaptability positive effect on the competitive advantage of SME’s. Competency factor HR had a positive effect on the competitive advantage of SME’s. Adaptability the environment had a positive effect on performance. Environmental adaptability positive effect on the performance of SME’s. HR competency factors positive effect on the performance of SME’s. Competitive advantage influences positive on the performance of SME’s
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