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This study aims to determine the effect of innovation and entrepreneurial orientation on competitive advantage and sales performance. The research method is quantitative and the population in this study is SMEs owner in Tangerang, with a sample of about 210 SMEs owners. The respondents were determined using a simple random sampling technique and data analyzing by SEM (Structural Equation Model) with SmartPLS version 3.0 software as a statistical tool. Research data obtained by distributing online questionnaires. Based on the results of data analysis and can be concluded that entrepreneurial orientation has a positive and significant effect on competitiveness and sales performance, innovation has a positive and significant effect on competitive advantage and sales performance. Competitiveness has a positive and significant effect on sales performance.The novelty of this research is a model of the relationship between innovation variables, entrepreneurial orientation on competitive advantage and sales performance on SMEs in Indonesia
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