The purpose of this research is to analyze the influence of strategic planning and business innovation on competitive advantage and and business performance in small industry in East Nusa Tenggara Province. The formulation of this research problem is how the role of strategic planning and innovation in improving business performance.
The population of this research is furniture industry which has been recorded in Industry and Trade Office of NTT Province amounting to 276 furniture industry while the sample is owner of furniture industry with the number of 136 respondents spread in 7 (seven) Regency / City in NTT Province. Data from this research was taken using questioner and interview then the data was analyzed using Structural Equation Modeling (SEM) method with Amos 22.0
The analysis of the five hypotheses tested in this research yielded 3 (three) of the accepted hypotheses because they have Critical Ratio (CR) value> 1.96 with probability (P) 0.05. The results of this study show that strategic planning and business innovation have a positive and significant impact on competitive advantage, strategic planning does not have a positive and significant impact on business performance, business innovation has a negative but significant impact on business performance, and competitive advantage positively affects business performance
