A small and medium enterprise (UKM) has been role actively in a variety of economic development within a country, not only in Indonesia, but also in other developing countries. UKM requires a knowledge management model (Tacit Knowledge) and the excellent quality of its products (Sustainable Competitive Advantage) which appropriate for UKM. Thus, the aim of this research is to determine how the effect of knowledge management models that are used towards the sustainable competitive of excellent products that will be conducted in Benette Art Shop, Malang, East Java. Creating a competitive edge through which Tacit Knowledge Management and Sustainable Competitive Advantage Knowledge in ukm. A Knowledge Management Model is Tacit Knowledge is used will be very important effect on ukm because of the use of proper models of knowledge management, sustainable competitive advantage of products made to run smoothly and provide added value for ukm Benette Art Shop. The aim of this research is to analyze the effect of Tacit Knowledge on the results of the questionnaire which was conducted by using SEM Partial Least Square tools software (PLS). The results of data processing based on PLS software noted that tacit knowledge does not affect the sustainable competitive of excellent products. It could be seen from the T-statistic that shows the value of the T-Calculate < T-Table (1.343849 < 2.365). Exogenous experience factors and the working environment influence towards tacit knowledge, while rare affects on sustainable competitive of excellent products. Personal Interaction, Community, Situation, Transfer Knowledge, Target Oriented,and informal have no effect on Tacit Knowledge and Uniqueness, Valuable, Non-Substituable, In-imitable have no effect on sustainable competitive of excellent products. The writer proposes suggestion for UKM, by developing more exogenous factors of tacit knowledge and sustainable competitive of excellent products, so that UKM can create excellent products and compete with their competitors. |