Abstract

Collaborative Networks give an opportunity to Small and Medium Enterprises to conduct the learning process,transfer knowledge and technology, and increase organizational capacity as a pre-requisite for sustainableinnovation development. The aim of this study is to discover the relationships between Collaborative Networksand Innovation, between Innovation and Competitiveness, and between Collaborative Networks andCompetitiveness. This study used the Structural Equation Modelling with Partial Least Square as the tool foranalysis. Forty respondents were interviewed. The respondents were food-processing Small and MediumEnterprises which had innovations and were located in Bogor, Sukabumi, and Bandung District.The results ofthe study showed that Collaborative Networks influence innovation but do not have significant effect onsustainable competitiveness, whereas the innovations done by Small and Medium Food Processing Enterprises inWest Java will increase sustainable competitiveness.

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