Purpose: This study aims to determine the test results of the effect of knowledge sharing and management talent on performance and competitive advantage as intervening variables in SMEs in Sidoarjo. Methods: The research method used is a quantitative descriptive method. This research was conducted on 90 respondents with a non-probability sampling technique, Analysis data: using the SEM-PLS3 analysis tool to measure the results of knowledge sharing and talent management on performance and competitive advantage as an intervening variable, Result and discussions: The results of this study explain the role of Knowledge sharing and talent management as very important factors for building HR skills and capacity development to achieve competitive advantage so that the performance of SMEs can survive. This is shown by the influence of knowledge sharing on performance. Management talent has no effect on performance. Knowledge sharing influences competitive advantage. Management talent influences competitive advantage. Knowledge sharing affects performance through competitive advantage. Management talent influences performance through competitive advantage. And competitive advantage has an effect on performance, Conclusion: increasingly dynamic global competition requires potential strength to win the business world competition by understanding self-concept, and the skills used to carry out business activities properly, therefore a strategy of implementing knowledge translation and exchange is needed in human resource development which aims to project and realize interactions between a group or organization in order to develop capacity in providing information and evidence in making decisions so that it can be easy to solve problems.