Sirajuddin Omsa, Ubud Salim, Djumahir, Mintarti Rahayu
The purpose of this research is to formulate empirical models that describe the relationship between the industrial competitive pressure, the capability of management, the competitive strategy, and the company performance. To achieve the objectives, the data were collected by employing survey and interview method. The data had been collected were analyzed by using partial least squares (PLS). The result shows that the industrial competitive pressures have an insignificant- negative effect on both competitive strategy and company performance, but management capability has a significant-positive effect on the competitive strategy and the company performance. In addition, the result shows that there is a significant-positive effect of competitive strategy on company performance. Those results suggest that the owners of SMEs wooden furniture industry in Pasuruan city should consider industrial competitive pressure and their management capability when they implement competitive strategy in order to reach their desired company performance in the future.
Department of Management Science, Faculty of Economics and Business, Brawijaya University, Malang, Indonesia
