Partnership Strategy for Competing Globally

The purposes of this research are (1) to find out the performance of food agro industry micro- and small-scale enterprises (MSE) in Gianyar regency; (2) to examine the contribution of partnership strategy to improving performance of MSEs, and (3) to identify the partnership program needed by MSEs. The number of respondents was 176 respondents; the data were collected using observation, interview, and survey. Data were then analyzed using descriptive statistics, structural equation modeling (SEM). The results showed that: (1) the performance of MSEs could be categorized as low. (2) the partnership strategy had a positif and significant contribution to performance, (3) the partnership programs needed by MSEs included market access, capital acces, training in the fields of management. The following recommendation to improve performance are made: (1) MSEs should improve their business performance through partnership building, (2) businessmen should be willing to assist MSEs in market and capital access, (3) financial institutions both private government should provide easier access to venture capital loans and the government should take part in promoting MSEs' products through special events, and (4) universities should provide training in the fields of management and finally (5) for the sake of science development, future studies should develop partnership model appropriate for food agro-industry MSEs in Gianyar regency.