Strategic Management in Small Medium Enterprises: Indonesian Case

Managerial Performance in small medium enterprises (SMEs) is always questioned in the Globalization era. The aim of this study was to get an empirical evidence concerning management strategic in the SMEs, whether using internal and external business environmental scanning when formulating strategy or implementing the strategy in order to improve their managerial performance. Giving questionnaires to 90 directors and managers of the SMEs the study measured the dimensions concerning internal and external business environment, strategy formulation, and strategy implementation, in order to achieve the managerial performance. Using path analysis and two research models the data were analyzed in order to prove the effect of the internal and external business environment, and the strategy formulation on achieving managerial performance, moderated by the strategy implementation. The study found that partially the internal or external business environment, strategy formulation, or strategy implementation positively significant affected the managerial performance. In affecting the managerial performance, strategy formulation plays the biggest role then the strategy implementation, internal business environment, and the external business environment. Simultaneously internal and external business environment, strategy formulation, and strategy implementation significant affected managerial performance. In order to achieve the managerial performance the directors and managers of the SMEs used internal business environment. They rely on only internal business environment and strategy implementation in achieving managerial performance.