Abstract

The increasingly dynamic market conditions and competition among companies encourage business owners, including small and medium enterprises (SMEs) owners in Indonesia and in other countries to understand how SMEs can be maintained or enhanced their performances. In order to compete, strategic and policy management experts encourage companies, including SMEs to apply strategic management practices. This study aims to measure how strong the influence of the implementation of strategic management practices on the performance of SMEs in Makassar, especially the performance associated with sales turnover, Break Even Point (BEP), and profit. This research uses quantitative data with primary data source through interview process and questionnaire. The interview process was conducted with the head of the small and medium enterprises (UKM) in Makassar, whereas questionnaires were distributed directly to 178 respondents by the survey officer. Of the 178 questionnaires distributed to the respondents, 158 of them (88.76%) were eligible to be processed and analyzed. The results show that the strategic management practices such as strategic planning, strategic execution, and strategic evaluation have a positive and significant impact on sales turnover, BEP achievement, and profits of SMEs, especially in medium-sized of enterprises. But the level of education does not serve as an important factor in moderating these strategic management practices against sales turnover, BEP and profits. The study also shows that the determination of mission and strategic formulation (part of strategic management practices) have no significant effect on sales turnover, BEP and profits. The results of this research are expected to contribute both to the academic community and to business actors, especially managers and/or owners of SMEs in Makassar. Another practical contribution is to provide inputs to policy makers such as Dinas Koperasi and UMKM Makassar, in order to develop the quality of SMEs to remain competitive and still exist in an increasingly dynamic and competitive market. Keywords: Strategic planning, sales turnover, break even point (BEP), profit

Full Text
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