Competitive Strategy Formulation among Small Manufacturing Firms: A Multiple Case Study from an Emerging Regional Economy in Indonesia
DOI:
https://doi.org/10.61194/economics.v3i4.1125Keywords:
Manufacturing SMES, Competitive Strategy, Product Differentiation, Resource-Based View, Dynamic Capabilities, Market Segmentation', IndonesiaAbstract
Small manufacturing enterprises play a significant role in regional economic development but face increasing pressure from globalization, technological change, and evolving customer expectations. This study examines how competitive strategies are formulated by small manufacturing firms in Makassar, Indonesia, focusing on business vision, strategic decision-making, market segmentation, competitive positioning, and sustainable competitive advantage. A qualitative multiple case study approach was used, with data collected through semi-structured interviews with ten key informants—business owners, managers, representatives of the Makassar Industrial Estate (KIMA), and Department of Industry officials—supplemented by documentary analysis and observation. Data were analyzed thematically through open, axial, and selective coding, strengthened by triangulation and member checking. Findings show that competitive strategy formulation is driven mainly by the owner's business vision, product quality, managerial experience, and market segmentation. Rather than competing on price, firms pursued quality-based differentiation through superior materials, consistency, and customer trust. Segmenting retail and project customers supported targeted marketing, while digital branding expanded market reach. Competitive advantage emerged from alignment between strategic positioning, capabilities, and adaptive decisions. This study integrates Porter's Competitive Strategy, the Resource-Based View, and Dynamic Capability Theory, offering practical guidance for strengthening SME manufacturing competitiveness through quality, capability development, and digital transformation.
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