Paper Title
The Effect Of External And Internal Environment On Competitive Strategy And Partnership Strategy And Its Implication On The Performance Of Small And Medium Industry (SMI)

Abstract
The objective of research is to investigate the influence of external and internal environment on competitive strategy and partnership strategies and its implications on the performance of Small and Medium Industries (SMI) in the field of handicraft sector in the province of Aceh. The research used descriptive survey and explanatory survey method. The unit of analysis in this study is small industrial enterprises that are involved in handicrafts sector in the province, amounting to as much as 2,314 companies. The number of samples taken are 350 companies. Respondents in this study consisted of 350 persons representing the owner / manager of the company that was chosen as the observation unit. The collected data are analyzed by using Structural Equation Model (SEM) as a Covariance-based Structural Analysis (CSA) by using AMOS software, version 22. The results of descriptive hypothesis testing showed that the external environment, internal environment, competitive strategy, partnership strategy and performance of SMI related to handicraft industrial sector in the province of Aceh are not good yet. Verification of hypothesis testing revealed that the variables of competitive strategy and partnership strategy are considered as full-intervening variables of which it proved that the external environment and internal environment have a direct significant influence on the performance of SMI, but its partial indirect influence is insignificant. The most dominant research variables influencing performance of SMI in order are partnership strategy, external environment, competitive strategy, and internal environment with the total effect of beta coefficience are 0415, 0345, 0.235, and 0.186, respectively Keywords - External Environment, Internal Environment, Competitive Strategy, Partnership Strategy, and Performance.