Effective Business Strategy: Key to Winning Business Competition in Industrial Estate

Abstract

Global competition requires high speed, accuracy, creativity and consistency to win business through strengthening optimal competitiveness. Choosing the right business strategy create effective business achievements to be able to compete in the face of uncertain and turbulence economic conditions. This study empirically investigates important role of human capital, infrastructure, supply chain, and technology on company's business strategy in industrial estate and its impact on strengthening competitiveness of manufacturing industry. Authors conducted survey of companies in industrial estate to test hypotheses and apply survey analysis techniques using structural equation modeling. Results of this study concluded that human capital, infrastructure, supply chain, and technology have positive influence on business strategies and have positive impact on competitiveness of manufacturing industries, especially those located in industrial estates. In addition, importance of choosing right business strategy greatly determines how much this business has superior competitiveness compared to its business competitors. This research is expected to be used as suggestion and reference for business units and manufacturing industries to be used as one of considerations in the development of companies in industrial estates that are being developed widely, especially outside Java by government to get best competitiveness. Keywords—business strategy, competitiveness, supply chain, human capital, industrial estate