Building Strategic Competitiveness of UMKM in South Sulawesi Through Strategic Leadership, Innovation Process, Entrepreneurial Orientation and Business Performance (Typology Miles & Snow and Quantitative Model Typology Analysis)

This study aims to formulate the strategic competitiveness of UMKM by prioritizing the opportunities and resources that have to fix all activities of UMKM by formulating and setting long-term goals. This study also aims to test how much influence the strategic leadership, innovation process, and entrepreneurial orientation to business performance. The research was conducted in Makassar, Maros, Palopo Pare-Pare, Bone, Wajo and Gowa which had more UMKM compared to other areas in South Sulawesi with 189 samples. This type of research problem directs the strategic decision to UMKM. The managerial strategic decision of this research is within the range of Miles & Snow's typology analysis. This research also uses Structural Equation Model analysis technique to test the variable that can support the strategic competitiveness of UMKM. The findings of this study indicate that the appropriate strategy for South Sulawesi UMKM is prospectors strategy. The result of the statistical analysis shows that innovation variable has no significant effect to the performance of UMKM business. The limitation of this research is the absence of specific strategic decisions in the field of UMKM business, so it can be a reference for researchers in the future.