The role of environmental uncertainty, competitive strategy, and operation strategy to achieve competitive advantage: the case of east java manufacturing SMEs

This research has several main objectives as follows: (1). Explore how SMEs develop strategies based on strengths, weaknesses, opportunities and challenges. (2). Explore the various efforts of SMEs to anticipate the uncertainty of the business environment. (3). Exploring SMEs' efforts to formulate competitive strategies. (4). Explores how environmental uncertainty influences the choice of competitive strategy of SMEs. (5). Explores the efforts of SMEs to formulate operational strategy. (6). Explore how competitive strategies affect SME operational strategies. (7). Explores how competitive strategy and operating strategy affect the business performance of SMEs. This study uses a descriptive research approach that seeks to identify and mapping the potential and characteristic od SMEs in Surabaya and its surroundings (Sidoarjo, Gresik) with the aim to obtain a picture as accurate and as detailed as possible characteristics of potential small and medium enterprises\tlocated\tin\tSurabaya\tand surrounding. Based on the phenomenon of findings in this research, there are several things that can be underlined: Uncertainty of the business environment does not affect the company's business strategy. In conducting its business strategy, SMEs usually use the following strategies: (1). Concerning the development of skills to respond to opportunities created by companies that are in the first market. What often happens is many imitators repair or modify the goods and services to create higher value for the buyer. If so, entrepreneurs need to move their competitiveness to other market segments by denigrating the small market segment that big companies do not have a chance. (2). Changes in product, market or industry characteristics based on innovation. This strategy is done by changing existing products and services, for example changing the benefits, values, and other economic characteristics.