摘要：This research was intended to find out the effect of strategy both on performance and competitive advantage; also the reciprocal effect between performance and competitive advantage. The sample consisted of 140 small businesses taken by simple random sampling. The data were collected by questionnaire, which have been tested both for its validity and reliability. Then, data were analyzed by structural equation modeling. The result of this research showed that: (1) strategy have positive effect on performance, but does not have effect on competitive advantage, and (2) there is no reciprocal effect between performance and competitive advantage.
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