Anwar Anwar, Muhammad Azis, Zainal Ruma
The paper aims to establish sustainable competitive advantage for pottery businesses through the integration of manufacturing strategies and competitive strategies in improving business performance. This study tests and analyzes the effect of direct and indirect manufacturing strategies through mediating competitive strategies on business performance. The research method of this study is survey method. The sample is the 149 Small and Medium enterprises of pottery businesses. The unit of analysis is the owner of the pottery business. To collect out the data, questionnaire with Likert scale measurements is employed. The method of data analysis used descriptive statistics to describe research variables and inferential statistics to test hypotheses using Generalized Structured Component Analysis (GSCA) analysis. The results of this study indicate that; the application of manufacturing strategies in production activities is able to encourage the application of competitive strategies in the pottery business, priority of quality strategies, delivery strategies, flexibility strategies, and cost strategies provide an important role in implementing manufacturing strategies and then, the application of competitive strategies in the business activities has not been able to improve business performance.