The Influences of Internal Capabilities, External Network and Value Chain Strategy on Competitive Strategy in Improving Company Performance in Food and Beverage MSME Companies in East Java

The increasing number of food and beverage industry companies in the region and increasing competition affect the performance of small, medium and large industries. East Java Province with a population of more than 38 million people and a tropical climate is a potential market for the food and beverage industry nationally and globally. Based on data from the East Java GAPMMI based in Surabaya, the number of entrepreneurs who joined was 245 entrepreneurs. Therefore, it is necessary to conduct research that aims to determine the effect of internal capabilities, external network and value chain strategy variables on competitive strategies in improving company performance in food and beverage MSME industrial companies in East Java Province. The sample of this research is 152 companies. The analytical technique used is (Structural Equation Modeling to confirm each construct forming indicator and simultaneously test the influence between constructs. The result is that External Network, Value Chain Strategy has a significant effect on competitive strategy. Internal Capabilities, External Network and Value Chain Strategy have a significant effect on company performance Meanwhile, Internal Capabilities have no significant effect on competitive strategy.