THE DEVELOPMENT OF THE HYBRID BUSINESS STRATEGY MODEL FOR SMALL AND MEDIUM ENTREPRISES (SME) IN BALI PROVINCE

This research aims to develop hybrid business strategies for small and medium enterprises in Bali. The population in this research are the SMEs in Bali. There are 135 people who are the sample of this research and they are SME managers that design the business strategy used by the SME. The data analysis technique used is the Exploratory Factor Analysis. The research results show that there are four hybrid business strategies formed, namely : partnership and service strategy; innovation and promotion strategy; promotion strategy; and differentiation and innovation strategy. This shows that SMEs in general can combine several business strategies. This is done by SMEs in order to increase their business performance. The theoretical implication of this research is the revelation of new hybrid business strategies in which are the combination of several business strategies applied by SMEs. Meanwhile, the practical implication and recommendation from this research is for SMEs in Bali to maintain and develop their business by combining available business strategies in the hope that this can improve customer satisfaction and result in the increase in SME performance.