Matching Strategy and Owner-Manager Characteristic on Small-Medium Enterprise.

Small-Medium Enterprises (SMEs) plays a significant role in a nation economy. They contribute by creating more employment jobs, creating higher production volumes, increasing export and introducing innovation and entrepreneurship skills (Mahembe, 2011). One of the strategies that most SMEs tend to pursue is differentiation strategy, which characterized by a unique product that is hard to imitate by competitor, resulting customer to have a less comparable alternative and thereby less price sensitive (Porter, 1980; Armstrong, 2013). We gathered 131 respondents that is consist of owner-manager of SMEs to find out types of differentiation strategy that is implemented in Indonesia, combined with the owner-manager characteristic that would result in a higher firm's performance which eventually would lead to a competitive advantage.