THE ROLE OF INTERNAL AND EXTERNAL CONTEXTUAL FACTORS ON FIRMâ€™S RESOURCES-PERFORMANCE RELATIONSHIPS
The critical resources affect the power of companyâ€™s competitiveness. Management and business literature
have limited knowledge and empirical research concerning the problems faced by the Indonesian manufacturing
sector in relation to resources management, strategy, and environment issues. The broad objective of this study
is to investigate the effects of resources on performance in Indonesian manufacturing fi rms and to analyze
sensitivity of the resource-growth relationship on the degree of competition, degree of uncertainty as well as
fi rmâ€™s characteristics. This study is conducted by distributing a set of structured questionnaires to the CEOs of
large-scale manufacturing fi rms. Simple random sampling is used in this study in order to provide the least bias
and offer most generalizability. This study indicates that for the Indonesian manufacturing fi rms to survive and
to grow, they need not only to improve its production capacities but also technological capabilities. The effects
of fi rmâ€™s resources on performance depend on contextual factors such as environment and business strategies.
Keywords: Firmâ€™s Resources, degree of competition, uncertainty, fi rmâ€™s characteristic, fi rmâ€™s performace.
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