Open AccessThis study aimed to analyze the effect of managerial capacity and industry environment to performance of companies in the small industrial of teak wood furniture in Southeast Sulawesi. The research used census sampling of 143 managers or owners of the company as respondents. The analysis in this research is descriptive and qualitative. The result of the analysis showed that high managerial skills in specialized skills and moral values of trust can anticipate industrial environmental uncertainty by implementing alliances strategies to improve company performance. Specialized expertise and high moral values are essential to managerial skills in order to improve company’s responsiveness to enhance company’s capacity resource and cost production efficiency. Firstly, it can be more responsive to customer need, create quality in product or service, imitating product, and accelerate system to speed-up production process. Then, secondly, being efficient in cost production to formulate and implement proper competitive strategic to improve sales volume, profit and asset.
It is suggested that owner and manager of small industrial in teak furniture firstly need to improve managerial skills in term of conceptual abilities, interpersonal skills, and technical skills. Then second important thing is trust, in term of moral values to make cooperation to third parties and formulating strategic to improve the performance of the firm.