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The relationships between Environment, Strategy, Organizational Structure, and Business Performance A. Hypothesis Based on the research model, this study hypothesis that: H1. There is positive influence of external environment (EE) to competitive strategies (CS). H2. There is positive influence of internal environment (IE) to competitive strategies (CS). H3. There is positive influence of organizational structures (OS) to competitive strategies (CS). H4. There is positive influence of competitive strategies (CS) to organizational structure (OS). H5. There is positive influence of competitive strategies (CS) to the business performance (BP). H6. There is positive influence of competitive strategies (CS) to organizational structures (OS). H7. There is positive influence of strategic orientation (SO) to the business performance (BP). H8. There is positive influence of organizational structures (OS) to the business performance (BP) III. RESEARCH METHODOLOGY There are six variables which are used in this research; external environment, internal environment, competitive strategy, strategic orientation, organizational structure and business performance. Validity and reliability tests indicate that all variables are valid and reliable. The population of this study are all manufacturing industries in Yogyakarta and Central Java. The samples in this study are designed using Cluster Random Sampling technique, guided by Standard Classification of Indonesian Business Field [Klasifikasi Baku Lapangan Usaha Indonesia] (KBLUI) in category D at digit 2. 250 samples are taken and based on the result of the questionnaire distribution, 143 respondents answered the items completely, so this meets the requirement for Structural Equation Modelling (SEM).

The relationships between Environment, Strategy, Organizational Structure, and Business Performance A. Hypothesis Based on the research model, this study hypothesis that: H1. There is positive influence of external environment (EE) to competitive strategies (CS). H2. There is positive influence of internal environment (IE) to competitive strategies (CS). H3. There is positive influence of organizational structures (OS) to competitive strategies (CS). H4. There is positive influence of competitive strategies (CS) to organizational structure (OS). H5. There is positive influence of competitive strategies (CS) to the business performance (BP). H6. There is positive influence of competitive strategies (CS) to organizational structures (OS). H7. There is positive influence of strategic orientation (SO) to the business performance (BP). H8. There is positive influence of organizational structures (OS) to the business performance (BP) III. RESEARCH METHODOLOGY There are six variables which are used in this research; external environment, internal environment, competitive strategy, strategic orientation, organizational structure and business performance. Validity and reliability tests indicate that all variables are valid and reliable. The population of this study are all manufacturing industries in Yogyakarta and Central Java. The samples in this study are designed using Cluster Random Sampling technique, guided by Standard Classification of Indonesian Business Field [Klasifikasi Baku Lapangan Usaha Indonesia] (KBLUI) in category D at digit 2. 250 samples are taken and based on the result of the questionnaire distribution, 143 respondents answered the items completely, so this meets the requirement for Structural Equation Modelling (SEM).

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This study will develop a model of relationship between the environment, strategy, organizational structures and business performance of the manufacturing industries in Yogyakarta and Central Java. The population of this study are all manufacturing industries in Yogyakarta and Central Java. The samples in this study are designed using Cluster Rando...

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... we propose hypothesis. This literature has been used to develop the conceptual framework for this study as shown in Figure 1. ...

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... The mechanical is suitable for simple and stable environments, while the organic is the most appropriate structure in dynamic and complex environments. These endeavors have attracted the attention of researchers later to identify the features of the two types that might affect organizations' performance [26]. Organizations with mechanical structures have high levels of formalization. ...
... The measurement of business performance is performed using financial and non-financial approaches to determine the achievement of the company's goals (Chong, 2008). However, difficulties emerge when the manager or owner of SMEs is unwilling or reluctant to provide information about financial performance nature (effendi and Arifin, 2010). To anticipate the unavailability of real performance data, such information can be explored through the perception approach of the owner or manager of SMEs (Dess & Beard, 1984). ...
... Furthermore, the SSP put forward that the structure-strategy relationship is contingent to the external environmental. According to Effendi and Arafin, the relationship between structure and strategy is inextricably reciprocal [41]. Structure should be compatible with strategy otherwise strategy formulation and implementation will be constrained. ...
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... The study findings is consistent with some other research results or empirical studies earlier [38,31,39,40,41,8,7], that the alignment between the strategy and external environment affects better performance. Another study suggests that organization/company crisis happened if they do not create alignment between strategy with external environment [42]. Similarly, the preparation of company strategy should be based on analysis and diagnosis of internal resources and external environment that synergically must become input in corporate strategy formulation [3,32]. ...