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The purpose of this study was to find solutions for problems related to small industry performance when connected with competitive strategy and partnership strategy. This study is a theoretical review of the influence competitive strategy and strategic partnership on small industries performance which employed the secondary source of data collection by making use of available literature on competitive strategy and strategic partnership on small industry performance. Because this study aimed to find out what and how much the factors thought affect small industry performance. The theories that already exist about management and organization make more emphasized linkages, that the competitive strategy and strategic partnership and their impact on the small industry performance which in a business activity, competitive strategy used to improve competitiveness. Grand theory as a conceptual problem solving approach in this study uses the concept of existing concepts in Management Strategies. While the middle-range theory used is: theory External Environment, Internal Environment theory, the theory of Competitive Strategy, Partnership Strategy theory, and the theory of performance. The results showed that competitive strategy and partnership strategy have a significant effect on the small industry performance. Furthermore it was found that competitive strategy and partnership strategy has implication for small industry performance.