Proceedings of 28th International Business Research Conference 8 - 9 September 2014, Novotel Barcelona City Hotel, Barcelona, Spain, ISBN: 978-1-922069-60-3 Regional Core Competence on the Basis of Small Scale Industries (Ssis): Case of Makassar City, Indonesia Palmarudi Mappigau1 and Haris Maupa2 The aim of this study is to indentify and determine regional core competence of Makassar City based on core competence of small scale industries (SSIs) and formulate the strategy to establish the regional core competence. Key informant, of two groups of samples (expert and entrepreneurs of SSIs) selected by purposive sampling method. The Data and information collected using interviews, obevation, documentation, and two series forum group discussion (first and second fgd). A fivestep analysis is self-employed in this study, namely: matrix ranking, tree diagrams and expected value (TEV), value chain, the regional core competence, and the SWOT. The result of the study showed that, the core product of Makassar City is marquisa juice-Syrup product with its core competence is distinctive aroma and flavor and medical content. The core competence is generated from the collective learning of farmers and entrepreneurs for a long time so difficult imitated by other regions, having potential access to various market, can be developed to new products or services, and giving social economy benefit. The priorities of selected strategy are strengthening entrepreneurial capital, building an effective supply chain coloboration, and developing network cooperation with universities. This study will contribute to the theory of core competence and regional development and also offer practical implications for policy makers to create incentives for promoting competitiveness of SSIs in a region. Key words: core competence, regional core competence, superior product, small scale industries, makassar city _____________________________________________________________________ 1 2 The Dapartment of Agribusines, Post Graduate Study Programs, Hasanuddin University, Makassar, Indonesia The Department of Management, Faculty of Economic and Business, Hasanuddin University, Makassar, Indonesia