By Wang Xu
Year 2024
Abstract
The objectives of this study are threefold: 1) to analyze the influence of competitive strategic management on organizational efficiency, capital efficiency, and SMEs’ performance; 2) to analyze the influence of organizational efficiency and capital efficiency on SMEs’ performance; and 3) to analyze the mediating role of organizational efficiency and capital efficiency between competitive strategic management and SMEs’ performance.
A quantitative approach was used, collecting first-hand data from Chinese technology-based SMEs through a questionnaire survey. Structural equation modeling (SEM) was applied to analyze both the direct and indirect effects of competitive strategy management on SME performance. The study included demographic analysis of valid responses, followed by reliability and validity tests of the survey data. SEM was then employed to assess the relationships among competitive strategy management, organizational efficiency, capital efficiency, and SME performance.
The findings indicate that competitive strategy management significantly improves SME performance, organizational efficiency, and capital efficiency. Both organizational and capital efficiency mediate the relationship between competitive strategy management and SME performance. These results highlight the importance of effective strategic management in enhancing not only overall performance but also operational and financial efficiency within SMEs. The study’s practical implications emphasize the need for SMEs to optimize internal processes and financial management to ensure sustainable growth and long-term competitiveness. By leveraging these insights, SMEs can better align their strategies for improved performance and efficiency.