Strategic Management Practices and SME Performance in the Western Region of Saudi Arabia: Evidence from Tourism SMEs

Abstract

Purpose: This study examines how strategic management practices affect SME performance in the tourism sector in the western region of Saudi Arabia. Methodology/Design/Approach: A quantitative cross-sectional survey was conducted with 350 owners and managers of licensed tourism SMEs in Makkah, Jeddah and Al-Madinah. Data were analysed using reliability testing, EFA, CFA, regression, mediation, moderation and SEM. Findings: Strategy formulation, implementation and evaluation significantly improved SME performance. Strategy implementation strongly predicted implementation success, which partially mediated the implementation-performance relationship. Organisational culture and change management strengthened the implementation-success path. The final SEM model explained 69.2% of SME performance variance and showed acceptable fit. Originality of the research: The study integrates direct, mediating and moderating mechanisms within one empirical model and contributes evidence from Saudi tourism SMEs, an under-researched context aligned with Vision 2030.