EVALUATING STRATEGIC MANAGEMENT DIMENSIONS AND ITS EFFECT ON BUSINESS PERFORMANCE IN FAMILY BUSINESSES IN THE UNITED ARAB EMIRATES’ HOSPITALITY AND FOOD SERVICE SMES
Introduction: The study investigated the effects of the dimensions of strategic management on the financial and non-financial performance of hospitality and food service SMEs in the United Arab Emirates (UAE). It further examines how organisational learning serves as a mediating factor in transforming strategic practices into real financial and non-financial performance. Methodology: The research design was a primary quantitative study, with a sample of 410 managers and leaders of UAE hospitality and food service SMEs, and data were gathered using a structured 5-point Likert-scale questionnaire. Purposive sampling was used to recruit participants, and the analysis was conducted using PLS-SEM in SmartPLS. Reliability and validity were evaluated using Cronbach's alpha, composite reliability, and AVE. Direct and indirect relationships were established using path coefficient analysis. Results: The study found that Strategy formulation significantly enhanced financial (β = 0.085; p = 0.019) and non-financial performance (β = 0.274; p = 0.000). Strategy implementation was found to have insignificant direct effects. Though significant indirect effects through organisational learning mediation on both financial (β = 0.224; p = 0.000) and non-financial (β = 0.111; p = 0.002) performance, which evidenced complete mediation. Environmental scanning showed insignificant direct effects, though it had an indirect impact on organisational learning, affecting both financial (β = -0.116; p = 0.032) and non-financial (β = -0.058; p = 0.049) performance. Strategy evaluation positively influenced non-financial performance, with a direct effect (β = 0.149; p = 0.014), and both financial and non-financial performance through the indirect effect of organisational learning. Conclusion: The findings imply that including organisational learning within strategic processes will be essential for UAE SMEs to enhance both financial and non-financial performance. However, the cross-sectional nature and reliance on self-reported data do not allow for causal inference; longitudinal studies and multi-source data may be necessary to enhance generalisability.Introduction: This study investigates the effects of strategic management dimensions on the financial and non-financial performance of hospitality and food service SMEs in the United Arab Emirates (UAE). It further examines how organisational learning serves as a mediating factor in transforming strategic practices into actual financial and non-financial performance. Methodology: The research design was a primary quantitative study, with a sample of 410 managers and leaders of UAE hospitality and food service SMEs, and data were gathered using a structured 5-point Likert scale questionnaire. Data analysis was conducted using PLS-SEM in SmartPLS. Results: The study found that strategy formulation significantly enhanced financial and non-financial performance. The implementation of strategy was found to have insignificant direct effects. Significant indirect effects through organisational learning mediation on both financial and non-financial performance evidenced complete mediation. Environmental scanning showed insignificant direct effects, although it had an indirect impact on organisational learning, affecting both financial and non-financial performance. Strategy evaluation positively influenced non-financial performance, with a direct effect, and both financial and non-financial performance through the indirect effect of organisational learning. Conclusion: The findings imply that including organisational learning within strategic processes is essential for UAE SMEs to enhance both financial and non-financial performance. However, the cross-sectional nature and reliance on self-reported data do not allow for causal inference; longitudinal studies and multi-source data may be necessary to enhance generalisability.