Examining the Role of Strategy Implementation in Enhancing the Performance of Egyptian SMEs

This study examines the effect of strategy implementation—focusing on organizational structure, organizational culture, and resource allocation—on the performance of small and medium-sized enterprises (SMEs) in Egypt. The relevance of this research lies in addressing how effective strategy execution can enhance operational effectiveness and market competitiveness in dynamic environments. The purpose is to analyze the impact of these components and provide actionable insights for SMEs. A quantitative methodology was employed, utilizing regression analysis to examine data collected from SMEs in Egypt. The findings reveal that organizational culture and resource allocation collectively explain 57.9% of the variance in SME performance (R² = 0.579). Organizational culture emerged as the most influential factor, demonstrating a strong positive correlation (r = 0.733, p < 0.001) and fostering innovation, collaboration, and strategic alignment. Resource allocation significantly impacts performance (β = 0.276, p < 0.001), emphasizing the strategic importance of leveraging resources. In contrast, organizational structure presented mixed results, with areas of positive perception (mean = 3.97) and misalignments (mean = 2.7) highlighting the need for adaptive and decentralized structures. These results underscore the critical roles of culture and resource allocation in successful strategy execution, providing practical recommendations for Egyptian SMEs to enhance innovation, agility, and competitiveness.