The viability of small and medium-sized enterprises (SMEs) is of utmost importance, as it directly impacts the interests of stakeholders and greatly affects the long-term success of these businesses. Therefore, fostering and nurturing successful SMEs is crucial for sustaining a strong competitive edge. One of the most important aspects of modern management is the strategic approach to competition, which determines the future direction an organization will pursue and ultimately shapes its fate. The various forms of SMEs reflect their unique characteristics and stages of development, which necessitates the development of tailored approaches to improve their operations. Capital plays a crucial role in the sustainable development of SMEs, offering them a valuable solution for their day-to-day operations and growth. This study aims to explore the impact of competitive strategy management on the performance of SMEs. Three objectives guide the study: (1) conducting research on the impact of strategic management on small business performance, (2) examining organisational efficiency within this relationship, and (3) exploring the role of capital efficiency in this relationship. The study focuses on Chinese technology-oriented SMEs and collects primary data using a questionnaire method. Empirical analysis typically involves the use of SEM (structural equation modelling), assessments of reliability and validity, and consideration of sample demographics. Organizational and capital efficiency mediate the positive and significant impact of competitive strategic management on the success of SMEs. The relationship between competitive strategy management and SME performance is crucial for organisational efficiency.