Unlocking SME Success in the UAE: An Empirical Analysis of the Role of Social Capital, Human Capital and Strategic Management

Abstract

This study examines the impact of human capital, social capital, and strategic management on SME performance in the United Arab Emirates (UAE). Grounded in the Resource-Based View (RBV) and Technology–Organization–Environment (TOE) frameworks, the research investigates how these critical internal resources influence firm success in a dynamic market. Data were collected from 408 SME owners, managers, and CEOs using a systematic stratified random sampling method. Descriptive analysis was conducted with SPSS 24, while Structural Equation Modeling (SEM) was employed to test hypothesized relationships. Results reveal that human capital, social capital, and strategic management each have a significant positive effect on SME performance. The findings underscore the importance of cultivating internal capabilities to enhance competitive advantage and business performance in the UAE’s SME sector. This research contributes empirical evidence supporting RBV and TOE theories in the context of SME development and provides practical implications for business leaders and policymakers.