Small and medium-sized enterprises (SMEs) occupy a central place in Oman’s economic development agenda, contributing roughly one-third of national GDP and providing the majority of private-sector employment. Their growing relevance aligns with the objectives of Oman Vision 2040, which emphasizes diversification, innovation, and private-sector competitiveness. Despite extensive state initiatives—such as Tanfeedh and the National Program for Investment and Export Development—many Omani SMEs still struggle with limited managerial capability, weak marketing systems, and inconsistent financial control. These weaknesses are particularly evident in the Al Buraimi Governorate, a border region experiencing a steady rise in SME registrations and cross-border commercial activity. Yet, while opportunities abound, many firms in this area face persistent challenges in strategic planning, customer engagement, and financial discipline, leading to uneven performance outcomes. This study explores how strategic management practices, marketing orientation, and financial practices interact to shape SME performance in Al Buraimi. The research applies the Resource-Based View (RBV) and Dynamic Capabilities Theory (DCT) to explain how internal capabilities translate into sustainable competitive advantage. Using a quantitative cross sectional design, data were gathered from 273 SMEs and analyzed through Structural Equation Modeling (SEM) with SmartPLS 4.0. Results indicate that all three internal dimensions—strategic, marketing, and financial—contribute significantly to overall performance, with marketing and financial capabilities partially mediating the influence of strategic management. The findings underscore the importance of integrated managerial routines in enhancing adaptability and resilience. Beyond theoretical insight, the study offers practical recommendations for policymakers and SME practitioners seeking to strengthen capability development, improve governance, and align enterprise growth strategies with the broader aspirations of Oman’s Vision 2040.