Purpose: The study examines the effect of strategic management practices on the organizational performance of small and medium enterprises (SMEs) in Lagos State, Nigeria. Specifically, it focused on strategic planning, strategic implementation, strategic evaluation, and environmental scanning.

Methodology/Design: A positivist, quantitative approach was adopted using a cross-sectional survey design. Data were collected from 320 SME owners and managers through a structured questionnaire measured on a five-point Likert scale. Stratified random sampling was used to ensure representation across sectors. Structural Equation Modeling (SEM) was employed to analyze the data, including confirmatory factor analysis and structural model testing.

Findings/Results: The results showed that all four strategic management practices had positive and significant effects on organizational performance. Strategic implementation had the strongest influence (β = 0.31), followed by strategic planning (β = 0.28), environmental scanning (β = 0.26), and strategic evaluation (β = 0.22). The model demonstrated good fit and explained a substantial proportion of variance in organizational performance (R² = 0.67).

Implications: The findings suggest that SME owners and managers should prioritize effective strategy execution alongside planning and continuous environmental monitoring. Policymakers and support agencies should provide training programs that strengthen strategic capabilities among SMEs to enhance competitiveness and sustainability.