Organizational Capabilities as a Mediator Between Strategic Planning and Family Business Sustainability

Family businesses (FBs) play a central role in the Yemeni private sector, yet many face persistent challenges related to governance, strategic planning, and intergenerational continuity. This study investigates the mediating role of organizational capabilities (OC) in the relationship between strategic planning (SP) and the sustainability of Yemeni FBs. A structured questionnaire was designed to collect data, which was administered to a sample of 196 individuals holding leadership and supervisory positions at Hayel Saeed Anam Group in Yemen. The study examined sustainability across economic, social, environmental, and financial dimensions, while assessing OC in terms of governance, innovation, organizational flexibility, and technological capabilities. The findings indicate that SP has a significant positive effect on both sustainability and OC, suggesting that well-structured strategic processes contribute directly to long-term business continuity and indirectly by strengthening internal capabilities. OC were also found to significantly enhance sustainability, confirming their crucial role in transforming strategic intentions into tangible outcomes. Furthermore, mediation analysis revealed that OC partially mediate the relationship between SP and sustainability, highlighting that the success of strategic plans depends heavily on the firm’s ability to develop and leverage internal capabilities effectively. The study offers important theoretical and practical implications. Theoretically, it supports the dynamic capabilities framework by demonstrating how internal resources shape the translation of strategy into sustainable performance. Practically, the results suggest that Yemeni FBs should focus on both strategic planning and the development of organizational capabilities to ensure resilience, continuity, and competitive advantage in complex and uncertain environments.