Small and medium-sized businesses (SMEs) are vital to the national and regional economies because they promote economic growth, employment, and innovation. Due to their lack of managerial expertise, scarce resources, and restricted access to information, SMEs frequently struggle with strategic planning. This study examined the relationship between strategic planning namely strategic goal-setting and customer satisfaction of small and medium-sized businesses (SMEs) in Melaka using a quantitative approach via Multiple Regression Analysis. The Resource-Based View (RBV) and Porter's Generic Strategies served as the theoretical foundations for this study. This study examined quantitative data collected from SME managers in the tourism sector using standardized questionnaires. The findings demonstrated that strategic goal-setting significantly affects customer satisfaction in SMEs of tourism industry. The study offers helpful insights for stakeholders, policymakers, and owners of small and medium-sized enterprises (SMEs) in Melaka on how to integrate strategic planning deemed functional to improve customer satisfaction and support sustainable business practices and strategic management competencies.
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