Strategic planning and organizational performance in volatile contexts: The mediating role of human capital within the General Authority for Zakat in Yemen

Abstract

This study examines the statistical relationships among strategic planning (SP), human capital (HC), and organizational performance (OP) within the General Authority for Zakat (GAZ) in Yemen. Grounded in the Resource-Based View (RBV) and Dynamic Capabilities Theory, the study extends existing research by evaluating an established planning-capabilities–performance framework within a specialized public institution operating under institutional volatility and resource constraints. The study gathered empirical data through a field survey of 632 personnel across the Authority's central headquarters and key regional governorates (Sana'a, Amanat al-Asimah, Ibb, Hodeidah, and Sa'ada). We tested the hypotheses using Partial Least Squares Structural Equation Modeling (PLS-SEM) in SmartPLS 4. The empirical estimations reveal statistically significant positive relationships between strategic planning and organizational performance (beta = 0.402, t = 3.406, p = 0.001), strategic planning and human capital (beta = 0.718, t = 14.370, p < 0.001), and human capital and organizational performance (beta = 0.468, t = 3.852, p < 0.001). Furthermore, human capital-operationalized through employee competencies, innovation, and resilience—partially mediated the indirect relationship between strategic planning and organizational performance (beta = 0.336, t = 3.692, p < 0.001). Given the cross-sectional design and single-respondent data, the results should be interpreted as structural statistical associations rather than evidence of temporal or causal relationships. The findings contextually extend strategic management theories to non-market public settings, highlighting employee capabilities as a key statistical pathway linking formal planning with organizational performance under severe environmental turbulence. Managerial implications are presented as prospective alignment options derived from these associations rather than empirically evaluated interventions.