As global market competition continues to intensify, small and medium-sized manufacturing enterprises face increasingly complex challenges in management and development. This study establishes a comprehensive conceptual framework to analyze how competitive strategy influences a firm's capital structure and governance structure, and further explores the mechanisms through which these factors impact enterprise performance. Unlike previous studies, which often treat these variables in isolation, this research uniquely integrates them to reveal the intricate, dynamic interdependencies that drive enterprise success. By uncovering how strategic choices in competition, financial structuring, and governance contribute to performance outcomes, this study not only advances theoretical understanding but also offers actionable insights for managers. The findings provide practical guidance for enhancing competitive advantage and promoting sustainable growth, making significant contributions to the literature on strategic management and corporate governance in the context of small and medium-sized manufacturing enterprises.