This paper aims to explore the link between sustainable competitive advantage and strategic effectiveness, Erbil was selected as the place to carry out the research at small and medium-sized businesses. current studies are assessing the impact of strategic absorbency (ability), capacity to adjust strategies, and managerial wisdom on small and medium-sized companies in the Kurdistan region of Iraq's competitive advantage a separate regression analysis was used to quantify the impact of each independent variable on organizational effectiveness in the researchers applied a straight line of reasoning to small and medium-sized businesses in the Kurdistan region of Iraq. this ended up being a total of 175 questionnaires that were completed, as 152 of the 152 participants answered them correctly The study discovered that the greatest impact was found in the absorbive capability, with regard to sustainability, but on the least effect in terms of management expertise.