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Does the strategic rating of a general have an effect on their combat abilities or does it only have an affect on the activation

Since activation affects combat abilities, yes.

If I remember correctly, strategic rating only matters for stack commanders. It doesn't matter if subordinate commanders are activated or not.

Well, if subordinate commanders are inactive, they can't be given division command.

jason_r wrote:Does the strategic rating of a general have an effect on their combat abilities or does it only have an affect on the activation

Welcome to the forum Jason_r. The strategic rating is used to determine if the general is activated or not. If they are, they can use certain abilities/commands. If not, they are more limited on what they can do, and they IIRC, they suffer a penalty to movement and attack/defend.

For example, an unactivated general's force can't destroy a supply depot, nor can they form a division. There are several other things they can't do. They can do some things however (if already in a division, they can add more troops to the division for example).

From the manual:
A Leader that is NOT Activated receives a 35% speed penalty to all movement but a combat penalty equal to enemy military control of region, to a maximum of 35%. (Not applicable to Forces in Passive Posture).