Our strength potential has a lot to do with genetic physical architecture. However, this is a statistical phenomenon, not a law. Two reasons why shorter people can be "stronger":
- More compact muscle mass. A smaller person might have the same genetic muscle base as a 6'2" person.
- The laws of levers. Most physical movements involve Third Class Levers of bone, tendon, and muscle. Longer bones mean the range of motion (say, in inches) in a physical effort has further to go, and is thus more challenging. When the fulcrum is in the same place, and the lever is longer, it takes more force to move. Basic mechanics.
So if your 5'8" friend can bench more than you, this might be part of why that is. Speaking statistically, of course, because there are plenty of short weak people and plenty of giant strong people (like Thor, in photo).