The efficiency of the innovation factors on competitive advantage

In the current rapidly changing and highly competitive business arena, businesses are forced to transform to continue surviving and growing. Growth could arise from the rising market share or through the introduction of new products, services and processes with various strategies that engage these changes. The general objective of this research is to improve the awareness of the effect that innovation has on developing competitive advantage among organizations in order to achieve superior performance. The research aims to investigate various possible innovation levels in order to identify which one contributes more to the competitive advantage of SMEs‟ competitive advantage. The background of the study will be presented followed the examination of SMEs in Iran and the significance of innovation in this sector. In this research the population will be Iranian SMEs. This research is based on 126 Iranian SMEs as participants. SPSS will be used for analysis.