Development of small and medium-sized manufacturing firms based on the impact of manufacturing firm performance and technological innovation

The importance of innovation in the rapidly changing and evaluation world is not overlooked by anyone. Technological innovation for firms that want to develop and maintain competitive advantage or entry into new markets is inevitable and according to recent studies, if firms fails to maintain its innovation, consequently will bankrupt. Therefore, the purpose of this research is to investigate the effect of technological innovation and firm’s performance on the development of small and medium-sized manufacturing firms. The research method is descriptive-survey and correlation type. The statistical population of the research is Golestan industrial city. Out of 430 active firms based on the Morgan table, 203 firms were randomly selected and top manager of each firm was selectecd as the sapmle to collect data. The data collection tool was standard questionnaires which the reliability and validity is verified by divergence and convergence tests. The Smart-Pls software is used to analyze the data. Research findings have shown that technological innovation.Capability, Technology Infrastructure Capability and organizational culture and climate, have a positive effect, product performance, innovation performance and sales performance. The results also show that the greatest impact on firm’s development is related to innovation performance, product performance, and sales performance sequential