A Model of Performance Management Based on Innovation and Dynamic Capabilities (Case study: Pars Special Economic Energy Organization)

In today's complex world, gaining competitive advantage is one of the most important concerns for managers, for the realization of which many theories have been proposed. This study seeks to investigate the role of innovation and dynamic capabilities on the performance in Pars Special Economic Energy Zone Organization, in other words, it shows that by applying innovation and dynamic capabilities, performance can be improved. In this study, the initial questionnaire consisted of 27 questions. With the help of fifteen experts and use of CVI and CVR indices, content validity of the questions, were assessed. After the final approval of the questions, 380 questionnaires were distributed among the statistical population (managers and employees of Pars Special Economic Energy Organization), of which 292 questionnaires were completed and returned. For data analysis, structural equation modelling by SmartPls software was used. Data analysis showed that the variables of innovation and dynamic capabilities have a positive and significant effect on performance management and also dynamic capabilities have a positive and significant effect on innovation. In addition, the innovation variable was shown as a mediator in the relationship between dynamic capabilities and performance management. Results confirmed that innovation and dynamic capabilities, both can be factors in improving performance. To continuously improve performance and subsequently gain competitive advantage, there should be a good platform in organization, for supporting innovation and dynamic capabilities.