In the present study, the effect of Management innovation and Business model innovation on firm performance has been investigated by considering the mediating role of sustainable competitive advantage. The present study in terms of applied purpose and in terms of the data collection method, is descriptive‐survey, because it describes the variables in the statistical sample studied. The statistical population of the research is all Managers and vice presidents of export‐oriented production firms located in industrial parks of Khouzestan province in Iran. The study of statistical results showed that the variables of management innovation and business model innovation have a positive and significant effect on firm performance. Also, the variable of sustainable competitive advantage with a positive effect on firm performance, mediates the relationship between two independent variables of research with the dependent variable. Management innovation considers new ways to design a strategy, change firm practices, compensate the service system to organizational members, and create adaptation and change in the firm. Because it is difficult to emulate innovation in management, it will increase the ability of firms to maintain their competitive advantage, and this will also improve performance. Also, firms can achieve a sustainable competitive advantage and thus superior performance by properly utilizing resources through business model innovation and turning it into a kind of core competency with the continuation of innovative practices in line with developments resulting from the dynamics of the business environment.
