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The organizations need to use strategic drivers such as market orientation (MO) and knowledge management (KM) for the development of product and process innovations, which can become a major source of sustainable competitive advantage (SCA). However, there is a gap in the use of these precepts, specifically in Brazilian companies. The purpose of this paper is to measure the relationship among MO, KM orientation, innovation (product and process), SCA and organizational performance (OP).

The research was developed through a survey in 1,072 companies from the industrial manufacturing, commerce and services activity sectors. For the analysis of data, the study used the structural equation modeling method.

This study contributes to managerial decisions in the choice of investment in strategic drivers and innovation, to obtain competitive advantages and economic gains. The results highlight that companies that use market information have formal structures to support innovation processes achieving more successful results.

The framework proposed in this research can be used for different industries and segments.

The theoretical value of this paper is the contribution to the literature with the provision of a framework to analyze the strategic drivers, which are antecedents of innovation in different sectors of activity and in different sizes of companies. It is highlighted as managerial contributions, that the study identified evidence that organizations seek a superior OP to the competitor, creating competitive differentials that result in SCA.