Background : Organizations’ performance, particularly in the case of health and treatment, is considered as the basis of qualitative and quantitative improvement of each country if organizations never perform a survey research for evaluation of their knowledge assets, organizational management will never lead to performance development and organizational improvement. This study evaluates the effect of strategic knowledge management on organizational innovation and performance of community health centers.

  Method: This study is practical from the objective aspect, and descriptive-survey from data collection method aspect. The population of this study is out of the health centers of north part of Fars province. In this study, 30 times more than the study variables, that is, 120 people were selected as the sample. We used a questionnaire comprising 20 closed questions in order to test the assumption of this study. In order to assess construct validity, Lizrel software confirmatory factor analysis was used and for analyzing the results, we applied the structural equation testing.

  Result: variables relation was evaluated to measure the effect of knowledge encoding and knowledge individualizing on innovation and performance. T values corresponding to the standard value model of the final way indicate that innovation variables and organizational management are directly related to encoding with 99 percent reliability. In addition, organizational innovation and performance are directly related to knowledge individualizing with 99 percent reliability. Besides, T values corresponding to standard values indicate that innovation is directly related to organizational performance with 99 percent reliability.

  Conclusion: Results show that knowledge individualizing and encoding have a positive effect on innovation and organizational performance. Also these variables have a positive effect on organizational performance through innovation. More over there is a positive and significant relationship between innovation and organizational performance.