Abstract
For data collection, Technological Capability Questionnaire (Lall, 2001) and Organizational Innovation Questionnaire (Choopani et al., 2012) have been administered after determining the reliability and validity. The statistical population of the study is comprised of all employees of the Water and Sewage Organization, the Regional Water Company, and the Regional Power Company of Sistan and Baluchestan Province. Also, stratified sampling method is used to select employees with an associate or higher degree. A total of 149 questionnaires were completed and returned by responders from the three communities after distributing the questionnaire. After data analysis using the Lisrel and Spss v19 softwares through the statistical methods of regression and Spearman correlation coefficients, it was clear that there was a significant positive relationship between technological capability and organizational innovation. There was also a significant positive correlation between the three dimensions of technological capability (investment capability, manufacturing capability, and communication capability) and organizational innovation.
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