This study investigates the quantitative relationship between knowledge based view (i.e. empowering employees, promoting confidence, coding rules) and sustainability competitive advantage (i.e. market, customer, financial) within the banking industry of Iran. A valid research instrument was utilized to conduct a survey of 150 top-and middle-level managers from Mellat bank of Iran. With a response rate of 81.3 percent, 122 questionnaires are returned; the number of valid and usable

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... was 101. In order to determine validity of questionnaire, the content validity was used and Cronbach's alpha was used to determine the reliability of the questionnaire (KBV questionnaire 0.886, SCA questionnaire 0.843). Utilizing the structural equation modeling, and after a series of exploratory and confirmatory factor analyses, it was found that KBV had the greatest effect on the market centered SCA, while it had the least influence on the customer centered.