One of the most important research questions in the field of strategic management is the performance differences between companies that compete with each other in product/service market and the way to sustain competitive advantage. Competitive advantage is reflected in superior economic performance compared to rivals. Innovation is one of the most important capabilities to differentiate products, services, procedures, and overall our business in order to gain superior performance outcomes. Recent studies reveal the importance of organizational culture in order to be innovative and positive effects on business performance. Today, healthcare industry also became more competitive through new liberal policies. Thus innovativeness is a necessity to reach competitive advantage. In this context, the aim of this study is to identify the effects of organizational culture and innovativeness on business performance. To reach this aim a questionnaire survey is performed among the 332 employees of the 65 private hospitals. The database analyzed by SPSS v.15 statistical program using multivariate data analyses techniques through developed hypothesis. According to the findings of this research supported the positive effects of innovation and organizational culture on the business performance in context of healthcare industry.
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