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The purpose of this study is the investigation of the effect of organizational innovation on improving sales staff performance in small and medium companies. The population of the study consisted of managers of sales and marketing in Small and medium sized companies that are located in the province in Iran. The sample of the study consists of 350 persons are that were selected by stratified random sampling method. The data gathering tool was a questionnaire which the validity using content validity and construct validity and reliability using Cornbrash's alpha coefficient has been reviewed and approved. The result of the survey show that organizational innovation and performance of the sales force at small and medium sized companies are in acceptable level. Also, according to the results, organizational innovation and its four dimensions including manufacturing, administrative, process and technological innovation has a positive and significant effect on the performance of the sales force at small and medium sized companies.