YADOLLAH GHALAEI ZADE - Department of accounting, Islamic Azad University, Genaveh Branch, Genaveh, Iran.

The concept ofcompetitive advantage has a direct relationship with values expected by customers. As the values presented by an organization approaches to values expected by customers, it can be said that the organization has an advantage over its competitors. The present research is an applied survey. After studying books, papers, and conducting interviews with experts, indices of competitive advantage in pars khodro were identified. These indices (dimensions) include environmental capabilities, competitive smartness, organizational capabilities and communicational capabilities. These dimensions form research hypotheses and each of these indices had sub-dimensions. The questions of the questionnaire were based upon these dimensions. The questionnaires were distributed among managers of pars khodro company. After collecting the questionnaires, the data were analyzed by means of structural equations modeling technique and LISREL software and all hypotheses were supported.

competitive advantage, environmental capabilities, organizational capabilities, communicational capabilities, competitive smartness