1. Introduction

In the highly competitive and turbulent climate of the new era, organizations should have the capability to adapt to environmental changes while trying to affect their business environment in the course of achieving their strategies. These requirements have brought the strategic flexibility into the spot light in recent years and given rise to development of useful models and frameworks to better understand and analyze this notion (Chan et al, 2016). Flexibility is contingent upon the firm’s capacity to change or exploit opportunities created in the context of environmental changes and can be viewed as the corporate specific skill or a resource (Doroudi and Babaei, 2016). Strategic flexibility is the capability of a firm to identify the changes in environment and tap into the sources fast to begin new operation to react to the changes (Dehghan-Dehnavi and Nadafi, 2010) so that leads to enhanced innovation performance (Kamasak et al, 2016). Today organizations increasingly face the challenge of improving their products and service to introduce their offering to the mark sooner than their rivals (Kowang et al, 2014). Organization of the new era desperately needs to position itself into the current dynamic and complicated market environment and gain competitive advantage. The capacity to produce new and unique products and service is embedded in the changing markets of today, and it would not be possessed but though innovation. It is quite obvious that a business strategy guiding the organization in the path of innovation plays a crucial role in helping it to have a more favorable position in the market than its rivals do. Therefore, as mentioned before, innovation has an effective role in enhancing organizational status, its long-term survival, and bringing competitive advantage to the organization. Accordingly, it is of high importance to know how to achieve and embed innovation and bring it into harmony with organizational goals so as to develop effective competitive strategies and execute them in the organization in particular (Pashazadeh and Gohari, 2012).