The existence of severe pressure is characteristic of emerging economies; Companies must be able to develop their dynamic capabilities to survive in the competitive market. Research shows that in addition to operational capabilities, organizations need dynamic capabilities to develop and update operational capabilities to adapt to environmental opportunities and threats. These capabilities help to develop operational capabilities to better perform daily organizational affairs through the search for new knowledge and injecting it into organizational processes and operations. Therefore, the development of dynamic capabilities is considered as one of the important strategic priorities for gaining and maintaining competitive advantages in organizations, which has attracted the attention of researchers as a new and developing research stream. One of the characteristics of today's successful businesses is having the power of competitiveness, which is a central issue at the world level and is referred to as a means to achieve favorable economic growth and sustainable development. Therefore, the purpose of this research was to investigate the effect of productivity and production capability on business performance and competitiveness.

Keywords: Productivity, Production capability, Competitiveness, Business performance.