During the past few years, knowledge has played essential role for development of economy. As a result, a new concept of knowledge based economy has been developed. Knowledge based economy is responsible for creating wealth through exploring knowledge. In new millennium, knowledge has made significant impact on socio-economic changes. The proposed study of this paper performs an empirical investigation to determine fundamentals of knowledge based economy in Iran using grounded theory. The study determines five categories including development of innovation and entrepreneurship culture, knowledge creation and distribution, creating competition in economic environment and information and communication economy.

In recent years, there have been significant changes on governmental agencies than any other organizations. There is also an agreement that any improvement on economy requires an efficient government. Governments must be responsive against their people and society but there are evidences that many governmental agencies are not able to meet people’s needs despite access to financial resources because of lack of entrepreneurial approach. This paper presents an empirical investigation to study the role of entrepreneurship governmental groups on macro-economic strategies. The study uses structural equation modeling, by designing a questionnaire in Likert scale, and distributes it among 384 randomly selected university professors in city of Tehran, Iran. The results confirm that technology-based economy, creative human resources and training, competition in the economic environment, knowledge creation, dissemination and application and promoting a culture of innovation and entrepreneurship influence positively on entrepreneurship governmental groups. In addition, the positive effects of entrepreneurship governmental groups on national commitment and management are confirmed.

Knowledge management (KM) plays an important role on increasing organizational performance especially governmental agencies where there are different skills and knowledge within the organization. In this study, we present a study to investigate the effect of KM on having more customer oriented organizations. We use a standard questionnaire among 146 randomly selected employees out of 170 people who work for four governmental organizations in city of Chahbahar, Iran. The collected information is analyzed using structural equation modeling and by validating the results using Cronbach alphas of more than the minimum desired level of 0.70, we determine the positive relationships between KM and three other variables including customer absorption, customer retention and customer relationship management. The results of this survey reveal that an increase of one unit in KM yields almost the same increase in three mentioned variables accordingly. In addition, an increase of one percent in KM will increase customer orientation by almost one percent.