Background & Purpose: In market conditions, the goods or services offered should be based on customer needs and customer knowledge, and on the other hand, market dynamics can also affect the provision of innovative products. The purpose of this study is to Survey the effects of environmental management on product innovation with the moderating role dynamic capabilities in Tehran Oil Design and Construction Company.
Methodology: The research method is applied in terms of purpose and in terms of collecting data, survey descriptive. The population of this study is the Tehran Oil Design and Construction Company employees. For this purpose, with using Cocran Formula, 240 questionnaires were distributed between the statistical sample and 211 questionnaires was gathered. The data collection tool was a questionnaire whose reliability was calculated as 0.870 using Cronbach's alpha coefficient. The validity of the research instrument was confirmed by confirmatory factor analysis technique. Structural equation modeling method was also used for data analysis.
Findings: The results of the research showed that environmental management have the effect on product innovation with the moderating role dynamic capabilities in Tehran Oil Design and Construction Company.
Conclusion: Environment and sustainability motivates companies to adapt to their business environment and create a healthier production process and resource optimization. This leads to an improved product or an innovative product that consumes less material, uses sustainable materials, and reduces waste and energy consumption.