Innovation is considered as a critical factor for organizations to create value and sustainable competitive advantage in today's complex and changing environment. Organizations with more innovation, in response to the changing environments and creating development of new capabilities that allows them to achieve better performance will be more successful. The aim of current study is to investigate the impact of organizational innovation through innovation capabilities in process and product on the performance of manufacturing firms in Rasht Industrial Town. This research paper is a kind of descriptive and correlation study. The statistical population includes all companies in the industrial city of Rasht (n = 157). Simple random sampling method has been applied, and SPSS 20 and warp pls5 software has been used in order to analyze acquired data. The results indicated that there is a positive relationship between organizational innovation and process innovation capabilities. There was also a positive relationship between organizational innovation and performance through process innovation capabilities. Also a positive relationship between product innovation and company performance and a positive relationship between organizational innovation and performance through product innovation capabilities were observed.