Achieving competitive advantage enables an organization to create a defensible position against its competitors. It also allows organizations to differentiate themselves from competitors. This study aims to investigate impact of knowledge management practices on supply chain quality management and competitive advantage in Alyaf Company, Iran. This research is functional in purpose and data gathering and data analysis is descriptive-correlation. The statistical population is consists of 25 company executives and experts in the supply chain of Alyaf Company; opinions of 68 of its members were used as a selective sample identified by simple random sampling method. Primary data was collected through questionnaire and structural equation modeling was used to assess relationships between variables. The results of structural equation modeling show a positive and significant causal relationship between knowledge management practices and supply chain quality management. Direct relationship between knowledge management and competitive advantage was not confirmed but the relationship between these two variables was confirmed indirectly.
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