As the knowledge based economy grows exponentially, the knowledge assets become invaluable to the organizations. Effective use of knowledge has been crucial to the organization?s survival and success in competitive global markets and has a strong potential to problems solving, decision making, organizational performance enhancements and innovation. To manage knowledge effectively organizations need knowledge based structure. The organizational structure should align with organization strategies, fit existing organizational knowledge and lead to continuous improvement and organizational learning. In this paper the effect of organizational structure on knowledge creation, knowledge sharing and knowledge utilization is evaluated. The results support the view that organizational structure affects knowledge sharing and knowledge creation, organic structure can improve knowledge management in the organization. The population is built on firms of Kaveh Industrial City in Iran and the statistical method is use in this study. Keywords: Organizations, Knowledge, Strategies, Continuous improvement and Iran.