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In today’s modern world, increasing pollutions and environmental problems is clear and this matter cause governments and organizations worry or anxiety. These worries lead a new concept named Green product development. This study aimed at investigating the effect of green product development on the organizational performance. To achieve this goal, after investigating literature of each variables, a conceptual modern with eight hypothesizes was presented in which hypothesizes were investigated and through active companies in small and medium size industries of Yazd. In this investigation, we used structural equation modelling approach based on partial least squares method. The results of this study show that green product development effects directly on the environmental performance and organization operating performance. And the effects tortuous use the mediator role of environmental performance and operating performance on the organizational performance and organization marketing performance. In the end, based on the general effect of green product development on organizational performance, application suggestions for doing actions related to green product development, environmental performance, operating performance, and organization marketing performance in small and medium sized industries of Yazd were presented.

Keywords: green product development, Organizational Performance, Structural Equation Modeling, Partial Least Squares

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