The research aims to reach a set of objectives concerning creation a clear vision about conceptual, philosophical and practical dimension of relations, and effects between knowledge management, costumer orientation and competitiveness to construct a framework of a pragmatic model as a solution to research problem and its questions which the main one is about the role of knowledge management and costumer orientation in competitiveness of business organizations. To achieving this goal, it was necessary to make, in priory, a review and discussion to the theoretical dimension of research variables to have a clear vision about constructing hypostatical research model implying a set of hypotheses which, by proving them in companies studied, represent answers to questions posed in research problem. These hypotheses were about the existence of relations and effects between research variables. This research has adopted two approaches: first, ,analytic approach to analysis the questionnaire starting from theoretical hypotheses.Second, comparative approach to compare results between the two company studied. This questionnaire targets a sample of (78) persons who are managers, engineers, and technicians. The research conducted data analysis and test hypotheses using appropriate statistical tools such as means and standard deviation to evaluate level of variables, Spearman correlations to test variables relation and regression to test effects. Validity of the most of research hypotheses was founded. Based on these findings, a set of conclusions were formulated and a set of recommendations target the two companies studied and business organizations to have more attention, efforts, and programs to manage knowledge and costumer orientation to increase its competitive ability.