This paper presents a conceptual framework to explore the mechanisms between knowledge sharing and market orientation with a case study from Iraqi industrial SME. This paper attempts to practically justify the presented framework by investigating the relation between knowledge sharing dimensions, in addition to analyzing the mutual relation between knowledge sharing and market orientation and their contribution in fostering technological innovation. This study asserts the effective role of customers in generating of knowledge for firms’ technological innovation. Further, this study provides a complementary perspective between knowledge sharing and market orientation by highlighting customers' role in generating the required knowledge for innovation and the role of knowledge sharing among employees in achieving responsiveness to customers' needs. For practitioners, this paper hopes to help enterprises to obtain deeper understanding of linking mechanisms and recognize the advantages of gathering and generating knowledge about customers and markets, and share this knowledge among all members of the firm to enhance technological innovation.