Organizations are often unaware of the effects and benefits of knowledge management. In this study, we are pursuing to investigate the strategy of knowledge management (Codification and Personalization) on innovation and performance of registerd brokerage firms of Tehran Stock Exchange. This study examined the data of 91 brokerage firms in the year 2012. Sample size based on Krejcie and Morgan (1970) and by means of software spss 16 determined Cronbach's alpha coefficient calculation and eventually by means of confirmatory factor analysis and software Lisrel 8.8 tested the hypotheses. The results show that Codified knowledge management strategies directly and indirectly (through increased innovation potential) can be effective on the registerd brokerage firms of Tehran Stock Exchange. However, Personalized knowledge management no significant effect on innovation and performance of registerd brokerage firms of Tehran Stock Exchange. Regarding positive effect of Codified knowledge management on innovation and performance of registerd brokerage firms of Tehran Stock Exchange, our conclusions may help academics and managers in designing  knowledge management strategic  programs in order  to achieve higher innovation, effectiveness, efficiency and profitability.