Abstarct: The sports goods market in Iran is one of the growing economic sectors that, in recent years, has become a key component of the national economy due to the rising demand for products related to sports, health, and active lifestyles. Despite its significance, systematic understanding of the factors influencing the performance of this market has been relatively limited. The main question of this research is, within the frxamework of the Structure–Conduct–Performance (SCP) model, what roles structural and behavioral variables play in shaping the performance of Iran’s sports goods market, and how causal relationships among these variables can be explained. The statistical population includes industries and enterprises active in Iran’s sports goods sector, analyzed at the most detailed level using four-digit ISIC codes. Data were examined using panel data econometric methods and the Granger causality test. The results of hypothesis testing showed that structural variables including the number of enterprises, number of employees, input value, and taxes, along with behavioral variables such as exports, advertising, and other payments, as well as the performance variable value added, had significant effects on sales value. In contrast, variables such as gross output and research and development did not exhibit a direct impact on sales. The Granger causality test revealed both unidirectional and bidirectional relationships among the variables. Bidirectional relationships between sales value and value added, production value and value added, and gross output and other payments indicated the existence of internal feedback cycles in the Iranian sports goods market. Furthermore, unidirectional causalities were identified from structure to performance and from conduct to performance. These findings demonstrate that market structure is the primary driver of performance, while firm conduct largely plays a reinforcing and mediating role. Overall, the results suggest that the Iranian sports goods market is fundamentally structure-oriented and aligns most closely with the structuralist SCP school of thought. However, the presence of feedback relationships between behavioral and performance variables reflects the relative dynamism of this market and highlights the need for simultaneous attention to both structural reforms and behavioral policies. The consistency of these findings with prior domestic and international studies further underscores the importance of developing exports, expanding the number of enterprises, and leveraging marketing and advertising tools to enhance market performance. In conclusion, this research shows that the future of Iran’s sports goods market critically depends on structural reforms such as increasing the number of active enterprises, improving input productivity, and adopting targeted fiscal policies. Alongside these, innovative behaviors such as advertising and investment in research and development can serve as complementary and facilitating tools for development. Beyond strengthening the theoretical SCP frxamework in the Iranian context, this study provides practical guidance for policymakers, producers, and market participants, offering a roadmap for the sustainable development of this industry.