Purpose In the current era, firms are facing difficulties in align into their capabilities with the hallmarks of the knowledge intensive economy. Notwithstanding the fact that employees’ creativity ensures competitive advantage through innovation, firms are unable to reap the required level of performance. This study investigates the linkage among knowledge processes, employee creativity and firm performance. Moreover, the current quantitative inquiry measures the moderating effect of knowledge intensive culture on knowledge processes and employee creativity. Methodology Surveys were conducted in eight services sector organizations operating in southern Punjab, Pakistan and responses were obtained from 197 employees selected at random. To the test the exposition using empirical data analysis approach, three core hypotheses are drawnand multiple regression analyses, Preacher and Hayes (2004) mediation test and Aguinis (2004) guidelines for moderation were applied on 197 responses to test these hypotheses. Results The results explain that knowledge processes have a positive impact on firm performance and employee creativity partially mediates their stated relationship. Moreover, knowledge intensive culture has a strengthening effect in the relationship between knowledge processes and employee creativity. In-depth investigation outlines that knowledge acquisition, sharing and application are more influencing processes to enhance firm performance. Furthermore, knowledge conversion and protection do nothold significant relevance with firm performance but are supportive elements for other processes. Implications To mature sustained performance, firms have to initiate steps to promote employees’ creativity by deploying optimal mix of knowledge processes and flourish knowledge intensive culture in routine organizational life. Moreover, knowledge processes are important to promote creative behavior in employees that will lead to incessant innovation and firm performance. Originality/value This study gives meaningful thoughts to unexplored areas in the field of knowledge management. First, the indirect effect of knowledge processes on firm performance through employees’ creativity. Second, the importance of knowledge processes to enhance employees’ creativity in the presence of knowledge intensive culture.This study gets together the dynamic constructs in the field of knowledge management; such as knowledge intensive culture and employee creativity and describes their linkage between knowledge processes and firm performance.
