This study proposes a novel research model to investigate the neglected and pivotal mediating role of knowledge-worker productivity between knowledge management processes (knowledge generation, knowledge sharing, and knowledge application) and innovation. The data were collected from the 369 knowledge workers in the IT sector of Pakistan and analyzed using the SmartPLS 3 Version 26. The results indicate that knowledge-worker productivity mediates between two knowledge management processes (knowledge creation and knowledge utilization) and innovation. However, surprisingly, it does not mediate between knowledge sharing and innovation. The results support the pivotal role of knowledge-worker productivity-the most striking challenge for the management discipline in the 21st century-in knowledge-based innovation. Moreover, the results signify the overarching role of the human and cultural approach to knowledge management over the Big Data and IT and system-based approaches.