Employee innovative work behavior has long been studied as a source of gaining a competitive edge over others. Organizations spend millions on their HRM activities in order to enhance the organization’s profitability and performance. This research aims to explore the relationship among high-performance work systems (HPWS), Innovative work behavior, knowledge sharing, and inclusive leadership in faculty members of universities located in Rawalpindi and Islamabad. Using the ability, motivation, and opportunity (AMO) framework under the theory of HPWS, our research hypothesizes that the AMO enhancing practices of faculty members lead to better innovation performance through the mediating role of knowledge sharing and Inclusive leadership (IL) was a significant moderator of the relationship between Knowledge sharing (KS) and Innovative work behavior (IWB). Data were collected from the faculty members of universities located in Rawalpindi and Islamabad. For the completion of the present study, (SPSS) was be used for statistical analysis and generating results. The results of this empirical research show that knowledge sharing positively mediates the relationship between AMO model and employee innovative work behavior. Also, results illustrate that inclusive leadership significantly moderate the relationship between knowledge sharing and employee innovative work behavior. This research has implications for supervisors and managers of organizations to better design HRM practices in order to improve the creativity and innovation performance of employees.