Competence-based -view (CBV) explains the importance of employees’ knowledge to enhance firm level performance in a knowledge-driven-economy(Camisón, 2004; Chen et al., 2016). Since inception, globalization exerts pressure for raising optimal performance to remain competitive in the industry for service and manufacturing sector(Lu & Beamish, 2004). With the emergence of knowledge management discipline, the firms enter into a new avenue to develop employee-level-competence and organization-level-capabilities. Lee and Sukoco (2007) presented knowledge perspective model and claimed that firm performance is the joint outcome of the tangible and intangible resources; intangible resources are termed as knowledge worker. Employees possess knowledge that is an important factor is knowledge that is used for organizational wellbeing i.e. problem solving, innovating new products, organizational effectiveness and performance (Chien & Tsai, 2012; Goh et al., 2012; Zaied, 2012). Knowledge management is important in all sectors, but in services sector organizations its role is paramount. Employees are the center of attention as their services matter for organizational reputation and profitability and knowledge management is found to be one of the prime success factor in service context(Farzin et al., 2014). Hence, in 21st century, organizations are going to invest in their employees to enhance their competence level (Camisón, 2004). In Pakistan, service sector is an important pillar of economy that is growing and constitute around 50% share in overall economy as per Ahmed and Ahsan (2011) making study of knowledge management as an antcicidnet of perfrormace worthwhile. Knowledge possessed by employees is found to result in more creative behaviors as Maimone and Sinclair (2014) highlight the importance knowledge creation to promote creative behaviors in employees. With the help of knowledge, employees are capable to generate innovative ideas and craft paths to implement those ideas(Vargas, 2015). Additionally, Oldham and Cummings (1996) argued that creative behavior of employees is necessary to raise employees’ job and contextual outcomes as well as organizational performance (Anantatmula, 2007; Rasula et al., 2012; Zaied et al., 2012). To strengthen knowledge and creativity relation conducive environment is required as employees need collaborative environment to perform tasks and knowledge intensive culture is an organizational infrastructural element that supports to encourage creativity in organizations (Hauschild et al., 2001). Knowledge intensive culture is one of the process that facilitates employee creativity: for example, in a knowledge supportive culture, employees are encouraged to share knowledge, gain new knowledge, convert it into useable form, apply in right direction and protect it from unlawful hands(Jones et al., 2005; Lal, 2002). In this context, organizations are keenly interested to develop processes that provide employees the required knowledge and influence its overall performance.