This chapter presents a conceptual framework for understanding how leadership influences and shapes these vital organizational processes. The proposed framework highlights the interplay between leadership behaviors, organizational culture, and employee engagement in fostering environments conducive to knowledge creation and innovation. It emphasizes the role of leadership in promoting trust, psychological safety, and shared purpose, which are essential for cultivating collaborative practices and open communication. The chapter also explores the mechanisms through which leaders can enable knowledge sharing, such as the establishment of supportive structures, the use of digital tools, and the alignment of organizational goals with employee aspirations. Furthermore, the chapter examines how leadership styles, including transformational and participative approaches, can effectively empower employees to engage in creative problem-solving and innovative thinking. It proposes that successful leadership in this context involves a dynamic balance between directive and facilitative practices, ensuring both structure and flexibility in fostering innovation.