Abstract
The Saudi Arabian government has recognised the need for an alternative path to national development in the form of a knowledge-based economy (KBE). One of the key drivers of a knowledge-based economy KBE is innovation. Therefore, to achieve this aim, it is important to understand the various factors affecting organisational innovation capability and sustainability. This empirical research study was conducted to provide a better understanding of the interrelationships among the key constructs, socio-technical factors, diffusion of innovation, and knowledge-sharing process towards Saudi organisational innovation capability. The results offer a number of implications, which are beneficial towards the adoption of the knowledge-based economy seeking to enhance the Saudi organisations towards enriching the organisational innovation capability and sustainability.