Current study examines the intervening role of team creativity for the relationship of four kinds of KM practice with innovation and the moderating effect of proactiveness in IT companies based on a Knowledge-Based View (KBV). Data was collected from 316 employees of IT companies who engage in software development in teams with the help of a simple random sampling method. Results indicate that KM practices have a positive impact on innovation. Also, team creativity plays mediating role in the relation of two KM practices i.e., knowledge sharing and knowledge application with innovation. Whereas proactiveness plays a positive moderating role in the relation of knowledge application and knowledge generation with innovation. Moreover, it plays a negative moderating role in relation of Knowledge sharing with innovation. This research adds to the body of literature by suggesting a framework of knowledge diffusion, knowledge storage, knowledge generation, knowledge application, team creativity, proactiveness, and innovation in a single model. This research also adds to the body of literature by proposing the intervening role of team creativity in the relationships of knowledge diffusion, knowledge storage, knowledge generation, and knowledge application, with innovation. The results of this research help the managers to use the team creativity concept to intervene in relation of knowledge diffusion, knowledge storage, knowledge generation, and knowledge application, with innovation. The results of the current study also give valuable insights to managers into why they can use the proactiveness to moderate the relations of knowledge diffusion, knowledge storage, knowledge generation, and knowledge application, with innovation. Current study adds in the body of literature by proposing the entire manuscript on the basis of two theories i.e., Knowledge-Based View (KBV) builds on and expands the RBV.