Abstract
Purpose: This study investigates how organizational factors—Employee Empowerment, Fluid Work Environment (FWE), and Workforce Diversity—affect Knowledge Sharing (KS) and, in turn, influence Innovation Propensity within the IT industry. The research addresses a key gap in understanding the mechanisms through which these factors, particularly employee empowerment, contribute to innovation, with Knowledge Sharing serving as a mediating factor. The purpose of this study is to illustrate the crucial significance employee-driven initiatives and knowledge exchange in fostering innovation.

Study design/methodology/approach: To investigate the relationships between organizational characteristics and their effects on knowledge sharing and innovation propensity, a quantitative research methodology was used. IT professionals were surveyed using a standardized questionnaire to gather data. The links between employee empowerment, FWE, workforce diversity, knowledge sharing, and innovation propensity were tested using structural equation modeling (SEM).

Findings: The findings validate that there is a substantial relationship between Employee Empowerment and Knowledge Sharing (β = 0.30292, p

| DOI: 10.17148/IARJSET.2025.12720