Based on RBV and KBV, Knowledge-based training and development is potential practice for enhancing skills of employees in organizations. In this regard, current study is conducted with an aim to analyze linkage such as practiceresource-uses-performance, in which knowledge-based training and development (practice) impacts on human capital (resource), individual absorptive capacity (uses) and employee innovative behavior (performance).Data was collected through 149 faculty members of Islamabad and Rawalpindi universities (public and private). The statistical tools used for data analysis were SPSS Version -24 and Smart PLS 3.2.7. The sequential mediation was also analyzed to comprehend this linkage. Results show that Knowledge-based training and development enhances human capital which improves individual absorptive capacity and ultimately impact on employee innovative behavior positively. Based on significance of study, it is recommended to examine other knowledge-based HR practices for highlighting their importance in relation to employee's innovative behavior through Practice-resource-usesperformance linkage. Further, this model should also be applied in other service industries like tourism and telecom for generalizability of results.