The positive impact of knowledge management on innovation performance is no longer a mystery. However, the moderating role of knowledge hoarding remains undisclosed. Therefore, the present study aims to explore the moderating role of knowledge hoarding on the effect of knowledge management on innovation performance. On the ground of its design as a descriptive research, a questionnaire-based survey was developed, validated, and administered to a sample of 314 managers chosen from commerce and service organizations. Using multiple regression analysis and structural equation modeling (SEM), the results indicated that knowledge management processes (knowledge acquisition, dissemination, storage, sharing and application) exerted significant effects on innovation performance. Moreover, Knowledge hoarding exerted a significant negative effect on innovation performance. However, the results indicate that knowledge hoarding did not moderate the effect of knowledge management processes on innovation performance. This finding can be explained by the fact that, despite the negative impact of knowledge hoarding on innovation performance, this effect did not affect the relationship between knowledge management processes and innovation performance and this may be due to the nature of knowledge hoarded by employees in terms of relevance and scarcity. In the light of these findings, the study recommends that it is necessary to determine whether employees hoard knowledge, and distinguish how important this knowledge is for innovation performance. In fact, this is the contribution of the current study to knowledge management literature.