This study was an effort to test the effects of strategic human resources practices over organizational innovation (exploration and exploitation) and knowledge management capacity of firms (knowledge sharing and knowledge application). Data were gathered across industries operating in Turkey (N = 109). Results from regression analyses emphasized that only certain practices in strategic human resources had predictive power of organizational innovation. Moreover, a similar pattern was observed between the strategic human resources practices and knowledge management capacity of firms. Overall, our findings spoke to the importance of compensation, training and performance appraisal systems as predictors of our dependent variables. Discussions, further suggestions and limitations are provided at the end.