The purpose of this paper is to investigate that either individualists or collectivists employees are more innovative in the public sector concerning knowledge sharing and organizational culture. The study adopted quantitative research technique and data was collected through an online survey. We collected data from a field study of 480 employees working in Pakistan's two major public health institutions to test the study's hypotheses. The study adopted a hierarchical linear regression model to test the hypothesis. Our results show that there is a significant positive influence of organizational-based knowledge sharing, individual-based knowledge sharing, collectivism, and individualism on organizational innovative behavior in the organizations. Furthermore, this study also found a significant positive impact of collectivism and individualism as moderators on organizational innovative behavior. Finally, this study concluded that collectivism has a higher positive impact on organizational innovative behavior in comparison to individualism.