Critical Evaluation of the role of knowledgeoriented leadership in knowledge management practices and innovation in the field of \"Management Theory and Practice\" Introduction This article is based on the principles of knowledge management to improve the efficiency of business processes, hang performance and quality of their services and innovation product to their customers. In addition, in processing plants, innovation is usually a direct outcome of the effectiveness of knowledge management, and is the main goal of creating a company and the pursuit of competitive advantage. However, innovative technologies without specialists capable to manage them, can not ensure the competitiveness of any organization. Intellectual capital and its main carrier the person will be a competitive advantage only if the company attaches great importance to its human resources, to create a complete set of jobs linked technologically and organizationally, in accordance with the strategic goals and creates conditions for professional development and skill. The emergence of new technologies, materials, equipment needs constant replenishment and creative use of knowledge, upgrade skills, continuous learning throughout life. Leadership behavior is an important factor in the efficiency within their organization. On the one hand, leaders can create an environment of knowledge, Novikov, individual resources or knowledge to get easy access to knowledge. On the other hand the leadership to create and use knowledge as they can result in competition rather than cooperation, and many other negative attitude to knowledge. This article discusses three main objectives: 1. to analyse the influence of a specific type of organizational leadership - knowledge oriented leadership - on KM practices (i.e., creation, transfer, storage, and application); 2. to analyse the effect of KM practices on product innovation performance; 3. to explore the mediating role of KM practices in the relationship between knowledge oriented leadership and performance in product innovation. Firstly this article discusses the three main of literature, leadership, knowledge management and innovation. In the first stage, the theoretical models. In the second article examines this type of study guide the behavior of the leadership on knowledge management, which includes knowledge creation, transmission, storage and use. In this third article examines the relationship between knowledge management and knowledgeoriented management practices with the help of statistical data. This article shows to improve their innovation through the effective development and implementation of knowledge management initiatives. This article has the following structure: A discussion of the theoretical background and research questions under study follows this introductory section. Next, the third section presents the methodology and main results of the statistical analysis. Finally, the paper closes with a discussion of the research findings and the principal conclusions of the study. Conclusion The modern enterprise is working simultaneously in many contexts. It raises a lot of problems. It is not always clear what the problem is most significant problem and what should be given priority. Therefore, the creation of an effective management system should begin with the ability to identify key challenges, the problems of the enterprise, and then successfully resolve them. If you turn the process of governance in the subject of continuous improvement, it is, firstly, reduce the dependence of the company on the individual skills and competencies of a particular leader, and secondly, will greatly enhance the efficiency of the enterprise as a whole and will allow successfully replicate the experience of successful management of not only one branch of the company, but also, perhaps, the whole country. In conclusion, this paper shows the effect of knowledgeoriented leadership on KM practices for further innovation. The empirical evidence has important implications for managers, and marks progress in the research on the mediating effects of organizational factors in the relationship between KM and innovation