The objective of this research was to investigate and elucidate the function of knowledge management and leadership style in enhancing innovation competitive advantage and fostering sustainable performance. There aren't many studies on this subject in the higher education sector, and the majority of empirical study has been done in the service industry. Therefore, it is necessary to reevaluate if the Job Demands-Resources Model, the Resource-Based View theory, and the Knowledge-Based View theory were created to comprehend Iraqi universities. This quantitative study involved 495 respondents from 35 public universities in Iraq, and the data were analysed using SmartPLS software. The results showed that knowledge management and leadership style significantly influenced innovation competitive advantage, and sustainable performance. As a mediator variable, innovation competitive advantage is a body of knowledge that this research theoretically sheds light on. Therefore, there is a need for research on this topic because Iraq has not experienced stability during the wars it has been exposed to in recent periods. Yet, it also possesses innovative minds capable of contributing to the sustainability of the educational sector.