With the decreasing labor forces throughout the United States, if leadership of the ship repair industry does not incorporate knowledge sharing and innovation into their daily business practices, knowledge will be lost during employee departures and turnover of teams from project-to-project, resulting in decreasing firm performance within their organizations. This was a correlation study to determine if there was a correlation between knowledge management, innovation, and firm performance. Data were collected from 69 CEO/Presidents, Human Resource personnel, or members in leadership positions of the Virginia Ship Repair Association in the mid-Atlantic region of the United States. The theoretical framework for this study was the unified model of dynamic knowledge creation with the key constructs of the socialization, externalization, combination, and internalization process; places of knowledge sharing, whether they are virtual, physical, or mental; and leadership. Data collection occurred through an online survey. Multiple linear regression analyses significantly predicted the dependent variable, F(2, 66) = 17.33, p = .000, R2 = .344. Increasing knowledge sharing and innovation practices provides for positive social change for the personnel of these organizations, since the skills they learn within their organizations are immediately usable in their personal endeavors in their churches, neighborhoods, and family relationships and are transferrable to those they interact with outside of their organizations.