The combined effects of rapid globalization together with technological advancements and expanding digital economies create tougher challenges for knowledge-based pharmaceutical SMEs and similar organizations in the market. The modern market demands along with technological changes require Jordanian pharmaceutical SMEs to adjust their operations and develop innovative capabilities. The transformation requires organizations to use digital tools as well as develop inner forces that support innovation development. The performance of innovation within these conditions relies heavily on organizational culture together with knowledge sharing practices. These elements emerge as fundamental strategic management foundations that should not be treated as detached concepts. A firm with effective knowledge exchange systems as well as a strong collaborative culture uses its members' combined expertise to learn and foster sustainable innovation. Knowledge sharing plays a fundamental intermediary role by transforming organizational cultural values into innovative practices especially during digital transformation. The study creates foundational theoretical knowledge through existing literature review to support future empirical research by establishing the intellectual connections between organizational culture and knowledge sharing and innovation performance. This paper seeks to establish a functional model for explaining how cultural elements inside organizations produce better innovation results when knowledge-sharing practices act as intermediary channels in the digital transformation of Jordan's pharmaceutical industry. The research consequences impact decision makers across the pharmaceutical industry of Jordan as well as organizational leaders and their stakeholders. The findings explain how implementing knowledge-sharing culture brings benefits for innovation alongside market competitiveness and digital success in ways that build economic strength of the pharmaceutical sector along with the national economy.