In an era where knowledge has become one of the most valuable assets, the ability to effectively gather, store, manage, and utilize knowledge is critical. Given the ever-changing market needs, the sustainable competitive advantage of a company is crucial. The aim of this research is to analyze the role of knowledge management capabilities in sustainable competitive advantage and to assess the effectiveness of the impact provided by knowledge sharing and the innovation value chain in enhancing a company's competitive advantage. The research method employed is quantitative research using a questionnaire with a 1 – 7-point Likert Scale for data collection. This study was conducted on employees, staff, and managers of a state-owned bank in Indonesia, with a sample size of 206 respondents. Data analysis will be performed using Structural Equation Modeling (SEM) technique with SmartPLS 4 software. The results of hypothesis testing indicate that the influence of knowledge management capabilities on knowledge sharing, and the innovation value chain is statistically significant. Furthermore, there is a statistically significant influence between knowledge sharing and sustainable competitive advantage, and knowledge sharing mediates the relationship between knowledge management capabilities and sustainable competitive advantage. The influence of the innovation value chain on sustainable competitive advantage is also significant, however, there is no significant evidence found that the innovation value chain mediates the relationship between knowledge management capabilities and sustainable competitive advantage.