This paper explores how ICT-based knowledge governance mechanisms are influencing knowledge absorptive capacity (ACAP), innovation performance and organizational performance in southern Brazilian firms. We followed a positivist approach and we used quantitative methods. Our sample includes 109 firms from Southern Brazil. Hypotheses were tested using structural equation modelling (SEM) supported by the software SmartPLS 3.2.7. Our paper contributes to the knowledge-based view literature by contributing to understand ‘why’ and ‘how’ ICT-based knowledge governance mechanisms are fostering both firm capabilities and firm outcomes. More specifically, our results improve the understanding about the use and efficiency of knowledge governance mechanisms in different contexts, about the role of antecedents of ACAP and their impact on firm’ performance, and about the specific role of ICT mechanisms for improving ACAP, innovation performance and organisational performance. By doing so, this study opens several avenues for further research. By showing the most important ICT-based knowledge governance mechanisms for enhancing both ACAP and firm’ outcomes, this study helps to improve the efficiency of managerial decisions oriented to allocate resources for deploying those mechanisms in Brazilian organisations.