The purpose of this study was to examine the influence of shared leadership and organizational capacity on organizational performance and innovative work behavior (IWB) in sport for development and peace. An electronic survey was distributed to 1,120 sport for development and peace practitioners. A total of 215 completed surveys were recorded for a response rate of 19.2%. Structural equation modeling revealed significant relationships between shared leadership and both organizational performance and IWB. In addition, shared leadership fully mediated the relationship between capacity and IWB, and partially mediated the relationship between capacity and organizational performance. Altogether, the results indicate that shared leadership and capacity combined to explain a significant proportion of variance in performance and IWB. The results provide empirical support for the significant role of shared leadership in sport for development and peace. In addition, the significant direct and indirect effects in the tested model highlight the value of examining both capacity and shared leadership.