The purpose of this study is to explore the effects of transformational leadership and knowledge-sharing processes on operational and financial performance in Chinese firms. The article applied structural equation modeling to inspect the influence of transformational leadership on knowledge sharing and their effects on organizational performance, based on the data collected from 263 respondents in 112 manufacturing and service companies in China. The findings show that knowledge collecting and knowledge donating mediate the correlation between transformational leadership and two specific aspects of organizational performance. In addition, transformational leadership has a greater influence on financial performance, whereas knowledge sharing is more significantly associated with operational performance. This article highlights the significance of practicing transformational leadership to stimulate individuals’ knowledge-sharing behaviors, which are important prerequisites for improving organizational performance. The article provides clearer understanding for scholars and practitioners about the new and effective pathway to promote firm’s operational and financial performance.
The paper aims to test the mediating role of organizational learning (OL) between transformational leadership (TL) and innovation. Based on the literature review, we developed a research model proposing that TL enhances innovation capability through its positive effects on four components of OL: Knowledge acquisition, knowledge dissemination, knowledge interpretation, and organization memory. Structural equations modeling (SEM) is applied to examine the influence of independent factors on dependent ones via data collected from 76 Chinese firms. The results indicated that aspects of OL act as the mediators between TL and innovation capability. Especially, the findings highlight the important role of TL practice to enhance OL and the knowledge dissemination's significant impacts on innovation capability. The paper has provided theoretical and managerial initiatives on theory of leadership and innovation that might help firms identify a right pathway to promote their innovation capability aimed at adapting more effectively to the changes of business environment.
Drawing on the social exchange theory, this study investigates the influences of transformational leadership (TL) and specific aspects of justice on employee knowledge sharing (KS) behaviours, namely, knowledge collecting (KC) and knowledge donating (KD). Structural equations modelling (SEM) is applied to examine the correlation among the latent factors using data collected from 365 participants at 85 large manufacturing and service firms. The findings indicated that distributive justice (DJ), procedural justice (PJ) and interactional justice (IJ) act as mediating roles in the relationship between TL and KS processes. Specifically, TL and DJ have more significant effects on KD, whereas PJ and IJ have more significant effects on KC. From a practical perspective, the study brings more deep understanding for directors/managers about the effective pathway to improve KC and KD. The findings of this study provide a theoretical basis, which can be used to analyze relationships TL, aspects of justice and KS behaviours. The paper, therefore, significantly extends and refines theories of leadership and social exchange.
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