Linking transformational leadership and frugal innovation: the mediating role of tacit and explicit knowledge sharing

Abstract

Purpose Given the important role of frugal innovation for firms in the developing and emerging countries, the purpose of this paper is to investigate the effect of transformational leadership (TL) on frugal innovation through the mediating roles of tacit and explicit knowledge sharing. Design/methodology/approach The paper used a quantitative research method and structural equation modeling to test the relationship among the latent factors based on a sample of 339 participants from 120 Vietnamese firms. Findings Findings reveal the significant impacts of TL on aspects of frugal innovation, namely, frugal functionality, frugal cost and frugal ecosystem. Moreover, the paper highlights the mediating roles of tacit and explicit knowledge sharing (KS) in the relationship between TL and frugal innovation in terms of frugal functionality and frugal cost. Research limitations/implications To bring a deeper understanding of the benefits and important role of knowledge resources, future research should investigate the potential mediating mechanisms of knowledge management processes in the relationship between specific leadership styles and frugal innovation. Practical implications The paper provides a valuable understanding and novel approach for managers and directors of firms in developing and emerging countries to improve their firms’ frugal innovation capability through leadership practice and knowledge resources. Originality/value This study contributes to bridging research gaps in the literature and advances the insights of how TL directly and indirectly fosters frugal innovation via mediating roles of tacit and explicit KS.

Transformational Leadership, Knowledge Sharing and Innovation Capability: An Empirical Study from Lao Firms

“…Finally, although firm innovation capability is widely prescribed as a driving force of enhancing organizational performance and competitive advantage Nguyen et al, 2019), scholars realized that organizations have to face with many challenges to successfully innovate Lei et al, 2021). This leads to great attention among researchers to look for what enables firms to innovate .…”

“…stressed that transformational leaders play an important role in promoting the willingness of employees toward knowledge sharing behaviors in two ways: "willing to share knowledge in an active way without conditions" and "proactive in collecting or seeking knowledge". Recently, Lei et al (2019) and Lei et al (2021) supposed that TL is interested in setting up knowledge supportive culture through developing a set of values, assumptions, and beliefs to shape followers' behaviors toward performing knowledge activities and engaging in knowledge management process. Their empirical findings showed positive effects of TL on knowledge sharing activities of employees.…”

Frugal innovation enablers, critical success factors and barriers: A systematic review

“…Most technical, institutional and social innovations are done with a combination of knowledge, learning and doing work using the interaction between individuals and firms (Foster & Heeks, 2013). Internal and external knowledge sources (AlMulhim, 2021) and tacit and explicit knowledge (Lei et al, 2021) significantly influence FI. In this regard, universities play a significant role in the knowledge transfer process (Fischer et al, 2020).…”

Leadership styles and employee knowledge sharing: Exploring the mediating role of introjected motivation

“…Knowledge sharing is the flow of knowledge among employees that facilitates the creation of new knowledge [ 3 ]. In knowledge-intensive organizations, knowledge sharing is the key resource that has immense potential to bring positive outcomes such as creativity [ 4 ], firm innovative behavior [ 5 ] team performance [ 6 ], reduction in production cost [ 7 ],and enhancing firm performance including sales growth [ 8 ]. Especially in the context of the service industry, knowledge sharing can be a source of competitive advantage The service organization’s performance is highly dependent on how well knowledge is shared between individuals, teams, and organizations.…”

“…Though knowledge sharing is paramount and indispensable for every organization but it is difficult to turn individual knowledge into organizational knowledge because employees feel reluctant to share their knowledge [ 10 ]. There is considerable research conducted on knowledge sharing in the past few years, but still, there is a lot to be known about the antecedents that foster or restrict knowledge sharing at the workplace [ 4 ]. Past research shows the organizations have to reap the culture of knowledge sharing which is largely dependent on the personality of the leader and how the leader motivate employees to engage in knowledge sharing [ 11 ].…”