Relations between transformational leadership, organizational learning, knowledge management, organizational innovation, and organizational performance: an empirical investigation of manufacturing firms

Abstract

The aim of this study is to determine relations between transformational leadership, organizational learning, knowledge management, organizational innovation, and organizational performance among Iranian manufacturing companies through structural equation modeling. Two hundred eighty senior, executive, administrative, and other-level managers are selected from among 106 companies having more than 50 employees. Data are analyzed using structural equation modeling. The following findings are found: transformational leadership directly influenced organizational learning and knowledge management. Organizational learning directly and positively influenced knowledge management of manufacturing firms. Transformational leadership positively influenced organizational innovation and organizational performance of manufacturing firms. Organizational learning and knowledge management directly influenced organizational innovation; whereas organizational learning and organizational innovation directly influenced organizational performance among manufacturing firms. Meanwhile, transformational leadership positively and indirectly influenced organizational innovation through organizational learning and knowledge management. Knowledge management and organizational learning effected organizational performance indirectly by organizational innovation. The fit indices shows that the proposed model have an appropriate fit (χ2/df = 2.33, RMSEA = 0.069, NFI = 0.95, NNFI = 0.95, CFI = 97). If leaders of manufacturing firms undertake a transformational role and use organizational learning and knowledge management, this will facilitate organizational innovation and will consequently improve organizational performance to a great extent in manufacturing firms.