Abstract
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.
Highlights
Organizational performance (OP) is a measure of an organization progress, and shows how well an organization is successful in achieving its goals (Koohang et al, 2017)
Given the important role of leadership on knowledge sharing (KS) for improving OP, the first goal of this study is to clarify transformational leadership (TL)’s effect on knowledge collecting and knowledge donating by posing the first research question: Research Question 1: Does TL have significant influences on aspects of KS?
To explore the mechanism of how TL affects specific forms of OP, we propose the third research question: Research Question 3: Do aspects of KS behaviors mediate between TL and OP?
Summary
Organizational performance (OP) is a measure of an organization progress, and shows how well an organization is successful in achieving its goals (Koohang et al, 2017). 706), and the global market is bolstering firms that can create, share and apply knowledge a little quicker than their key competitors (Koohang et al, 2017; Porter, 1980) In such a situation, this research is implemented to investigate the influences of leadership and KS processes on OP. Scholars highlighted that transformational leadership (TL) is one of the most effective leadership styles to foster KS activities and key organizational outcomes (Le & Lei, 2018b; Thomson et al, 2016). Transformational leaders motivate their employees to obtain the highest degree of achievement for OP and managerial performance (GarciaMorales et al, 2008; Nguyen et al, 2017). The article is expected to bring a deeper understanding of potent pathway and mechanism for increasing OP for the following reasons
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
