Transformational leadership and radical innovation for sustainability: mediating role of knowledge management capability and moderating role of competitive intensity

Abstract

PurposeDrawing on the transformational leadership (TL) and knowledge-based view (KBV) theory, the present study investigates the impact of TL on radical innovation (RI) through the mediation of knowledge management capabilities (KMCs) and moderation of competitive intensity (CI) of textile and apparel industries with an Asian context.Design/methodology/approachData were collected from the relevant stakeholders of the industry-university collaboration teams with a structured survey questionnaire. Working with 304 textile and apparel industry respondents, structural equation modeling based partial least square (PLS-SEM) is used to test the conceptual framework. PLS-SEM technique was applied to test the hypothesis using Smart-PLS 3.8 packages program.FindingsThe results proposed TL has a positive impact on KMC and RI. Furthermore, the study reveals KMC positively mediated the relationship between TL and RI. This mediation is conditional on the moderating role of CI for the KMC (knowledge acquisition capability + knowledge-sharing capability) path to RI. Conversely, moderation of CI is insignificant and does not influence on fostering RI.Practical implicationsLeaders and managers have realized creative and innovative culture is built within the organizations by leader-follower collaboration through actual knowledge acquisition and knowledge sharing. Moreover, industry policymakers and practitioners establish the knowledge management department to enhance the innovation culture among the firms' stakeholders to encourage RI to sustain the global business market.Originality/valueThe study has introduced KMC as a mediator and CI as a moderator in the proposed model between TL-RI and KMC-RI. Further, it explores the linkages between TL, KMC, CI and RI.