Exploring the role of transformational leadership in human capital effectiveness

2018 ◽  
Vol 14 (2) ◽  
pp. 191-204 ◽  
Author(s):  
Muhammad Shahid Khan ◽  
Ilham Sentosa ◽  
Faryal Salman
Keyword(s):  
Human Capital ◽  
Transformational Leadership ◽  
Knowledge Management ◽  
Competitive Advantage ◽  
Structured Interview ◽  
Equation Modeling ◽  
Healthcare Industry ◽  
Content Type ◽  
Knowledge Codification

Purpose Malaysia has set year 2020 as a targeted year to become the most developed nation and to transform the economy into knowledge based. Issue is to become developed nation, but without human capital development (HCD) process, the achievement of this vision would be difficult. Numerous studies articulated the direct impact of human capital on the country economic growth. Human capital is a significant factor to get competitive advantage, which is the need of the day for all countries as well as for organizations to survive in today’s tough competitive environment. Major objective of this research was to find the role of transformational leadership (TL) in human capital effectiveness with the effect of knowledge management (KM) strategies. The paper aims to discuss these issues. Design/methodology/approach A mixed research method is deployed in this study. Data are collected with the help of self-administrated questionnaire and a semi-structured interview. The structural equation modeling technique is used in the data; data are analyzed with the help of AMOS and Nvivo software. Findings The results revealed that transformation has a positive effect on KM strategies. Further, this study also identified that knowledge codification strategy and personalization strategy have a positive impact on human capital effectiveness. Research limitations/implications The results revealed that KM strategies play a vital role in human capital effectiveness. Therefore, the Malaysian healthcare industry should introduce KM strategies in order to enhance employees’ knowledge skills and ability. This study is only conducted in Malaysia; the future researcher can use a different method to test the current research model. Practical implications Knowledge codification and knowledge personalization strategy can contribute to the HCD process. This study can be generalized in the Malaysian healthcare industry. This kind of effort will add value into human capital. Hence, organization can get a competitive advantage with the help of human capital. TL style is the most appropriate style in the current era; this leadership has the ability to transform the system, which is the need of the day. Due to rapid changes in technology, a leader who believes in change can meet the challenges of twenty-first century. Originality/value KM strategies and their use have been a research issue for some time. Companies have also adopted knowledge management strategies tools to support and stimulate knowledge sharing in their organizations and to help employees to find the expertise they are looking for. But no research has been performed on the importance of KM strategies. This paper describes a unique and new framework that the authors devised to help companies to do just that.

Influence of transformational leadership and knowledge management on radical and incremental innovation: the moderating role of collaborative culture

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tu Ngoc Nguyen ◽  
Chao Hong Shen ◽  
Phong Ba Le
Keyword(s):  
Transformational Leadership ◽  
Knowledge Management ◽  
Incremental Innovation ◽  
Equation Modeling ◽  
Collaborative Culture ◽  
Innovation Capability ◽  
Content Type ◽  
Mediating Role ◽  
Positive Effects

PurposeThe purpose of this study is to explore the influence of transformational leadership (TL) on a firm's radical and incremental innovation. It also deepens the understanding of appropriate mechanisms and conditions to improve specific aspects of innovation by examining the mediating role of knowledge management capability (KMC) and moderating mechanism of collaborative culture.Design/methodology/approachThis study utilized structural equation modeling (SEM) and cross-sectional design to test hypotheses in the proposed research model using survey data collected from 365 participants in 86 manufacturing and service firms.FindingsThe findings indicate that TL induces greater effect on radical innovation compared to its effect on incremental innovation. The mediating role of KMC between TL and aspects of innovation capability is also supported. Especially, the influences of KMC on specific aspects of innovation capability are different and depend on the degree of collaborative culture in an organization.Research limitations/implicationsFuture research should examine the mediating mechanisms of knowledge acquisition, knowledge sharing and knowledge application to provide deeper insight into specific roles of knowledge management's constituents in linking TL and innovation capability.Practical implicationsThe paper significantly contributes to increasing the understanding of the link between TL and specific aspects of innovation capability by highlighting the important role of KMC and positive effects of collaborative climate in an organization.Originality/valueThe paper is unique in the attempts to provide a prospective solution for firms to pursue and improve innovation based on the meaningful insights into the mediating role of KMC and moderating effect of collaborative culture in the relationship between TL and specific dimensions of innovation capability.

The effect of psychological empowerment on job burnout and competitive advantage

2020 ◽  
Vol 18 (1) ◽  
pp. 47-71 ◽  
Author(s):  
Ali Safari ◽  
Arash Adelpanah ◽  
Razieh Soleimani ◽  
Parisa Heidari Aqagoli ◽  
Rosa Eidizadeh ◽  
...  
Keyword(s):  
Data Analysis ◽  
Organizational Commitment ◽  
Competitive Advantage ◽  
Indirect Effect ◽  
Psychological Empowerment ◽  
Job Burnout ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role

Purpose This study aims at investigating the effect of psychological empowerment on job burnout and competitive advantage with the mediating role of organizational commitment and creativity. Design/methodology/approach The statistical population included all the managers and staffs of Tooka Company in Iran, and for data analysis, 120 completed questionnaires were used. Data analysis was carried out by SPSS 18 and Amos 20 software and structural equation modeling method. To test the mediating relationships, bootstrap method was used. Findings The findings showed that psychological empowerment has a significant direct effect on job burnout and competitive advantage. Also, psychological empowerment has a significant indirect effect on job burnout through the mediating role of organizational commitment. In addition, psychological empowerment has a significant indirect effect on competitive advantage through the mediating role of organizational creativity. Originality/value This study is among the first to investigate the relationship between psychological empowerment, job burnout, competitive advantage, organizational commitment and creativity.

Could CSR improve the financial performance of developing countries’ firms? Analyses of mediating effect of intangible resources

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohamed Hamdoun ◽  
Mohamed Akli Achabou ◽  
Sihem Dekhili
Keyword(s):  
Developing Countries ◽  
Human Capital ◽  
Financial Performance ◽  
Competitive Advantage ◽  
Mediating Effect ◽  
Social Dimension ◽  
Content Type ◽  
Intangible Resources ◽  
The Impact

Purpose This paper aims to examine the link between corporate social responsibility (CSR) and financial performance in the context of developing countries. More specifically, the mediating role of a firm’s competitive advantage and intangible resources, namely, human capital and reputation are studied. Design/methodology/approach The study considered a sample of 100 Tunisian firms. The analysis makes use of the structural equation modelling method to explore the relationship between CSR and financial performance, by including mediator variables. Findings The results confirm that CSR has no significant direct effect on financial performance. In particular, they indicate that the social dimension of CSR has a negative impact on performance. However, CSR does have a positive impact on competitive advantage via the two intangible resources considered, human capital and company reputation. Research limitations/implications The research fills a gap that occurred in the previous literature. In effect, previous studies focussed only on the direct link between CSR and financial performance. In addition, it enriches the limited literature on CSR strategies in the context of developing countries. However, further studies should explore the opposite relationship, i.e. the impact of financial performance on CSR strategy. In addition, the authors believe that amongst other potential research avenues, it would be interesting to study the moderating role of the activity sector. Practical implications From a practical point of view, this study suggests new applications with respect to the link between CSR and financial performance. To enhance their company’s financial performance, managers need to ensure that intangible resources are managed efficiently. Originality/value The paper contributes to the literature by examining how a firm’s intangible resources mediate between CSR and competitive advantage and how competitive advantage mediates between intangible resources and financial performance. Second originality is related to the study of the link between CSR and the financial performance of business organisations in the context of a developing country.

From corporate social responsibility activities to financial performance: role of innovation and competitive advantage

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahnoor Zahid ◽  
Hina Naeem ◽  
Iqra Aftab ◽  
Sajawal Ali Mughal
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Competitive Advantage ◽  
Manufacturing Firms ◽  
Equation Modeling ◽  
Content Type ◽  
Corporate Social ◽  
The Relationship

Purpose The purpose of this study is to scrutinize the effect of corporate social responsibility activities (CSRA) of the firm on its financial performance (FP) and analyze the mediating role of innovation and competitive advantage (CA) in the relationship between CSRA and FP in the manufacturing sector of an emerging country, i.e. Pakistan. Design/methodology/approach Data has been collected through an electronic structured questionnaire from 300 middle-level and top-level managers by surveying different manufacturing firms of Gujranwala, Pakistan. The study’s hypotheses have been checked by analyzing the reliability and validity of data and applying confirmatory factor analysis and structural equation modeling through statistical package for the social sciences and analysis of moment structures. Findings Outcomes of this study supported the hypothesized model. It has been found that the CSRA plays a significant positive role in determining the FP of the firm. Furthermore, the CA and innovation have been proved as significant mediators between CSRA and FP. Originality/value The first time examining the intermediation of innovation and CA in the relationship between CSRA and FP is the primary input of this study to the literature. Practically, this study’s findings will help strategy makers of manufacturing firms in emerging countries develop better strategies for implementing CSRA, enhancing innovation, seeking CA and improving FP.

On the path towards open innovation: assessing the role of knowledge management capability and environmental dynamism in SMEs

2017 ◽  
Vol 21 (3) ◽  
pp. 553-570 ◽  
Author(s):  
Isabel Martinez-Conesa ◽  
Pedro Soto-Acosta ◽  
Elias George Carayannis
Keyword(s):  
Knowledge Management ◽  
Open Innovation ◽  
Equation Modeling ◽  
Research Model ◽  
Environmental Dynamism ◽  
Content Type ◽  
Integrative Research ◽  
The Impact ◽  
The Relationship

Purpose This study aims to shed light on the internal and external antecedents of open innovation (OI) in the context of small- and medium-sized enterprises (SMEs), with a special focus on the role of knowledge management (KM) capability. The paper develops and tests an integrative research model which assesses the effect of internal factors on KM capability; the impact of organizational and external factors, namely, KM capability and environmental dynamism, on OI; and whether environmental dynamism moderates the relationship between KM capability and OI. Design/methodology/approach Drawing on the knowledge-based view and the social exchange and the contingency theories, this paper develops an integrative research model which analyzes several relations between organizational antecedents of KM capability and its effect on OI by using covariance-based structural equation modeling on a data set of Spanish SMEs. Findings Results confirm that information technology-supported operations and commitment-based human resource practices have a positive and significant influence on KM capability. In contrast, results do not find support for the relationship between interdepartmental connectedness and KM capability, whereas both KM capability and environmental dynamism have a direct influence on OI. Originality/value This paper adds to existing research on OI, as it is the first study that addresses the critical role of KM capability for the implementation of OI.

scholarly journals Building Competitive Advantage for Vietnamese Firms: The Roles of Knowledge Sharing and Innovation

2019 ◽  
Vol 10 (4) ◽  
pp. 1
Author(s):  
Son Thanh Than ◽  
Cung Huu Nguyen ◽  
Thang Quang Tran ◽  
Phong Ba Le
Keyword(s):  
Knowledge Management ◽  
Competitive Advantage ◽  
Knowledge Sharing ◽  
Structural Equation ◽  
Low Cost ◽  
Equation Modeling ◽  
Future Research ◽  
Knowledge Application ◽  
Mediating Role

The purpose of this study is to investigate the influence of knowledge sharing (KS) and two specific types of innovation on competitive advantage in Vietnamese firms. Based on using structural equation modeling (SEM) and survey data collected from 225 participants, the findings reveal that KS directly and indirectly affects firm’s competitive advantage through the mediating role of innovation speed and innovation quality. The findings stress the important role of building a positive climate to stimulate employees for sharing knowledge aimed at improving firm’s innovation capability, and sustaining competitive advantage. Future research needs to explore the relationship between three components of knowledge management namely knowledge acquisition, KS, and knowledge application, innovation, and specific aspects of competitive advantage (such as low cost advantage, differentiation advantage, and time advantage) to provide deeper the mechanism of how specifics aspects of knowledge management connected with firm’s certain types of competitive advantage through innovation.

Transformational leadership and innovation in teaching and learning activities: the mediation effect of knowledge management

2019 ◽  
Vol 47 (4) ◽  
pp. 242-250 ◽  
Author(s):  
Sugunah Supermane
Keyword(s):  
Teacher Education ◽  
Transformational Leadership ◽  
Knowledge Management ◽  
Structural Equation ◽  
Clinical Training ◽  
Teaching And Learning ◽  
Mediation Effect ◽  
Primary Data ◽  
Content Type

Purpose Education institutions persist by transforming leadership skills to manage their knowledge resources efficiently as well as enhance the lecturer’s teaching and learning innovation capabilities. Therefore, the purpose of this study is to investigate whether knowledge management plays a role of mediator between transformational leadership and teaching and learning innovation in teacher education. Design/methodology/approach A cross-sectional survey design was used to collect the primary data from 359 teacher educators across Malaysia. Self-administered questionnaires were distributed to all the samples, and the collected data was analysed using structural equation modelling approach. Findings The data analysis indicated that knowledge management did not play the role of a mediator in this study because the direct effect of transformational leadership on teaching and learning innovation was stronger than the indirect effect of transformational leadership through knowledge management. Practical implications From the aspect of implications on the practice, it was suggested that all lecturers and head of departments attend clinical training and workshops on knowledge management to further understand the knowledge management processes that could enhance the quality of teaching in teacher education institutes. Originality/value This study is perhaps the first study to investigate the role of knowledge management as a mediator between transformational leadership and teaching and learning innovation in teacher education.

The impact of transformational leadership on employee creativity: the role of learning orientation

2015 ◽  
Vol 9 (1) ◽  
pp. 78-98 ◽  
Author(s):  
Jeevan Jyoti ◽  
Manisha Dev
Keyword(s):  
Transformational Leadership ◽  
Equation Modeling ◽  
Learning Orientation ◽  
Transformational Leader ◽  
Employee Creativity ◽  
Content Type ◽  
The Impact ◽  
The Relationship ◽  
Moderating Role

Purpose – This research aims to explore the relationship between transformational leadership and employee creativity. In addition, we intend to study the moderating role played by learning orientation in the relationship between transformational leadership and employee creativity. Design/methodology/approach – Data have been collected from employees working at the Airtel and Aircel call centers of J&K (India). A two-step approach to structural equation modeling (SEM) was applied. Confirmatory factor analysis was conducted to assess the proposed measurement model fit and construct validity. The structural model was generated to test the significance of the theoretical relationships. Findings – The results revealed that there is a positive relationship between transformational leadership and employee creativity, and it is being moderated by learning orientation. Research limitations/implications – Although this study expands our knowledge about the role of learning orientation between transformational leadership and employee creativity, the prospects for further research are still present. The cross-sectional design of study might not have been able to extract the true essence of the cause-and-effect relationship between transformational leadership and employee creativity. Practical implications – Transformational leaders promote followers’ creativity, so the management may find it valuable to invest in transformational leadership training for supervisors and team leaders, or use personality testing to screen for high-caliber candidates, who have high potential of becoming a transformational leader. The characteristics of a transformational leader, when coupled with the learning orientation of employees, yield positive results in the form of employee creativity, which managers can use to generate sustainable competitive advantages for their organizations. Originality/value – This paper is original, as it contributes to existing theory by establishing the moderating role played by learning orientation in between transformational leadership and employee creativity. The moderation has been proved via SEM with the help of latent constructs, which is seldom done.

Why does leader attention scope matter for innovation ambidexterity? The mediating role of transformational leadership

2016 ◽  
Vol 37 (7) ◽  
pp. 912-935 ◽  
Author(s):  
Xiaofeng Zheng ◽  
Zhiying Liu ◽  
Xiuyuan Gong
Keyword(s):  
Transformational Leadership ◽  
Structural Equation ◽  
Leadership Behavior ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
Upper Echelons Theory ◽  
Attention Scope ◽  
The Relationship

Purpose The purpose of this paper is to explore the role leader attention plays in the nurture of transformational leadership (TL) behavior, as well as the mechanism by which TL affects innovation ambidexterity, this research empirically studied the relationship between leader attention scope (LAS) and innovation ambidexterity (exploratory innovation and exploitative innovation) through the mediating role of TL. Further, the moderating effect of environmental dynamism (ED) on the relationship between TL and innovation ambidexterity was examined. Design/methodology/approach Empirical study was adopted by distributing questionnaires to high echelon leaders in mainland China to assess related variables. Structural equation modeling was used to examine the relationships of the variables based on the 188 returned questionnaires. Findings The results show that LAS had a positive effect on innovation ambidexterity, and the relationship was partially mediated by TL. ED negatively moderated the relationship between TL and innovation ambidexterity. Practical implications The results suggest that upper echelon leaders receive more unfamiliar, outward-oriented, and source-diverse information to broaden their attention scope. The broad outlook they get obliges them to engage in TL behavior which is beneficial for innovation ambidexterity. Originality/value Based on upper echelons theory, this research reveals the realization mechanism of innovation ambidexterity from the perspectives of leader attention and leadership behavior. This paper avoids the previous research limitation of prevalently employing demographic measurements to substitute for leaders’ psychological processes. The study of LAS also explains the formation mechanism of TL. ED is considered to examine the effectiveness of TL.

Learning from complex and heterogeneous experiences: the role of knowledge codification

2015 ◽  
Vol 19 (5) ◽  
pp. 968-986 ◽  
Author(s):  
Loubna Echajari ◽  
Catherine Thomas
Keyword(s):  
Knowledge Management ◽  
Organizational Learning ◽  
Conceptual Analysis ◽  
Theory And Practice ◽  
Content Type ◽  
Research Areas ◽  
Knowledge Codification ◽  
Critical Realist ◽  
Different Types

Purpose – The purpose of this paper is to study organizational learning from complex and heterogeneous experiences. According to March (2010), this kind of high intellect learning is difficult to accomplish because it requires deliberate investments in knowledge transfer and creation. Zollo and Winter (2002) emphasized how knowledge codification can facilitate this process, as long as it is “well-performed”. However, knowledge management scholars have yet to explore what is meant by well-performed codification and how to achieve it. Design/methodology/approach – This paper addresses this gap and provides a conceptual analysis based on two related but previously disconnected research areas: organizational learning and knowledge management. Findings – This paper contributes to the literature in three ways. First, a new understanding of different types of experiences and their effects on learning is proposed. Then the codification process using a critical realist paradigm to overcome the epistemological boundaries of knowledge versus knowing is discussed; in doing so, it is shown that codification can take different forms to be “well-performed”. Finally, appropriate codification strategies based on experience type are identified. Originality/value – The abstraction-oriented codification outlined in this paper runs counter to the logic of concrete codification that dominates both theory and practice. Thus, going beyond the traditional debate on the degree of codification (i.e. should knowledge be fully codified or just partly codified), this paper introduced a new debate about the appropriate degree of abstraction.

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