How Transformational Leaders Can Effectively Manage Knowledge in Companies

Introduction

Although previous studies, such as Jung, Chow and Wu (2003), Lee and Choi (2003), and Fugate, Stank and Metzer (2009), suggest that transformational leadership’s direct impacts on knowledge management, there is a gap in the literature in examining the implications of transformational leadership for knowledge management through better management of structure, culture, and strategy. The question still remains: How can transformational leaders effectively manage knowledge in companies? To answer this overarching research question, 6 sub-questions are proposed:

• 1.

  What is the impact of transformational leadership on organizational culture?

• 2.

  What is the impact of organizational culture on knowledge management?

• 3.

  What is the impact of transformational leadership on organizational structure?

• 4.

  What is the impact of organizational structure on knowledge management?

• 5.

  What is the impact of transformational leadership on organizational strategy?

• 6.

  What is the impact of organizational strategy on knowledge management?

Transformational leaders are those executives who engage in the facilitation of building and sustaining relationships with subordinates (Marturano & Gosling, 2008; Patiar & Mia, 2009). Knowledge management has been also defined as a set of processes aimed at creating value through generating and applying intellectual capital (Marr et al., 2003). A systematic approach toward transformational leadership as a significant indicator of improving knowledge management processes can provide practical guidelines for management executives (Sosik, 1997; Politis, 2001; Politis, 2002; Jung, Chow & Wu, 2003; Lee & Choi, 2003; Fugate, Stank & Metzer, 2009). In addition, understanding these implications could provide a significant contribution to the literature, especially in developing a new and dynamic conception of transformational leadership within the knowledge management paradigm.

This research adopts the resource-based view and knowledge-based view of the firm to identify various organizational factors mediating the relationship between knowledge management and transformational leadership. In line with this, a literature review is conducted to develop the theoretical rationale for this research using the resource-based and knowledge-based view of the firm. The resource-based and knowledge-based view of the firm underpin the various organizational factors, outlined in the theoretical background section, that link transformational leadership, knowledge management, and organizational factors. I have found that transformational leaders reshape culture, structure, and strategy, aiming at propelling the processes of knowledge management. The findings in this article are based upon previous empirical studies that illustrate the formulation of several propositions that advance the current literature on transformational leadership and knowledge management.