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Leadership Styles and Knowledge Management Strategy in Malaysian SMEs

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  • Sivachandran Narayanan
  • Devika Nadarajah
  • Sultan Adal Mehmood
  • Nur Farhana Abdullah

Abstract

This conceptual paper aims to explore the link between leadership styles and SMEs’ knowledge management strategy. While previous studies have explored different leadership styles’ impacts on knowledge management strategy, they have not illuminated ‘why’ a specific style is more effective. Therefore, this paper fills the gap in the literature by answering two questions- (1) What leadership style is apt to promote knowledge management strategy within SMEs? and (2) Why is the particular leadership style appropriate in SMEs? This paper reviews research related transformational, transactional, servant, paternalistic, facilitative and collaborative leadership, and concludes that transformational leadership is imperative for Malaysian SMEs’ knowledge management. The key implications of this paper are- (1) it sheds light on leadership and knowledge management in SMEs in particular, and (2) it posits transformational leadership as the most appropriate style for knowledge management strategy in Malaysian SMEs.

Suggested Citation

  • Sivachandran Narayanan & Devika Nadarajah & Sultan Adal Mehmood & Nur Farhana Abdullah, 2020. "Leadership Styles and Knowledge Management Strategy in Malaysian SMEs," Business Management and Strategy, Macrothink Institute, vol. 11(1), pages 124-147, June.
    • Handle: RePEc:mth:bmsmti:v:11:y:2020:i:1:p:124-147
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    References listed on IDEAS

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    1. Mostafa Sayyadi Ghasabeh & Claudine Soosay & Carmen Reaiche, 2015. "The emerging role of transformational leadership," Journal of Developing Areas, Tennessee State University, College of Business, vol. 49(5), pages 459-467, Special I.
    2. Georg von Krogh & Ikujiro Nonaka & Lise Rechsteiner, 2012. "Leadership in Organizational Knowledge Creation: A Review and Framework," Journal of Management Studies, Wiley Blackwell, vol. 49(1), pages 240-277, January.
    3. Nonaka, Ikujiro & Toyama, Ryoko & Nagata, Akiya, 2000. "A Firm as a Knowledge-Creating Entity: A New Perspective on the Theory of the Firm," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 9(1), pages 1-20, March.
    4. Mostafa Sayyadi Ghasabeh & Claudine Soosay & Carmen Reaiche, 2015. "The emerging role of transformational leadership," Journal of Developing Areas, Tennessee State University, College of Business, vol. 49(6), pages 459-467, Special I.
    5. Bruce Kogut & Udo Zander, 1996. "What Firms Do? Coordination, Identity, and Learning," Organization Science, INFORMS, vol. 7(5), pages 502-518, October.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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