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Transformational Leadership and Knowledge Sharing: Determinants of Firm’s Operational and Financial Performance

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  • Than Thanh Son
  • Le Ba Phong
  • Bùi Thị Thu Loan

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.

Suggested Citation

  • Than Thanh Son & Le Ba Phong & Bùi Thị Thu Loan, 2020. "Transformational Leadership and Knowledge Sharing: Determinants of Firm’s Operational and Financial Performance," SAGE Open, , vol. 10(2), pages 21582440209, May.
    • Handle: RePEc:sae:sagope:v:10:y:2020:i:2:p:2158244020927426
    DOI: 10.1177/2158244020927426
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    Cited by:

    1. Hao-Fan Chumg & Jia-Wen Shin & Hsiu-Yen Chiang & Man-ting Ho, 2022. "What Drives Working Habits for Sharing Knowledge in Virtual Teams? An Organizational Embeddedness Perspective," SAGE Open, , vol. 12(1), pages 21582440221, March.
    2. Hina Shahid & Shafaq Arif Chaudhry & Furrakh Abbas & Saira Ghulam Hassan & Shoaib Aslam, 2023. "Do Morality-Based Individual Differences and Relational Climates Matter? Ethical Leadership and Knowledge Hiding: A Multilevel Framework," SAGE Open, , vol. 13(4), pages 21582440231, December.
    3. Mai Ngoc Khuong & Do Thanh Tung & Thai Hoang Quoc, 2022. "Review of Empirical Research on Leadership and Firm Performance," SAGE Open, , vol. 12(3), pages 21582440221, July.
    4. Jing Yang & Chuangang Shen & Cuiling Jiang & Peixu He, 2023. "Abusive Supervision and Employee Knowledge Sharing: The Roles of Psychological Safety and Perceived Motivational Climate," SAGE Open, , vol. 13(1), pages 21582440231, February.
    5. Richardson Pessoa Diniz, 2024. "Impact of Innovative Work Behaviour and Digitalization on Organization performance: Empirical evidence from Brazil," International Journal of Science and Business, IJSAB International, vol. 33(1), pages 1-17.

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