The Impact of Transformational Leadership on Innovation mediated by Knowledge Sharing Behavior

The Impact of Transformational Leadership
on Innovation mediated by Knowledge Sharing
Behavior
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Abstract
Small and medium business in the country plays an important role in the growth of
economy and their leaders also keep supporting their employees in order to perform the best to
attain results. Further, the current study also lay emphasis on the transormational leadership style
and its impact upon the business. Such that Transformational leaders have very high
expectations and goals that focuses on individual development, has collective vision, and enables
an organization to achieve maximum results. In the same way, current report will also helps to
identify the positive and negative impact upon the leadership style. Thus, through literature
review, report provides views of different authors who present their opinion with regards to the
topic. Moreover, by collecting primary data, researcher also identifies that there is a close
relationship between transformational leadership with knowledge sharing and transformational
leadership with innovation and evaluated that these all creates positive impact upon employees
and company's performance.
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Acknowledgment
First of all, I would like to extend my sincere and heartful obligation towards all who
support me to complete the project in better way. So I would like to thank my teacher who
provide me an opportunity to complete the research.
Next, I would like to thank my tutor who always help me and encourage me to accomplish the
assignment.
I extend my gratitude to my parents who support me directly and indirectly to complete the
project. Last but not the least, my friends who always ready to solve my queries and provide new
ideas through which I am able to complete the project in better manner.
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TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION....................................................................................................6
1.1 Introduction...........................................................................................................................6
1.2 Research Aim........................................................................................................................9
1.3 Objective of the Research ....................................................................................................9
1.4 Research Question................................................................................................................9
CHAPTER 2: LITERATURE REVIEW......................................................................................10
2.1.1. Transformational leadership ..........................................................................................10
2.2.1 Transformational Leadership Theories ...........................................................................14
2.2.2 Innovation theories and concept......................................................................................17
2.2.2 Knowledge sharing critical review social exchange theory ............................................21
2.3 Review recent Empirical Research ....................................................................................21
2.3.1 Transformational Leadership on Innovation....................................................................21
2.3.2 Impact of Transformational Leadership on Knowledge Sharing.....................................23
2.3.3 Impact of Knowledge Sharing on Innovation..................................................................24
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................29
Methods....................................................................................................................................29
3.01 Research types..................................................................................................................29
3.02 Research philosophy.........................................................................................................30
3.03. Research approach...........................................................................................................30
3. 04 Research design...............................................................................................................31
3.05 Data Collection Method....................................................................................................32
3.06 Sample Size and Method..................................................................................................32
3.07 Accessibility and Ethical Issues........................................................................................32
3.08 Data Analyses Plan...........................................................................................................33
3.09 Validity and reliability......................................................................................................33
3.10 Research Limitation..........................................................................................................34
CHAPTER 4: DATA ANALYSIS................................................................................................36
4.1 Results.................................................................................................................................36
Descriptive statistics.................................................................................................................36
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Regression analysis...................................................................................................................39
CHAPTER 5: DISCUSSION.......................................................................................................45
CHAPTER 6: CONCLUSION & RECOMMENDATION...........................................................49
5.1 Conclusion..........................................................................................................................49
5.2 Recommendations...............................................................................................................51
REFERENCES..............................................................................................................................62
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CHAPTER 1: INTRODUCTION
Topic: The Impact of Transformational Leadership on Technology Mediated by Knowledge
Sharing behavior
1.1 Introduction
SME’s plays a huge role in increasing employment and economic growth (Tajasom et al,
2015). According to the Malaysian Department of Statistics (2018), the Malaysian government
has been concerned with the development of SME’s since the 1970’s. The small, medium
enterprises (SME) are discussed in the basis of the different stages relating to the economic
development and different policies making for which the definition is being used. In accordance
with Raju (2005), the World Bank has highlighted over 60 different definitions of SME which
are being in use by 75 countries as being surveyed. With this survey it was highlighted that the
most common definition is based on the number of people being employed by the company and
the capital amount which is invested in the company. For the present study the small and
medium sized companies are defined on the basis of Small & Medium Enterprise Corporation of
Malaysia.
Base on my research findings, we understand that Transformational leadership assumed to
be a major determinant for innovation. Transformational leaders are able to move an
organization from present to the future and implement suitable changes to support any company
goals. Research also shows that knowledge management is another contributing factor in guiding
organizations survive and compete in today’s market demand. As stated by Bass and Riggio
(2006) (Bernard & Ronald, 2006), Transformational leaders have very high expectations and
goals that focuses on individual development, has collective vision, and enables an organization
to achieve maximum results. Transformational leaders accomplish the usage of exploratory
innovation through data input from effective communicators (Dusya & Crossan, 2004). Through
the reading and review of many past research, it was found that there are many positive impact
of transformational leadership on innovation (GUMUSLUOGLU & ILSEV, 2006) and
knowledge sharing ( (Latha & Joji, 2012) compared to how it may impact an organization
negatively. There are many researches done previously that examines the influence of
knowledge sharing on innovation and its impact towards every organizations we will be looking
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into as well (Anwah, 2012). However, it appears that no research in the past examined the
mediating impact of Knowledge Sharing Behavior on innovation through transformational
leadership. It also seems that there is a wide gap in research to be covered in terms of
establishing the link between Knowledge Sharing Behavior and Innovation.
The GDP of Malaysia SME in the year 2018 increased at 6.2 % in comparison to 7.1 %
in the year 2017. The level of performance increased the GDP of Malaysia. On the other
hand, the non- SME noted the 4.7 % and 3.8 % individually in the chart. The GDP of the
SME contributes to the GDP of Malaysia which increased to 38.3 % from earlier of 37.8 %
as compared to last year.
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The value added by the SME at 2015 prices was RM 521.7 billion in comparison to RM
491.2 billion which was recorded in 2017. In simple terms the GDP of SME’s was recorded
at RM 551.7 billion for the year 2018. (2017: RM 519.1 billion)
https://www.dosm.gov.my/v1/index.php?r=column/
cthemeByCat&cat=159&bul_id=R0Vka2RpeVJ0cUlpR3BqdjhudDZhdz09&menu_id=TE5
CRUZCblh4ZTZMODZIbmk2aWRRQT09
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