Business Leaders-Quantitative Analysis- The Moderating effects of Transformational Leadership on Knowledge Management and Organizational Effectiveness

The Moderating effects of Transformational Leadership on Knowledge Management and Organizational Effectiveness

               In this article the authors try to explore the moderation effects of Transformational Leadership (TL) on Knowledge Management (KM) and Organizational Effectiveness (OE).The model was tested on 524 research and development professional at 21 research institutes. The following variables were used in the research:  Control variable for Gender and Academic Ranking, Independent variable for Knowledge Management, Moderating variable for Transformational Leadership and Interaction variable for Knowledge Management and Transformational Leadership.  The following hypothesis was used in the research.

Hypothesis 1: Transformational Leadership (TL) will be significantly and positively related to Organizational Effectiveness (OE).

Hypothesis 2: Transformational Leadership (TL) will be a moderator between Knowledge Management (KM) and Organizational Effectiveness (OE).

Hypothesis 3: Knowledge Management (KM) will be significantly and positively related to Organizational Effectiveness (OE).

            In the study regression analysis was applied to test the hypothesis of the research. The results showed that Knowledge Management is significantly positive and related to the Organizational effectiveness. It also showed that Transformational Leadership is significantly related to the Organizational Effectiveness. Thus, Hypothesis one is supported. In the research it was also used the hierarchical regression analysis to examine the moderating effect, and in order not to be influenced by exogenous variables, it examined the effects of control variables that included the gender and academic rank.  The results also showed that the independent variable and the moderating variable are significantly correlated to dependent variable. In addition, the results also revealed the interaction effects of knowledge Management and Transformational leadership is also significant to Organizational Effectiveness. Thus, all of the hypotheses are supported.(1)

             Research and Development organizations need to learn and know what the effective Knowledge Management is because you can know what to focus on and learned what the valuable assets of the organization are. Research and Development managers can be more effective if they are able to create and or promote new knowledge of the external market because it can be more appreciated and be more effective that another manager who only focuses on the effectiveness of the organization. Therefore, if the manager is Transformational Leadership he/she is more likely to have a bigger impact on the organization than a manager who only focuses on the effectiveness of the organization.

Work Cited:

Chi, Hsin-Kuang. Lan, Chun-Hsiung. Dorjgotov, Battogtokh. The Moderating effects of Transformational Leadership on Knowledge Management and Organizational Effectiveness. Retrieve from:  (1) <http://libproxy.uhcl.edu:2057/ehost/pdfviewer/pdfviewer?vid=13&hid=107&sid=6e5d0e9a-550a-44ab-8626-2b20b4c7301c%40sessionmgr113>.