This paper aims to investigate the influence of transformational leadership and knowledge management capability (KMC) on specific forms of innovation capability namely product and process innovation under the moderating effects of organizational learning culture (OLC).
This paper applied structural equation modeling (SEM) and cross-sectional design to test hypotheses in the proposed research model using survey data collected from 327 manufacturing and service firms.
The research findings support the significant effects of transformational leadership on product and process innovation directly or indirectly through the intermediary role of KMC. Especially, the impacts of KMC on product and process innovation are fostered by the moderating influence of OLC.
Future studies should explore the correlation between transformational leadership, potential role of human resource development activities and specific aspects of innovation capability to suggest new and useful solutions to enhance firms’ product and process innovation.
The paper implies the importance of transformational leadership practices for directors/managers to enhance KMC and innovation capabilities of enterprises.
This paper is prospective and opens up new and feasible solutions for firms to pursue and promote product and process innovation through fostering the available and valuable resources such as leadership, knowledge resources and learning culture.
