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Title:
Relationship Between Transformational
Leadership And Knowledge Management In
Learning Organization
SUPERVISED BY: DR. FAQIR SAJJAD UL HASSAN
PREPARED BY: HASNAIN TARIQ (MSMGTKKKUK1F19)
Introduction
1
Variables of the study
Transformational Leadership
Knowledge Management
Learning Organization
Background
 Organizational tactics for business are fast evolving in the twenty-first century, and
firms are putting more of an emphasis on learning organization as a modern company
or firm (Goh, 2003).
 Learning is crucial for the growth of organizations and their human resources, as well
as for maintaining and sustaining their position in the market (Song, Joo, & Chermack,
2009).
 Competitiveness in a Global Context: Companies seek long-term success by
becoming learning organizations (LO) focused on learning, adapting, and acquiring
competitive advantages to enhance performance (Acevedo & Diaz-Molina, 2022).
 Learning Organization (LO): Adapting and changing to acquire competitive
advantages and improve organizational performance through knowledge creation.
 The main strategic objective of the LO is knowledge creation. In current era of
data- driven economy, knowledge management (KM) and finance are critical to
success in many organizations (Cabrera, 2005; Foo, Leong, & Ooi, 2016).
Background
 Knowledge Management: Improves organizational performance by sharing
information effectively, ensuring the right information reaches the right people at
the right time (Girard & Girard, 2015).
 In addition to that, current research has shown that the process of organizational
knowledge sharing is driven by leadership (Srivastava et al. 2006; Singh, 2008).
 Transformational leader possesses a variety of qualities or traits, including
idealistic influence, inspiration, intellectual stimulation, and consideration for
each employee on an individual basis (Bass, 1999; Bass & Avolio, 2000).
 Such a leader fosters a culture of trust in themselves and a strong network of
communication, which allows for the sharing of both old and new knowledge
inside the organization.
Problem Statement and Gap Identification
 A research study conducted by Novak, et al. (2020) on the organization of
Velenje. The Velenje, is the town located in Northern Slovenia country, in Europe.
They focused on “How leaders can initiate KM in organizations: Role of
leadership styles in building knowledge infrastructure” they focused on different
leadership style to originate KM in the organizations, and what role does each
leadership style play in KM? They conducted their research in the organization of
Slovenia while our research in the context of Pakistani organization.
 The first research gap is the region difference or different countries and second,
they did not examine the impact of KM as mediator therefore there are avenue
for future research on testing KM variable as mediator, and third is their obtained
questionnaire data which was 135, more data than the aforementioned
questionnaire was utilized.
Problem Statement and Gap Identification
 While as a result, the findings of this research will help educators and
students in their understanding of the interplaying processes between the
direct and indirect relationships of TL and KM in LO.
 The research study of Gelard & Mohammadi (2014), stated that, the
relationship between TL and KM in Alvan Sabet Company in Iran.
 They only check the relationship between TL and KM and did not use any
mediator or moderator and also have limited population size. Hence, our
research will probe into how TL has a direct impact on LO and it will also
examine to know the role of the mediating variable KM on LO.
Problem Statement and Gap Identification
 This denotes a theoretical gap. Furthermore, the previous studies were
conducted either in developed countries or in developing one, whereas there is a
scarcity of research on said topic in Pakistan, thus identifying an empirical gap.
 Keeping these two gaps in mind, the research is conduct in the Oil and Gas
Development Company Limited (OGDCL,) in KPK, Pakistan.
Aims and Objective of the study
The following are the study objectives:
To know the direct link between TL and LO based on perception of the
employees of OGDCL, KPK Pakistan.
To find the direct link between TL and KM based on perception of the
employees of OGDCL, KPK Pakistan.
To find the direct link between KM and LO based on perception of the
employees of OGDCL, KPK Pakistan.
To determine the mediating role of KM in the direct relationship between TL
and LO based on perception of the employees of OGDCL, KPK Pakistan.
Research
Methodology
3
Research
Approach
• Deductive
Research Design
• The analysis was carried out
using a cross-sectional
approach because it was based
on collecting primary data.
Instrumentation
& Measurement
of Variables
• The analysis used a
questionnaire survey with
closed-ended multiple-
choice questions. Using a
seven-point Likert scale.
Research
Methodology
Demographic Variables
•Demographic questions
that determined personal
traits of respondents
such as gender,
experience of the job,
age, organizational level
or designation.
Transformational Leader
•The measure used to
assess transformative
leadership in the second
portion uses data from a
7-point Likert scale.
Through seven items
created by (Carless,
Wearing, & Mann 2000).
Learning Organization
•The instrument selects
the three distinct
dimensions that exploit a
08-item scale created by
the LO as the study's
dependent variable and
one item was deleted due
to low factor loading
(Hunter-Johnson. 2012).
Knowledge Management
•The mediator is discussed
in the fourth section. KM
is rated on a 7-point
Likert scale that was
developed by Koohang,
et al (2015).
Data was gathered using two methods, online and
paper-pen survey method.
• Online data was gathered with the help of Google-forms.
• Initially, a Google Form was created, and the questionnaire
links were distributed through email, What’s App, and
Facebook.
Paper pen method:
And self-administered paper-
pen survey was also
conducted just for sample
data collection level. Both the
names of the respondents and
the details of their answers
were kept private. In order to
check and correct missing
responses before analysis,
data screening was done on
the returned questionnaires.
 In order to determine the statistics needed to
obtain a representative sample size.
 A pilot study was conducted with 46 employees
from the OGDCL. The Cochran' formula is typically
used to determine sample size for studies
(Cochran, 1997).
Population
For the purpose of accumulating
data, it was difficult to enter all
of the employees of OGDCL,
therefore the 326 employees of
these three oils fields NASHPA,
CHANDA and MELA of the
Khyber Pakhtunkhwa (KPK)
region were selected on the basis
stratified random sampling.
Analysis and Results
4
Statistical Analysis
Frequency distribution was used to
summarize the demographic profile
of the respondents prior to testing
the model and also others
hypotheses of the study.
The descriptive statistics for the
research variables on SPPS were then
assessed, including mean, standard
deviation, and correlation.
Correlation Analysis
Pearson correlation 1 2 3
1. Transformational
leadership
1
2. Learning organization .479** 1
3. Knowledge management .481** .563** 1
**. Correlation is significant at the 0.01 level (2-tailed).
Correlation Analysis of research variables
 The correlation coefficient has a value between -1.00 and +1.00. While a
score of +1.00 shows a positive correlation between the variables,
a negative value indicates a negative correlation.
 The study has one independent variable, that is TL and the dependent
variable of the study is LO have a substantial correlation (r =.479, p <.01).
 The table also illustrates the significant correlation between mediator KM
and independent variable (TL) having (r =.481, p <.01) indicating a strong
positive link.
 The KM also has a positive relationship with LO (r =.563, p <.01).
Conclusion and
Recommendations
5
Conclusion and Recommendations
 In this study, the primary objective was to investigate the influence
of Transformational Leadership (TL) on Learning Organizations (LO)
and Knowledge Management (KM), with a specific focus on the oil
and gas industry, using OGDCL as the case study.
 TL and KM: TL enhances KM processes, including knowledge
acquisition, storage, and dissemination. TL promotes information
exchange among employees, leading to better decision-making and
operational efficiency.
 TL and continuous learning: TL encourages skill and knowledge
development, fostering growth and adaptability.
Managerial Recommendation
 Organizational leaders should stimulate their employees' interest in
their jobs and improve their performance through intellectual
stimulation. In accordance with the study's findings, the following
particular recommendations are given.
 Managers in public sectors organizations should to be trained
according to the TL traits / behaviors of inspirational motivation,
intellectual stimulation, and individualized consideration because
these traits were found to be essential for KM as well as for LO.
 TL traits have greater impact on LO and on KM as well, according to
the results of the study which is concluded in chapter 4.
Recommendation for the Future
Research
 The study examines the Relationship Between T L and KM in
Learning Organization of OGDCL employees. Before the
generalization, the same research needs to be done in other sectors
i.e. PIA, NHA, FWO etc. or as well as in private sectors.
 This research is basically quantitative and requires qualitative
research.
 Future researchers may use other mediators rather than the KM,
such as Advance technology and Organizational commitment. And
also use moderator like Political interferences, Power distance.
References
 Goh, S. C. (2003). Improving organizational learning capability: lessons from two case studies. West Yorkshire: MCB UP
Limited.
 Song, J. H., Joo, B. K., & Chermack, T. J. (2009). The dimensions of learning organization questionnaire (DLOQ): A validation
study in a Korean context. Human Resource Development Quarterly, 20(1), 43-64.
 Acevedo, J., & Diaz-Molina, I. (2023). Learning organizations in emerging economies: the effect of knowledge management
on innovative culture in Chilean companies. The Learning Organization, 30(1), 37-54.
 Cabrera, E. F., & Cabrera, A. (2005). Fostering knowledge sharing through people management practices. The international
journal of human resource management, 16(5), 720-735.
 Girard, J., & Girard, J. (2015). Defining knowledge management: Toward an applied compendium. Online Journal of Applied
Knowledge Management, 3(1), 1-20.
 Benjamins, V. R. (2001). Knowledge management in knowledge-intensive organizations. Intelligent Software Components.
 Srivastava, A., Bartol, K. M., & Locke, E. A. (2006). Empowering leadership in management teams: Effects on knowledge
sharing, efficacy, and performance. Academy of management journal, 49(6), 1239-1251.
 Singh, K. (2008). Relationship between learning organization and transformational leadership: Banking organizations in
India. International journal of business and management science, 1(1), 97-111.
 Dvir, T., Eden, D., Avolio, B. J., & Shamir, B. (2002). Impact of transformational leadership on follower development and
performance: A field experiment. Academy of management journal, 45(4), 735-744.
 Bass, B. M. (1999). Two decades of research and development in transformational leadership. European journal of work and
organizational psychology, 8(1), 9-32.
 Novak, A., Breznik, K., & Natek, S. (2020). How leader can initiate knowledge management in organizations: Role of
leadership style in building knowledge infrastructure. Human system management 39(1), 37-50.
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Relationship Between transformational leadership and Knowledge Management in Learning Organization

  • 1. Title: Relationship Between Transformational Leadership And Knowledge Management In Learning Organization SUPERVISED BY: DR. FAQIR SAJJAD UL HASSAN PREPARED BY: HASNAIN TARIQ (MSMGTKKKUK1F19)
  • 3. Variables of the study Transformational Leadership Knowledge Management Learning Organization
  • 4. Background  Organizational tactics for business are fast evolving in the twenty-first century, and firms are putting more of an emphasis on learning organization as a modern company or firm (Goh, 2003).  Learning is crucial for the growth of organizations and their human resources, as well as for maintaining and sustaining their position in the market (Song, Joo, & Chermack, 2009).  Competitiveness in a Global Context: Companies seek long-term success by becoming learning organizations (LO) focused on learning, adapting, and acquiring competitive advantages to enhance performance (Acevedo & Diaz-Molina, 2022).  Learning Organization (LO): Adapting and changing to acquire competitive advantages and improve organizational performance through knowledge creation.  The main strategic objective of the LO is knowledge creation. In current era of data- driven economy, knowledge management (KM) and finance are critical to success in many organizations (Cabrera, 2005; Foo, Leong, & Ooi, 2016).
  • 5. Background  Knowledge Management: Improves organizational performance by sharing information effectively, ensuring the right information reaches the right people at the right time (Girard & Girard, 2015).  In addition to that, current research has shown that the process of organizational knowledge sharing is driven by leadership (Srivastava et al. 2006; Singh, 2008).  Transformational leader possesses a variety of qualities or traits, including idealistic influence, inspiration, intellectual stimulation, and consideration for each employee on an individual basis (Bass, 1999; Bass & Avolio, 2000).  Such a leader fosters a culture of trust in themselves and a strong network of communication, which allows for the sharing of both old and new knowledge inside the organization.
  • 6. Problem Statement and Gap Identification  A research study conducted by Novak, et al. (2020) on the organization of Velenje. The Velenje, is the town located in Northern Slovenia country, in Europe. They focused on “How leaders can initiate KM in organizations: Role of leadership styles in building knowledge infrastructure” they focused on different leadership style to originate KM in the organizations, and what role does each leadership style play in KM? They conducted their research in the organization of Slovenia while our research in the context of Pakistani organization.  The first research gap is the region difference or different countries and second, they did not examine the impact of KM as mediator therefore there are avenue for future research on testing KM variable as mediator, and third is their obtained questionnaire data which was 135, more data than the aforementioned questionnaire was utilized.
  • 7. Problem Statement and Gap Identification  While as a result, the findings of this research will help educators and students in their understanding of the interplaying processes between the direct and indirect relationships of TL and KM in LO.  The research study of Gelard & Mohammadi (2014), stated that, the relationship between TL and KM in Alvan Sabet Company in Iran.  They only check the relationship between TL and KM and did not use any mediator or moderator and also have limited population size. Hence, our research will probe into how TL has a direct impact on LO and it will also examine to know the role of the mediating variable KM on LO.
  • 8. Problem Statement and Gap Identification  This denotes a theoretical gap. Furthermore, the previous studies were conducted either in developed countries or in developing one, whereas there is a scarcity of research on said topic in Pakistan, thus identifying an empirical gap.  Keeping these two gaps in mind, the research is conduct in the Oil and Gas Development Company Limited (OGDCL,) in KPK, Pakistan.
  • 9. Aims and Objective of the study The following are the study objectives: To know the direct link between TL and LO based on perception of the employees of OGDCL, KPK Pakistan. To find the direct link between TL and KM based on perception of the employees of OGDCL, KPK Pakistan. To find the direct link between KM and LO based on perception of the employees of OGDCL, KPK Pakistan. To determine the mediating role of KM in the direct relationship between TL and LO based on perception of the employees of OGDCL, KPK Pakistan.
  • 11. Research Approach • Deductive Research Design • The analysis was carried out using a cross-sectional approach because it was based on collecting primary data. Instrumentation & Measurement of Variables • The analysis used a questionnaire survey with closed-ended multiple- choice questions. Using a seven-point Likert scale. Research Methodology
  • 12. Demographic Variables •Demographic questions that determined personal traits of respondents such as gender, experience of the job, age, organizational level or designation. Transformational Leader •The measure used to assess transformative leadership in the second portion uses data from a 7-point Likert scale. Through seven items created by (Carless, Wearing, & Mann 2000). Learning Organization •The instrument selects the three distinct dimensions that exploit a 08-item scale created by the LO as the study's dependent variable and one item was deleted due to low factor loading (Hunter-Johnson. 2012). Knowledge Management •The mediator is discussed in the fourth section. KM is rated on a 7-point Likert scale that was developed by Koohang, et al (2015).
  • 13. Data was gathered using two methods, online and paper-pen survey method. • Online data was gathered with the help of Google-forms. • Initially, a Google Form was created, and the questionnaire links were distributed through email, What’s App, and Facebook.
  • 14. Paper pen method: And self-administered paper- pen survey was also conducted just for sample data collection level. Both the names of the respondents and the details of their answers were kept private. In order to check and correct missing responses before analysis, data screening was done on the returned questionnaires.
  • 15.  In order to determine the statistics needed to obtain a representative sample size.  A pilot study was conducted with 46 employees from the OGDCL. The Cochran' formula is typically used to determine sample size for studies (Cochran, 1997).
  • 16.
  • 17.
  • 18. Population For the purpose of accumulating data, it was difficult to enter all of the employees of OGDCL, therefore the 326 employees of these three oils fields NASHPA, CHANDA and MELA of the Khyber Pakhtunkhwa (KPK) region were selected on the basis stratified random sampling.
  • 20. Statistical Analysis Frequency distribution was used to summarize the demographic profile of the respondents prior to testing the model and also others hypotheses of the study. The descriptive statistics for the research variables on SPPS were then assessed, including mean, standard deviation, and correlation.
  • 21. Correlation Analysis Pearson correlation 1 2 3 1. Transformational leadership 1 2. Learning organization .479** 1 3. Knowledge management .481** .563** 1 **. Correlation is significant at the 0.01 level (2-tailed).
  • 22. Correlation Analysis of research variables  The correlation coefficient has a value between -1.00 and +1.00. While a score of +1.00 shows a positive correlation between the variables, a negative value indicates a negative correlation.  The study has one independent variable, that is TL and the dependent variable of the study is LO have a substantial correlation (r =.479, p <.01).  The table also illustrates the significant correlation between mediator KM and independent variable (TL) having (r =.481, p <.01) indicating a strong positive link.  The KM also has a positive relationship with LO (r =.563, p <.01).
  • 24. Conclusion and Recommendations  In this study, the primary objective was to investigate the influence of Transformational Leadership (TL) on Learning Organizations (LO) and Knowledge Management (KM), with a specific focus on the oil and gas industry, using OGDCL as the case study.  TL and KM: TL enhances KM processes, including knowledge acquisition, storage, and dissemination. TL promotes information exchange among employees, leading to better decision-making and operational efficiency.  TL and continuous learning: TL encourages skill and knowledge development, fostering growth and adaptability.
  • 25. Managerial Recommendation  Organizational leaders should stimulate their employees' interest in their jobs and improve their performance through intellectual stimulation. In accordance with the study's findings, the following particular recommendations are given.  Managers in public sectors organizations should to be trained according to the TL traits / behaviors of inspirational motivation, intellectual stimulation, and individualized consideration because these traits were found to be essential for KM as well as for LO.  TL traits have greater impact on LO and on KM as well, according to the results of the study which is concluded in chapter 4.
  • 26. Recommendation for the Future Research  The study examines the Relationship Between T L and KM in Learning Organization of OGDCL employees. Before the generalization, the same research needs to be done in other sectors i.e. PIA, NHA, FWO etc. or as well as in private sectors.  This research is basically quantitative and requires qualitative research.  Future researchers may use other mediators rather than the KM, such as Advance technology and Organizational commitment. And also use moderator like Political interferences, Power distance.
  • 27. References  Goh, S. C. (2003). Improving organizational learning capability: lessons from two case studies. West Yorkshire: MCB UP Limited.  Song, J. H., Joo, B. K., & Chermack, T. J. (2009). The dimensions of learning organization questionnaire (DLOQ): A validation study in a Korean context. Human Resource Development Quarterly, 20(1), 43-64.  Acevedo, J., & Diaz-Molina, I. (2023). Learning organizations in emerging economies: the effect of knowledge management on innovative culture in Chilean companies. The Learning Organization, 30(1), 37-54.  Cabrera, E. F., & Cabrera, A. (2005). Fostering knowledge sharing through people management practices. The international journal of human resource management, 16(5), 720-735.  Girard, J., & Girard, J. (2015). Defining knowledge management: Toward an applied compendium. Online Journal of Applied Knowledge Management, 3(1), 1-20.  Benjamins, V. R. (2001). Knowledge management in knowledge-intensive organizations. Intelligent Software Components.  Srivastava, A., Bartol, K. M., & Locke, E. A. (2006). Empowering leadership in management teams: Effects on knowledge sharing, efficacy, and performance. Academy of management journal, 49(6), 1239-1251.  Singh, K. (2008). Relationship between learning organization and transformational leadership: Banking organizations in India. International journal of business and management science, 1(1), 97-111.  Dvir, T., Eden, D., Avolio, B. J., & Shamir, B. (2002). Impact of transformational leadership on follower development and performance: A field experiment. Academy of management journal, 45(4), 735-744.  Bass, B. M. (1999). Two decades of research and development in transformational leadership. European journal of work and organizational psychology, 8(1), 9-32.  Novak, A., Breznik, K., & Natek, S. (2020). How leader can initiate knowledge management in organizations: Role of leadership style in building knowledge infrastructure. Human system management 39(1), 37-50.