International Journal of Academic Research in Business and Social Sciences

search-icon

Exploring the Interpaly of Transformational and Transactional Leadership on Employee Performance: The Mediating Role of Knowledge Sharing

Open access
This study explores the interplay between transformational leadership (TFL) and transactional leadership (TSL) on employee performance (EMP), with specific focus on knowledge sharing (KNS) as a mediating factor. Data were collected from 200 employees through a survey questionnaire, and the research hypotheses were investigated using Partial Least Squares Structural Equation Modeling (PLS-SEM) algorithm and bootstrapping method. The findings indicate that TFL and TSL are positively related to EMP. However, KNS’s intervention in TFL and EMP is higher than in TSL and EMP. Additionally, transformational leadership is more effective in fostering knowledge-sharing behaviors than transactional leadership, reinforcing its role in driving knowledge-based performance improvements. The study underscores the critical role of knowledge sharing in leadership and employee task performance and innovation work behavior. This study contributes to the broader discourse on leadership effectiveness and employee performance in the higher educational sector.
Akaeze, C. (2024). Strategies for Reducing Brain Drain to Sustain Quality Higher Education in Nigeria (Doctoral dissertation, Concordia University Chicago).
Akram, T., Lei, S., Haider, M. J., & Hussain, S. T. (2018). Exploring the impact of knowledge sharing on the innovative work behavior of employees: A study in China. International Business Research, 11(3), 186-194.
Al-Husseini, S., El Beltagi, I., & Moizer, J. (2021). Transformational leadership and innovation: the mediating role of knowledge sharing amongst higher education faculty. International Journal of Leadership in Education, 24(5), 670-693. https://doi.org/10.1080/13603124.2019.1588381
Alblooshi, M., Shamsuzzaman, M., & Haridy, S. (2021). The relationship between leadership styles and organisational innovation: A systematic literature review and narrative synthesis. European Journal of Innovation Management, 24(2), 338-370. https://doi.org/10.1108/EJIM-11-2019-0339
Alharbi, F. B. S. A., & Aljounaidi, A. (2021). Transformational leadership, transactional leadership, and employee performance. Academic Journal of Research and Scientific Publishing Vol, 3, 29.
Aljumah, A. (2023). The impact of extrinsic and intrinsic motivation on job satisfaction: The mediating role of transactional leadership. Cogent Business & Management, 10(3), 2270813.
Alzghoul, A., Khaddam, A. A., Alshaar, Q., & Irtaimeh, H. J. (2024). Impact of knowledge?oriented leadership on innovative behavior, and employee satisfaction: The mediating role of knowledge?centered culture for sustainable workplace. Business Strategy & Development, 7(1), e304. https://doi.org/10.1002/bsd2.304
Asada, N., Hashmib, H. B. A., Nasirc, M., & Khalidd, A. (2021). Transformational leadership relationship with employee creativity: The moderating effect of knowledge sharing and mediating effect of creative self-efficacy. Leadership, 15(8), 1005-1029. https://doi.org/10.53333/IJICC2013/15913
Bass, B. M. (1990). From transactional to transformational leadership: Learning to share the vision. Organizational dynamics, 18(3), 19-31. https://doi.org/10.1016/0090-2616(90)90061-S
Donate, M. J., & de Pablo, J. D. S. (2015). The role of knowledge-oriented leadership in knowledge management practices and innovation. Journal of Business Research, 68(2), 360–370. https://doi.org/10.1016/j.jbusres.2014.06.022
Creswell, J. W. (2014). Research design: qualitative, quantitative and mixed methods approaches (Vol. 54). United State of America: Sage Publications.
Donkor, F., Sekyere, I., & Oduro, F. A. (2022). Transformational and transactional leadership styles and employee performance in public sector organizations in Africa: A comprehensive analysis in Ghana. Journal of African Business, 23(4), 945-963. https://doi.org/10.1080/15228916.2021.1969191
Fischer, H. E., Boone, W. J., & Neumann, K. (2023). Quantitative research designs and approaches. In Handbook of research on science education (pp. 28-59). Routledge.
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of marketing research, 18(1), 39-50. https://doi.org/10.1177/002224378101800104
Haider, S. A., Zubair, M., Tehseen, S., Iqbal, S., & Sohail, M. (2023). How does ambidextrous leadership promote innovation in project-based construction companies? Through mediating role of knowledge-sharing and moderating role of innovativeness. European Journal of Innovation Management, 26(1), 99-118. https://doi.org/10.1108/EJIM-02-2021-0083
Hair Jr, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Partial least squares structural equation modeling (PLS-SEM) using R: A workbook (p. 197). Springer Nature.
Hair Jr, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis. In Multivariate data analysis (pp. 785-785).
Hadi, S., Faridiana, A., Kirana, K. C., Lukitaningsih, A., Rahmawati, C. H. T., Purnasari, E., & Wahyuningtyas, N. (2024). POLITICAL SKILL AND TRANSACTIONAL LEADERSHIP ON EMPLOYEE PERFORMANCE: THE MEDIATING EFFECT OF ORGANIZATIONAL WORK CULTURE. Economic Studies, 33(4).
Handayani, S., Suharnomo, S., & Rahardja, E. (2022). Transactional leadership, well-being support, OCB-altruism, and employee performance: testing their relationship. Review of Applied Socio-Economic Research, 24(2), 70-88. https://doi.org/10.54609/reaser.v24i2.222
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the academy of marketing science, 43, 115-135. https://doi.org/10.1007/s11747-014-0403-8
Khassawneh, O., Mohammad, T., & Ben-Abdallah, R. (2022). The impact of leadership on boosting employee creativity: The role of knowledge sharing as a mediator. Administrative Sciences, 12(4), 175. https://doi.org/10.3390/admsci12040175
Khoshnaw, D., & Karadas, G. (2024). Transactional leadership and intellectual capital, the mediating role of knowledge sharing: The study of customs employees in Sulaymaniyah governorate. Heliyon, 10(19).
Kmieciak, R. (2021). Trust, knowledge sharing, and innovative work behavior: empirical evidence from Poland. European Journal of Innovation Management, 24(5), 1832-1859. https://doi.org/10.1108/EJIM-04-2020-0134
Kusi, L. Y., Opoku-Danso, A., & Afum, E. (2020). Improving performance of public universities in Ghana through talent management: Does leadership support matter. Global Journal of Management and Business Research, 20(10), 41-68.
Laksono, A. A. (2023). The impact learning organization and organization culture to employee performance, mediated by knowledge sharing (Empirical study on Bumitama Agri Ltd.). Aptisi Transactions on Technopreneurship (ATT), 5(2), 145-156. https://doi.org/10.34306/att.v5i2.294
Layaman, L., Harahap, P., Djastuti, I., Jaelani, A., & Djuwita, D. (2021). The mediating effect of proactive knowledge sharing among transformational leadership, cohesion, and learning goal orientation on employee performance. Business: Theory and Practice, 22(2), 470-481.
Magasi, C. (2021). The role of transformational leadership on employee performance: A perspective of employee empowerment. European Journal of Business and Management Research, 6(6), 21-28. 10.24018/ejbmr.2021.6.6.1137
Mahfouz, S., Abd Halim, M. S., Bahkia, A. S., & Alias, N. (2022). Mediating role of employee commitment in the relationship between transactional leadership and employee performance. Journal of Governance and Regulation/Volume, 11(1), 337-350. https://doi.org/10.22495/jgrv11i1siart13
Qalati, S. A., Zafar, Z., Fan, M., Limón, M. L. S., & Khaskheli, M. B. (2022). Employee performance under transformational leadership and organizational citizenship behavior: A mediated model. Heliyon, 8(11).
Mittal, S., & Dhar, R. L. (2015). Transformational leadership and employee creativity: Mediating role of creative self-efficacy and moderating role of knowledge sharing. Management Decision, 53(5), 894–910. https://doi.org/10.1108/MD-07-2014-0464
Podsakoff, P. M., MacKenzie, S. B., Moorman, R. H., & Fetter, R. (1990). Transformational leader behaviors and their effects on followers' trust in leader, satisfaction, and organizational citizenship behaviors. The leadership quarterly, 1(2), 107-142. https://doi.org/10.1016/1048-9843(90)90009-7
Podsakoff, P. M., MacKenzie, S. B., Moorman, R. H., & Fetter, R. (1996). Transformational leader behaviors and their effects on followers' trust in leader, satisfaction, and organizational citizenship behaviors. The Leadership Quarterly, 1(2), 107–142. https://doi.org/10.1016/1048-9843(90)90009-7
Rafique, M. A., Hou, Y., Chudhery, M. A. Z., Waheed, M., Zia, T., & Chan, F. (2022). Investigating the impact of pandemic job stress and transformational leadership on innovative work behavior: The mediating and moderating role of knowledge sharing. Journal of Innovation & Knowledge, 7(3), 100214. https://doi.org/10.1016/j.jik.2022.100214
Sharif, S., Tongkachok, K., Akbar, M., Iqbal, K., & Lodhi, R. N. (2024). Transformational leadership and innovative work behavior in three-star hotels: mediating role of leader-member exchange, knowledge sharing and voice behavior. VINE Journal of Information and Knowledge Management Systems, 54(1), 1-21. https://doi.org/10.1108/VJIKMS-07-2021-0122
Stafford, L., & Kuiper, K. (2021). Social exchange theories: Calculating the rewards and costs of personal relationships. In Engaging theories in interpersonal communication (pp. 379-390). Routledge.
Sudibjo, N., & Prameswari, R. K. (2021). The effects of knowledge sharing and person–organization fit on the relationship between transformational leadership on innovative work behavior. Heliyon, 7(6).
Triansyah, F. A., Hejin, W., & Stefania, S. (2023). Factors affecting employee performance: A systematic review. Journal Markcount Finance, 1(3), 150-159.
Udin, U. D. I. N., DANANJOYO, R., & ISALMAN, I. (2022). Transactional leadership and innovative work behavior: Testing the mediation role of knowledge sharing in distribution market. Journal of Distribution Science, 20(1), 41-53. http://dx.doi.org/10.15722/jds.20.01.202201.41
Zhang, X., & Liu, S. (2022). Understanding relationship commitment and continuous knowledge sharing in online health communities: a social exchange perspective. Journal of Knowledge Management, 26(3), 592-614. https://doi.org/10.1108/JKM-12-2020-0883
Zhu, Y., Zhang, X., Hu, L., & Fredrickson, J. W. (2013). The impact of transformational leadership on organizational knowledge creation: The role of knowledge sharing and knowledge management capability. Journal of Chinese Human Resource Management, 4(2), 147–165. https://doi.org/10.1108/JCHRM-06-2013-0018
Ayitey, V. A., & Eshun, A. (2025). Exploring the Interpaly of Transformational and Transactional Leadership on Employee Performance: The Mediating Role of Knowledge Sharing. International Journal of Academic Research in Business and Social Sciences, 15(11), 231–252.