A theoretical model of transformational leadership's role in diverse teams

Purpose – The purpose of this paper is to develop a theoretical model of leadership and knowledge creation by drawing on two contrasting diversity perspectives. The model argues a moderating role for leadership in explaining the influence of diverse composition on team knowledge creation. Design/methodology/approach – A model of leadership's impact on knowledge creation is developed based on an interdisciplinary review of literature spanning the creativity, innovation and learning literature, diversity management, top management team demography and upper echelons literature and learning from transformational leadership research. Findings – The main contribution of this paper is the development of a model of transformational leadership's impact on knowledge creation in diverse teams based on a series of propositions. Focusing on the information/decision‐making perspective, our model depicts the role of leadership in facilitating constructive cognitive effects on knowledge creation. From the social categorisation perspective our model depicts the role of leadership in mitigating against destructive emotional barriers to group effectiveness. Research limitations/implications – This paper's review and model indicate significant implications for future research and practice. The model provides a better understanding of the effects of transformational leadership on knowledge creation. The paper present justification for two pathways, cognitive and affective, through which leadership moderates the impact of diversity on team outcomes. By examining the model and its proposed relationships, we believe that it will enable researchers to shed new light on these issues for further investigations. Originality/value – This review is among the first to address the role of transformational leadership in diverse teams, and one of the only papers to connect leadership, diversity and knowledge creation.