Knowledge management and firm innovative performance with the moderating role of transformational leadership

Purpose: This study aims to examine the effect of knowledge management on firm innovative performance and the moderating effect of transformational leadership in the relationship between knowledge management and firm innovative performance. Design/methodology/approach: In total, 200 managers of participating Malaysian public listed service companies responded to a self-report set of the survey questionnaire. Partial least squares-structural equation modelling technique is used to estimate the main effects of knowledge management, particularly its infrastructures and processes, on firm innovative performance and the moderating effects of transformational leadership on the relationship. Findings: Knowledge management infrastructures and knowledge management processes both have statistically significant and positive effects on firm innovative performance. In addition, transformational leadership significantly and negatively moderates the relationships. Practical implications: The findings of this study can be a reference for the Malaysian public listed service companies to understand how and why managing well knowledge management infrastructures and processes can improve firm innovative performance. Moreover, this study highlights the role of transformational leaders in the context of knowledge management. Originality/value: This study brings about managerial viewpoints of the relationship between knowledge management and firm innovative performance, with the moderating role of transformational leadership.