The role of knowledge-oriented leadership in knowledge management practices and innovation

This study aims to examine the role of a specific type of organizational leadership – knowledge-oriented leadership – in knowledge management (KM) initiatives that seek to achieve innovation. An analysis of the knowledge-based view of the firm gives rise to several hypotheses, with structural equation modeling (SEM) analysis through partial least squares (PLS) providing the methodology to test these hypotheses. This approach yields results for a sample of empirical data from technology industries. This paper presents empirical evidence of the mediating effect of KM practices in the relationship between knowledge-oriented leadership and innovation performance. In line with previous literature, results show that, although KM practices themselves are important for innovation purposes, the existence of this kind of leadership encourages the development and use of KM exploration (i.e., creation) and exploitation (i.e., storage, transfer, and application) practices. A major implication is that, as a result of this development and the use of KM practices, the firm is able to improve its performance in product innovation.