Using Structural Equation Modelling to Evaluate the Relationships Among Transformational Leadership, Knowledge Sharing and Product Innovation
Transformational leadership has been found to have an important influence on knowledge management and innovation, leading to increased goal-directed behaviour on the part of followers, promoting organisational change, and a spirit of trust, and helping followers to exceed their performance expectations. However, there is a lack of models linking transformational leadership, knowledge sharing, and product innovation within higher education institutions in general within developing countries, particularly Iraq.
This research sought to examine the impact of transformational leadership on product innovation through the mediating role of knowledge sharing in Iraqi privatehigher education. A quantitative approach was taken and 215 valid responses were collected to test the causal relationships between transformational leadership, knowledge sharing, and product innovation. Employing structural equation modelling with AMOS 22, the research found that knowledge sharing plays a pivotal role in the relationship between transformational leadership and product innovation, and that transformational leadership would be ideal in an educational context, promoting knowledge sharing activities and influencing product innovation in the private HE sector in Iraq. The research has developed some guidelines for researchers as well as leaders and provided evidence to support the use of transformational leadership and knowledge sharing to increase product innovation within higher education in developing countries particularly Iraq. The implications of the findings and suggestions for future research are discussed.
Keywords- Transformational leadership, Knowledge sharing, product innovation, structural equation modelling, quantitative approach