Knowledge
Sharing: Organizational Culture And Transformational
Leadership
Rabia Mushtaq¹, Rahat Hussain Bokhari²
¹ International Islamic University, Islamabad ,
Pakistan , ² Quaid-i- Azam
University , Islamabad
Pakistan
ABSTRACT:
In existing study, relationship among organizational culture,
transformational leadership and outcome such as knowledge sharing has been
identified. Theoretical framework was proposed to explain the impact of both
organizational culture and transformational leadership on knowledge sharing. Data
collected from banking sector in
Keywords: Organizational culture, Transformational leadership,
Knowledge management, Knowledge sharing
1. Introduction
Knowledge management is not a plain system but includes knowledge generation, storage, representation, and also sharing. Usually cultural factors influence upon the features and functions of knowledge management (KM) (Branch, 1997). Current research on organizational learning and knowledge creation signifies that knowledge sharing is profoundly influenced by cultural values of organizational employees (Hutchings and Michailova, 2004; Hofstede, 2001). Without sharing knowledge, all the specialized resources and capabilities of business network members are useless. Thus, knowledge sharing is a critical for relative competitiveness of any organization (Hakansson, 1993). However, Culture is a very complex phenomenon (Swidler, 1986). There are various cultural layers in which national culture, organizational or business culture and professional culture are more prominent. All cultures have profound affect on an individual’s behavior in a specific context (Kale, 1996).
The circulation of knowledge creates a knowledge flow that, through various processes of transformation creates new knowledge that, when applied creates essential competitive advantage for the organization (Nonaka and Takeuchi, 1995). For that purpose, the presence of good leadership is also required to enable the organization to integrate, share and use this knowledge innovatively. Leadership style has been highlighted as a strategic factor influencing innovation and knowledge sharing (Nonaka and Takeuchi, 1995). Transformational leadership, unlike transactional leadership, stimulates innovation and knowledge sharing among the employees of their organizations (Howell and Avolio, 1993). Transformational leaders encompass charisma, inspiration, intellectual stimulation and individualized consideration for their employees (Bass and Avolio, 2000). Such type of leaders encourages explicit communication networks and a spirit of trust, enabling transmission and sharing of knowledge (Slater and Naver, 1995). Leadership is often expected to play a major role in knowledge-intensive organizations. While it has become a commonplace to claim that leadership is more important in knowledge creation, sharing, and exploitation than management, the nature of this claim is seldom analyzed in the context of management of research organizations.
Thus, in this research it is tried to identify the cumulative impact of cultural factors as well as transformational leadership style on the knowledge sharing in the organization. In this study Pakistani organizational culture is focused and specifically sample from banking sector is taken for study this relationship.
There are two research questions that are endeavored to explore, which are:
1. Does organizational culture influence knowledge sharing?
2. Does transformational leadership promote knowledge sharing activity?
2. Literature Review
2.1. Organization Culture And Knowledge Sharing
Sharing of knowledge requires active interaction among individuals (Wenger et al., 2002). Knowledge sharing thus refers to sharing not only codified information, but also beliefs, images, experiences and contextualized practices that are personalized information (Ambrosini and Bowman 2001). Through this sharing among the organizational members mutual understanding can be developed (Nonaka and Takeutschi, 1995). Cultural factors influence to the communication and success potential of an organization (Brouthers et al., 1995). As different cultural layers exist in which national culture, the organizational and the professional culture are included. The focus of this study is toward organizational culture. Culture focuses on the important understandings of shared norms, values, attitudes and beliefs among the employees. Culture interacts with knowledge sharing in different ways. It identifies what is the worth of knowledge which is exchanged among the employees. It defines the relationship between employee knowledge and organizational knowledge how much they are dependent on each other (Karlsen and Gottschalk, 2004). Wulff and Ginman (2004) argued that the organizations that encourage knowledge-sharing work environment then the employees of those organizations have a propensity to share ideas and insights because they believe that knowledge sharing as a natural part of their job function, rather than they are being forced to share ideas and knowledge. Organizations that desire to improve their knowledge sharing efforts should endeavor to strengthen an environment for employees where they can share ideas and knowledge (Janz and Prasarnphanich, 2003). There are different organizational cultural factors that differ across organizations and they impact knowledge sharing (Bures, 2003). More prominent factors which identified are trust, collaboration, empowerment, politics, power and autonomy. The organizations ability to cultivate and reinforce them will positively force employees to share with others (Delong and Fahey, 2000). Nonaka and Takeutschi (1995) believed that an autonomous individual endeavors for personal development thus increasing the probability of personal growth, knowledge creation and knowledge sharing.
A framework for the implementation of a knowledge management system is consist of three layers in which one are enablers (as the topmost layer), levers (as the middle layer), and foundations (as the bottom layer).The focus of this paper is top layer which is consist of enablers. At the top layer of the framework are the enablers. In the first layer organization’s structure, culture, leadership and environment are included that encourage knowledge development and sharing. Without these enablers knowledge sharing will not be promoted in the organization (Uriarte, 2008).
Culture is essential component of any organization because it can significantly influence the attitudes and behaviors of employees. As a result, culture directly affects the knowledge sharing process in organizations (House et al. 2002).
On the basis of above arguments following hypothesis is generated:
Hypothesis1:
Organizational culture of an organization is positively related with knowledge
sharing.
2.2. Transformational
Leadership And Knowledge Sharing
There are various approaches that can be very useful to motivate people and implementing the plans of an organization. In these numerous approaches one prominent approach is effective leadership. Leadership is often projected to play a major role in knowledge creation, sharing, and exploitation than only management in organization. Leadership is the processes of creating opportunities for an organization.
There are different approaches of leadership including transactional and transformational. Transactional leadership uses the approach of economic exchange and they are not concerned with individual consideration. In contrast, transformational leaders are seen as effective in four important respects: charisma, inspiration, intellectual stimulation, and individualized consideration (Bryman, 1992). Bass (1985) gave the transformational leadership theory and elaborated those four factors that are characteristics of transformational leadership, which are following: in idealized influence employees or followers have blind trust on their leaders; Inspirational motivation leaders motivate to employees to do the best job; intellectual stimulation leaders support the employees to think in new dimension and take part in organizational decision making; individualized consideration leaders treat all the individuals or employees on equity basis.
Transformational leaders have ability to expressively involve their employees in different matters of organization (Humphrey, 2002). Understanding of task importance motivates people to do better work. As Knowledge sharing is the process of transferring information among employees of an organization and developing the capability of its employees for better performing their jobs. In knowledge sharing process, people are the main entity. Knowledge retains in the mind of individuals. Knowledge sharing starts at the individual level, and expands to the group level and then at organizational level. Such a process facilitates the exchange of working experiences, technical know-how between and among individuals. As effectiveness of knowledge sharing is dependent on many factors, among them leadership style is the most important (Xiong and Deng, 2008). Leaders are the persons who established a culture that respects knowledge, reinforces its sharing, retains its people, and builds loyalty for the organization (Bollinger and Smith, 2001).
Leaders are not ultimate source of knowledge they are persons who encourage knowledge sharing. They have ability to facilitate the environment for value-creating knowledge for the potential organizational uses. Now the issue is what kind of leadership behavior would be appropriate for knowledge intensive organizations (Bukowitz and Williams, 1999). Politis (2001) has identified that transformational style is positively correlated with knowledge sharing of employees. Transformational leaders facilitate the search for new opportunities, establishment of a common vision, and guidance of their employees. For searching new opportunities employees’ responsibilities will be increased and their knowledge sharing passion automatically boost up (Bass, 1999). The good leader can understand how much the organization’s members have significant intellectual capacity and tacit knowledge, which can be used during work. Transformational leaders guide others’ to make effective intellectual decisions based on their knowledge (Senge et al., 1994; Nonaka and Takeuchi, 1995).
A framework for the implementation of a knowledge management system is consisted of three layers as it is mentioned above. In this top layer leaders are at the top layer who have crucial role in knowledge sharing. Thus, transformational leaders have main role in knowledge sharing. It can be hypothesized:
Hypothesis 2:
Transformational leaders positively influence to knowledge sharing.
On the basis of above literature we developed a model which is shown below in Figure 1.
Figure 1: Proposed Model
3. Method
3.1. Data Collection And Sample
The data collection was done through onsite administration of a survey to employees who were working in various banks. Random sampling technique was used for data collection. Employees were sent covering letters in which it was mentioned the purpose and scope of the study and it was assured that their responses would be retained completely confidential. Total 200 questionnaires were distributed. Out of 200, only 116 usable responses were received. Thus, total response rate was 58%. Respondents’ minimum age was 22 years, and maximum age was 54 years. 18% were female and 82% were male. All three levels of management were included in the respondents. The tenure of employees was ranged from one year to 30 years.
3.2. Measures
English is the official language for correspondence in all offices of
3.3. Independent Variables
Organization Culture Survey items were based on three cultural traits.
There are four cultural traits out of which three cultural traits have been
selected in which involvement, adoptability, consistency and mission are
included. The items of culture traits are drawn from the Denison Organizational
Culture Survey by making some amendments according to the culture of Pakistani
organizations (Denison and Mishra 1995, Denison et al. 2002). Organizational
culture was calculated through averaging the responses to the three traits (involvement, adoptability and consistency). The reliability of this scale was .82.
Transformational leadership Bass
and Avolio (1996) Multifactor Leadership Questionnaire was used to examine
transformational leadership construct. Total 12 items were included for checking
this leadership style. To reduce the biasness of results many modification were
done in questionnaire and employees reported about the traits of their boss as
well as questionnaire was also filled by higher authorities also. Thus, the
response was attained from all level of organization.
The reliability of this scale
was .71.
3.4. Dependent Variable
Knowledge sharing Four items
scale of Bock and Kim (2002) was used for measuring knowledge sharing. It is widely
used measure. The reliability of this scale was .78.
Control variables one-way
analyses of variance revealed significant differences in mean values of dependent variables across income level (F =
6.41, p < .01). Four
dummy variables were created to control for effects of income level. Similarly,
differences existed across education levels (F = 2.71, p < .01). Therefore, an effect of education levels
was also controlled by creating four dummy variables. There were no differences in responses across
other variables such as gender and age.
3.5. Results
Table 1
shows the descriptive statistics and correlation among the variables. Following
observed correlations did not depict any unexpected association. As expected,
organizational culture and transformational leadership are positively related
with knowledge sharing.
Table 1:
Mean, Standard Deviation, And Correlations
|
|
Mean |
S.D |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
|
1.Age |
32 |
4.0 |
|
|
|
|
|
|
|
|
|
|
|
|
2.Gender |
1.6 |
.45 |
|
|
|
|
|
|
|
|
|
|
|
|
3.Occupation |
4.9 |
.20 |
|
|
|
|
|
|
|
|
|
|
|
|
4.Income level |
3.0 |
4.4 |
|
|
|
|
|
|
|
|
|
|
|
|
5.Education |
3.2 |
.81 |
|
|
|
|
|
|
|
|
|
|
|
|
6.Designation |
2.2 |
.41 |
|
|
|
|
|
|
|
|
|
|
|
|
7.Tenure in current
organization |
6.5 |
2.0 |
|
|
|
|
|
|
|
|
|
|
|
|
8.Total Experience |
8.0 |
4.8 |
|
|
|
|
|
|
|
|
|
|
|
|
9.Organization culture |
5.0 |
.70 |
|
|
|
|
|
|
|
|
(.82) |
|
|
|
10.Transformational
leadership |
4.8 |
.63 |
|
|
|
|
|
|
|
|
|
(.71) |
|
|
11.Knowledge sharing |
4.2 |
.40 |
|
|
|
|
|
|
|
|
|
|
(.78) |
N=116; alpha reliabilities are shown
in parenthesis. 
<.001, 
<.01,
<.05
For testing of hypotheses multiple linear regression applied. Control
variables entered in the first step followed by the organizational culture and
transformational leadership in the next step. Results of the regression
analyses presented in Table 2 show that organization culture and transformation
leadership was significantly related with knowledge sharing respectively (β =. 40, p <. 05), (β =
.54, p < .001). Organizational
culture explained 16% variance in knowledge sharing (
=. 16, p < .05), 11% changed incurred in knowledge sharing due to
transformational leaders (=. 11, p < .05). These results provide good support to hypotheses 1,
2.
Results of regression analyses for
the main effects have shown in Table 2.
Knowledge
Sharing Predictor β Step 1 Controls Step 2 Organization culture
Transformational leadership
Table 2. Result Of
Regression Analysis For The Main Effects Of Organizational Culture And
Transformational Leadership On Knowledge Sharing.
N=116; Control variables are income
level of employees and educational level.<.001,
<.01, <.05.
4. Discussion
And Conclusion
Organizational culture, transformational leadership and knowledge sharing are
important variables in Knowledge Management research but their relationship is
not checked in this way. Culture is considered as important variable in
knowledge management research but specifically organization culture have never
get due attention. As well at broader level leadership style is considered
important construct for knowledge sharing but specifically transformational
leadership is not highlighted in proper way. In this study, impact of
independent constructs organizational culture and transformational leadership
is checked on knowledge sharing. A theoretical background is developed and on
the basis of that background these relationship is checked in a new cultural
setting using a sample from different organizations but from same sector to find
out that hypotheses is supported or not.
Both of the hypotheses were supported very well. According to literature
support both constructs are positively related with knowledge sharing of
employees in organization. Due to organizational culture factors knowledge
sharing will be boosted up.16% variance is shown in the knowledge sharing due
to organizational culture. As well as transformational leadership role in
knowledge sharing is also not ignore able, is .11, which shows strong positive variance
in knowledge sharing. Both of the questions are answered very well, which are
asked in start.
These results depicted that organization culture and leadership style plays pivotal role in knowledge sharing activity of an organization. That knowledge can be considered important source to get competitive advantage in any organization. These elements should be kept in mind by the organizations. This is the best way to flourish for them.
5. Limitation Of The Study
Due to time limitations, response rate is low. If response rate was higher
then better results could be derived. Secondly, data was collected from only
one sector, which was banking sector of
6. References
Ambrosini, V. and Bowman, C. (2001).
Tacit Knowledge: Some Suggestions for Operationalization. Journal of Management Studies, 38 (6), 811-829.
Bass, B. M. (1999). Two Decades of
Research and Development in Transformational Leadership. European Journal of Work and Organizational Psychology, 8 (1),
932.
Bass, B. M. (1985). Leadership and
Performance Beyond Expectation. The Free
Press,
Bass, B. M., and Avolio, B. J.
(2000). The Multifactor Leadership Questionnaire – 5X Short Form.Redwood City, CA:
Bass, B. M., & Avolio, B. J. (1996)
Multifactor Leadership Questionnaire.
Bock, G. W. and Y. G. Kim (2002). _Breaking the Myths of Rewards: An Exploratory Study of Attitudes about Knowledge Sharing. Information Resources Management Journal, 15(2), 14–21.
Bollinger, A. S. & Smith, R. D.
(2001). Managing Organizational Knowledge as a Strategic asset. Journal of Knowledge Management, 5(1),
8-18.
Branch, R.M. (1997). Educational
Technology Frameworks that Facilitate Culturally Pluralistic Instruction. Educational Technology, 37 (2), 38-41.
Brouthers, Keith D. (1995).
Strategic Alliances: Choose Your Partners.
Long Range Planning, 28(2), 18-25.
Bukowitz, W. & Williams, R.
(1999). Looking Through the Knowledge Glass. CIO Enterprise. Section 2, 81-85.
Bures, V. (2003). Cultural Barriers
in Knowledge Sharing. Economics and
Managemen, 6, 57-62.
Bryman, A. (1992). Charisma and
Leadership in Organizations. Sage:
De Long, D. W. and L. Fahey (2000),
Diagnosing Cultural Barriers to Knowledge Management.Academy of Management Executive, 14 (4),
113-128.
Denison.D.R. and Mishra.A.K. (1995).
Toward a Theory of Organizational Culture and Effectiveness.Organizational Science, 6(2), 204-223.
Håkanson, H. (1993). Networks as a
Mechanism to Develop Resources in Networking in Dutch Industries. P. Beije, J Groeneppen and O. Nuys, eds.
Leven Apeldorn:Granat.
Hofstede, G. (2001), Culture’s
Consequences: Comparing Values, Behaviors, Institutions and Organizations
across Nations. Sage Publications,
2nd ed,
House, R., Javidan, M., Hanges, P.,
and Dorfman, P. (2002). Understanding Cultures and Implicit Leadership Theories
Across the Globe: An Introduction to Project GLOBE. Journal of World Business, 37(1), 3-10.
Howell, J. M. and B. M. Avolio
(1993). Transformational Leadership, Transactional Leadership, Locus of Control
and Support for Innovation: Key Predictors of Consolidated Business Unit
Performance. Journal of Applied
Psychology,78(6), 891–902.
Humphreys, J. H. (2002)
Transformational Leader Behaviour, Proximity and Successful Service
marketing. Journal of Service Marketing, 16 (6), 487-502.
Hutchings, K. and Michailova, S.
(2004). Facilitating knowledge Sharing in Russian and Chinese subsidiaries: The
Role of Personal Networks and Group Membership. Journal of Knowledge Management, 8(2), 84-94.
Janz, B.D. and Prasarnphanic, P.
(2003). Understanding the Antecedents of Effective Knowledge Management: The
Importance of a Knowledge-Centered Culture. Decision
Science, 34 (2), 351-384.
Kale, S. (1996). How National
Culture, Organizational Culture and Personality Impact Buyer Seller
Interactions. in International Business
Negotiations, Ghauri, Pervez and Jean Claude Usunier, eds.
Karlsen, J. T. and P. Gottschalk
(2004). Factors Affecting Knowledge Transfer in IT Projects. Engineering Management Journal, 16(1),
3.
Nonaka, I. And H. Takeuchi (1995). The knowledge-creating company: How Japanese
Companies Create the Dynamics of Innovation.
Politis, J. D. (2001). The
Relationship of Various Leadership Styles to Knowledge Management. Leadership & Organization Development
Journal, 22(8), 354-364.
Raja, U and Johns,G.(2010). The
Joint Effects of Personality and Job Scope on in-role Performance, Citizenship
Behaviors and Creativity. Human Relations
XX(X), 1–25.
Senge, P., C. Roberts, Ross, R. B.,
Smith, B. J. and Kleiner, A. (1994). The
Fifth Discipline Fieldbook.
Slater, S. F. and J. C. Naver
(1995). Market Orientation and the Learning Organization. Journal of Marketing, 59 (3), 63–74.
Swidler, A. (1986). Culture in Action: Symbols and Strategies. American Sociological Review, 51(2),
273-286.
Uriarte, F. A. J.(2008). Introduction to Knowledge Management.
ASEAN Foundation,
Wenger, E., McDermott, R. and
Snyder, W. (2002). Cultivating Communities of Practice: A Guide to Managing
Knowledge.
Wulff, W.G. and Ginman, M. (2004).
Explaining Knowledge Sharing in Organizations Through the Dimensions of Social
Capital. Journal of Information Science,
30(5), 448-458.
Xiong,S. and Deng,H.(2008). Critical
Success Factors for Effective Knowledge Sharing in Chinese Joint Ventures. 19th Australasian Conference on Information
Systems,1089- 1098.
Contact the Authors:
Rabia Mushtaq, Registration No:
22-FMS/PHDMGT/S1O, International Islamic University Islamabad
Rahat Hussain Bokhari, Quaid-i-