Does transformational leadership matter for innovation in banks? The mediating role of knowledge sharing

Purpose This paper aims to examine the mediating role of knowledge sharing (KS) on the relationship between the transformational leadership (TL) and innovation in banks. Design/methodology/approach Quantitative analysis was conducted by using the structural equations modeling with AMOS 24 to examine the influence of the mediating role of KS on the TL–innovation relationship. Data were collected from 310 employees at 27 banks in Lebanon. Findings The research highlights that leaders exhibiting transformational behavior were able to promote knowledge-sharing culture that enhances the generation of new ideas, products and processes. The findings confirmed that KS mediates the association of TL and innovation. Practical implications The findings point to how TL mobilizes employees to engage in innovative products and processes by encouraging a knowledge-sharing culture. Originality/value The research findings advance the understanding of how TL stimulates innovation and highlights the benefits gained by cultivating KS to generate more innovative outcomes.