Mobilising intellectual capital for sustained advantage: How transformational leadership mediates the knowledge-based views effect on firm performance in airlines

This study examines the mechanisms through which knowledge-based resources are translated into organisational effectiveness within the highly regulated, knowledge-intensive context of the aviation industry. Addressing a vital theoretical lacuna within the Knowledge-Based View (KBV)—namely, the ‘black box’ of value realisation—the research develops a mediation model in which transformational leadership (TL) operationalises explicit and tacit knowledge (EX and TAC) to enhance firm performance (FP). Drawing upon survey data from 235 senior executives in Thailand's airline sector, the study employs Structural Equation Modelling (SEM) as the primary analytical framework, with the PROCESS macro utilised to corroborate the robustness of the findings. The empirical results indicate that, whilst both knowledge dimensions contribute to performance, TL serves as a critical, albeit partial, mediating mechanism. Notably, the influence of tacit knowledge on leadership is substantially stronger than that of explicit knowledge, revealing a pronounced asymmetry in resource mobilisation. The study makes three key contributions: (i) it conceptualises TL as a micro-foundational mechanism that activates latent knowledge assets; (ii) it refines the KBV by delineating the distinct functional roles of tacit and explicit knowledge; and (iii) it establishes salient boundary conditions within an emerging-market context. From a practical perspective, the findings advocate a strategic portfolio approach—integrating knowledge codification, tacit capability development, and leadership cultivation—to strengthen operational reliability and adaptive resilience.