Effective leadership and knowledge sharing have been recognized as critical components of organizational success; however, their direct and mediated relationships with business performance have remained insufficiently explored. In this study, Structural Equation Modeling (SEM) was employed to investigate the impact of leadership styles and knowledge-sharing practices on business performance. Data were collected through a structured questionnaire and analyzed using SPSS version 27. It was found that knowledge-sharing behavior was significantly influenced by effective leadership, which, in turn, contributed to improvements in business strategy and performance. Furthermore, the relationship between leadership and business performance was shown to be mediated by knowledge-sharing behavior. The findings indicated that organizations characterized by strong leadership and a culture of information sharing demonstrated superior strategic and operational performance. The proposed hypotheses were supported through regression analysis, and the measurement model’s validity and reliability were confirmed by confirmatory factor analysis. These results underscore the importance of promoting knowledge-sharing practices within organizations and suggest that leadership plays a pivotal role in facilitating such behavior. The intermediary role of knowledge sharing in the management-performance dynamic was further elucidated, offering practical insights for enhancing organizational efficiency. The study highlights the necessity for organizations to adopt leadership approaches that cultivate a culture of knowledge exchange, as such practices have been shown to positively affect business performance. Firms that prioritize leadership effectiveness and encourage open knowledge flows are more likely to thrive in competitive markets. These findings offer strategic recommendations for companies seeking to strengthen their performance through the development of leadership models that support effective knowledge sharing, ultimately contributing to sustained organizational success.
Rampal et al. (Sat,) studied this question.