International Journal of Organizational Leadership

Abstract

This research examines the impact of transformational leadership (TL) and social interaction (SI) on organizational performance (OP) in the perspective of knowledge management (KM) within Pakistan’s banking sector. In developing countries, knowledge management (KM) is highly practiced but in Pakistan it is a new concept and at the initial stages of its implementation. The situation of Pakistan’s banking sector is better than other services sectors. Therefore, Pakistan’s banking sector is opted as population of the study. Using the simple random sampling technique, 350 questionnaires were distributed in different bank’s branches. The questionnaires were filled by two officer’s rank of employee, i.e., top level managers and middle level managers. Totally, 270 questionnaires were fully completed and used for final analysis. The overall response rate was 77%. Different statistical techniques were applied on the collected data, i.e., Reliability analysis, Pearson’s correlation, Regression analysis and Sobel test. The results indicated that there is a positive relationship among transformational leadership, social interaction, knowledge management, and organizational performance. Furthermore, knowledge management acted as partially mediator between transformational leadership, social interaction and organizational performance. Additionally, current research provides guidelines to the management of banking sector of developing countries specially Pakistan that how transformational leadership, social interaction and knowledge management can improve the organizational performance.