The impact of leadership on trust, knowledge management, and organizational performance: A research model

Abstract

Purpose

The purpose of this paper is to build a research model that examines the impact of leadership on trust, knowledge management and organizational performance.

Design/methodology/approach

An instrument containing six constructs (leadership: leading organization; leadership: leading people; leadership: leading self, trust, knowledge management and organizational performance) was designed and administered to subjects from all levels of management in various organizations in nine regions of the USA. Collected data were analyzed using partial least squares path modeling to test the hypotheses.

Findings

The study’s findings revealed positive and significant linear connection among leadership (leading organization, leading people and leading self), trust, knowledge management and organizational performance.

Practical implications

The findings imply that effective leadership (leading organization, leading people and leading self) contributes to elevated trust among people, promotes the successful implementation of knowledge management processes, and in turn enhances organizational performance. Therefore, leadership training and development must be a top strategic priority for any organization.

Originality/value

This study enriches the literature by demonstrating that effective leadership stands as the bedrock of the elevated trust, the successful knowledge management processes and the enhanced organizational performance.

Citation

Koohang, A., Paliszkiewicz, J. and Goluchowski, J. (2017), "The impact of leadership on trust, knowledge management, and organizational performance: A research model", Industrial Management & Data Systems, Vol. 117 No. 3, pp. 521-537. https://doi.org/10.1108/IMDS-02-2016-0072