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Given the important role of frugal innovation for firms in the developing and emerging countries, the purpose of this paper is to investigate the effect of transformational leadership (TL) on frugal innovation through the mediating roles of tacit and explicit knowledge sharing.

The paper used a quantitative research method and structural equation modeling to test the relationship among the latent factors based on a sample of 339 participants from 120 Vietnamese firms.

Findings reveal the significant impacts of TL on aspects of frugal innovation, namely, frugal functionality, frugal cost and frugal ecosystem. Moreover, the paper highlights the mediating roles of tacit and explicit knowledge sharing (KS) in the relationship between TL and frugal innovation in terms of frugal functionality and frugal cost.

To bring a deeper understanding of the benefits and important role of knowledge resources, future research should investigate the potential mediating mechanisms of knowledge management processes in the relationship between specific leadership styles and frugal innovation.

The paper provides a valuable understanding and novel approach for managers and directors of firms in developing and emerging countries to improve their firms’ frugal innovation capability through leadership practice and knowledge resources.

This study contributes to bridging research gaps in the literature and advances the insights of how TL directly and indirectly fosters frugal innovation via mediating roles of tacit and explicit KS.

The purpose of this study is to clarify the effects of transformational leadership (TL) on radical and incremental innovation through the mediating roles of knowledge sharing (KS) behaviors. This study also attempts to bring deeper insight of the correlation among the latent factors by examining how knowledge-centered culture (KCC) moderates the effects of TL on KS behaviors and innovation capability.

This study conducts a questionnaire survey and Structural Equation Modeling to test the proposal research model based on a sample of 321 participants in 85 service and manufacturing firms.

The results revealed that KS behaviors significantly mediate the relationship between TL and two types of innovation. Specifically, knowledge collecting has more significant effect on incremental innovation compared with influence of knowledge donating. By contrast, knowledge donating has a greater effect on radical innovation compared with effect of knowledge collecting. The paper also highlights the important role of KCC in enhancing the effects of TL on KS activities and innovation capabilities.

The study has highlighted the important role of KCC as it positively moderates the influences of TL on KS and innovation capability.

The study provides evidence that TL style is the main driving force of KS processes. Managers should prioritize practicing this leadership style to improve employees' KS behaviors and firm's innovation capability.

The study significantly fills the gaps in the literature that emphasizes how KS behaviors induce different impacts on specific aspects of innovation capability. By exploring the moderator of KCC, the paper significantly contributes to advancing the understanding of how transformational leaders foster employees' KS behaviors for improving radical and incremental innovation.

Due to the vital role of innovation for firms to respond effectively to the rapid changes of business environment, the purpose of this study is to explore the influence of transformational leadership (TL) on innovation capability of firms via mediating role of knowledge management capability (KMC). It attempts to deepen insight on the moderating mechanism of innovation culture (IC) in enhancing the effects of KMC on two specific aspects of innovation capability namely product and process innovation.

The paper utilized structural equation modeling (SEM) and cross-sectional design to test hypotheses in the proposed research model using data collected from 339 participants in 75 manufacturing and service firms in China.

The findings indicate that TL directly or indirectly affect firm's innovation via mediating role of KMC. The findings highlight that influences of KMC on aspects of innovation capability are different and depended on the degree of innovative climate in an organization.

Future research should examine the mediating mechanisms of knowledge acquisition, knowledge sharing and knowledge application to provide deeper insight on specific roles of knowledge management's constituents in linking TL and innovation capability.

This study contributes to bridging research gaps in the literature and advancing the insights of how TL directly and indirectly fosters product and process innovation via mediating roles of KMC. By investigating moderating role of IC, this study has provided the valuable initiatives and integration view of a new mechanism to foster specific dimensions of innovation capability of firms in developing and emerging market.