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Current research aims to develop and test a conceptual framework that poses attention to
individuals‟ personality as a potential predictor of their knowledge creation capability,
considering the mediating effect of transformational leadership. According to an estimate,
poor knowledge management costs Fortune 500 companies‟ huge annual losses through
taking a toll on their efficiency and productivity. Thus knowledge management is crucial
for organizations, and various ways to improve knowledge creation and management
need to be studied. In this regard, current research uses Nonaka‟s knowledge creation
theory to study the knowledge creation capability in organizations as a consequence of
managers‟ personality and leadership style. Cross-sectional data was collected from
middle level managers working in thirteen different organizational sectors from Pakistan.
Covariance based structural equation modeling was used to test hypotheses. All scales
were found reliable; however, measurement models were re-specified to improve the
construct validity. Through SEM, this research revealed that openness, agreeableness and
extraversion have direct influence on knowledge creation capability. Furthermore,
transformational leadership mediates the relationship between all the Big-Five
personality traits and knowledge creation capability. Therefore, to develop knowledge
creation capability of managers, organizations should rethink their organizational
procedures to put in place such recruitment, selection, and training & development
practices that are oriented towards managers‟ personalities and their leadership styles. To
the best of our knowledge, this is the first study that identifies Big-Five personality traits
as antecedents of knowledge creation capability, incorporates transformational leadership
in the model, and tests these relationships empirically. It also provides valuable insights
in the domain of knowledge management among middle level managers of various
Pakistani firms.
Umer Ayub, Fizza Kanwal, A Rashid Kausar. (2019) Developing Knowledge Creation Capability: The Role of Big-Five Personality Traits and Transformational Leadership, Pakistan Journal of Commerce and Social Sciences, Volume 13, Issue 1.
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