The impact of leadership on trust, knowledge management, and organizational performance

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.