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The Role of Transformational Leadership in Intra-Organizational Knowledge Transfer Process: Empirical Study in Telecommunication Companies in Algeria

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The Role of Transformational Leadership in Intra-

Organizational Knowledge Transfer Process: Empirical Study in Telecommunication Companies in Algeria

CHAABANE Mohamed1*

1 Faculty of Economics, Management, and Commercial Sciences, University of M'hamed BOUGARA Boumerdès, Algeria

*Corresponding Author: [email protected] Accepted: 15 June 2021 | Published: 1 July 2021

__________________________________________________________________________________________

Abstract: Knowledge is power, this saying has never been truer than today. All organizations are invited to effectively and efficiently manage their knowledge to maintain competitive edge.

Knowledge management relies on many operations, among which knowledge transfer.

Organizations should create and maintain favorable organizational climate for intra- organizational knowledge transfer. Leadership is one of the key components of organizational climate. The current study investigates precisely the possible impact of one style of leadership, which is transformational leadership on intra-organizational knowledge transfer process in Algerian telecommunication companies. In addition, this paper aims at recognizing the importance of each dimension of transformational leadership in transferring organizational knowledge between organization members. A quantitative survey method was applied, and five hypothesized relationships were tested with a sample of 204 employees in three companies specialized in telecommunication. The results suggest that transformational leadership and its dimensions are positively and significantly related to intra-organization knowledge transfer process in Algerian telecommunication companies. Therefore, transformational leadership is a key driving force to enable and stimulate individuals to undertake intra-organizational knowledge transfer process.

Keywords: Knowledge, Knowledge Transfer, Knowledge Transfer Process, Leadership, Transformational Leadership

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1. Introduction

Today’s organizations are knowledge intensive entities. Knowledge is deemed as the most important strategic asset in any organization and an important resource for achieving sustainable competitive advantage.

Knowledge is generally seen as one of the most, if not the most, important asset in organizations that should be conscientiously managed (Argote, McEvily, and Reagans 2003; Teece 1998).

Davenport and Prusak (1998) described knowledge as a blend of experience, values, contextual information, and expert insight that provides a framework for evaluating and incorporating new experience and information. Knowledge grows continuously as the employee and the organization adapt to changes from the internal and the external environment (Siakas and Georgiadou, 2006).

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The Knowledge-based view of the firm relies on the resource-based view of the firm, which suggests that firms’ competitive advantages stem mainly from internal resources and capabilities (Wernerfelt, 1984).

Employees’ knowledge is known as the intellectual capital of the organization. However, Knowledge is lost when organizations are restructuring and when employees retire or leave their jobs. Furthermore, project based organizations are becoming a major challenge for successful knowledge transfer. Thus, the high staff turnover increases the leakages of organizational knowledge and decreases the learning efficiency of the organization.

Therefore, critical knowledge is lost due to lack of knowledge transfer1 between organization members. Knowledge should be transferred across the organization and retained properly to be used by organization in order to compete effectively against its rivals. Knowledge transfer is amongst the main components of knowledge management activities. According to Bhirud, et al, “the success of knowledge management in the organization depends on effective knowledge-sharing” (2005, p. 4).

Lack of knowledge transfer across the organization has a negative impact on both employee and organizational performance (Ponzi and Koening, 2002, McElroy, 2003). The stickiness of knowledge to its holders’ minds is one of knowledge attributes. The stickiness level rose with tacit knowledge, which is the most valuable type of knowledge. As Michael Polanyi (1966) described tacit knowledge by saying: “we know more than we can tell”.

Thus, Knowledge is deeply embedded in individuals’ minds, as well as many tacit knowledge holders are not even aware of what they have of knowledge. The most widespread type of organizational knowledge is tacit knowledge, which requires particular management.

Based on the above mentioned facts, and in order to boost the knowledge transfer between organization’s members we need to focus on the knowledge holders, which are individuals (employees). From this perspective, the organization needs to look for improving satisfaction for its employees to guarantee their responsiveness towards its requirements. And among these requirements is intra-organization knowledge transfer.

The organization climate is considered as one of the determinants in employees’ satisfaction.

Organizational climate encompasses numerous elements. By virtue of the difficulty pertains to analyze all elements of organizational climate at once, the current study focused on one key component of organizational climate, which is leadership. Leadership has a key role in the management of human resources, as well as its plain effect on employees’ behaviors.

Leadership is the power of motivating a group of people to act toward achieving a common goal. In a business setting, this means directing workers and colleagues with a strategy to meet the company's needs.

"Leadership is a process of influence between a leader and those who are followers.” Hollander (1978, p.1).

"Leadership is a process whereby an individual influences a group of individuals to achieve a common goal."- Northouse (2004, p 3).

1 In the current study, Knowledge transfer and knowledge sharing are used synonymously.

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Thus, leadership is a social influence process in which the leader seeks the voluntary participation of subordinates in an attempt to reach organization goals. In view of the fact that leadership is a large domain of study, as well as it has different styles. The current study focused on one style of leadership, which is transformational leadership to investigate its role in knowledge transfer process for the telecommunication companies in Algeria.

Telecommunication sector in Algeria has been chosen as a field to conduct the empirical study, and that due to different reasons, among which the high-density of knowledge in this sector of activity, and its rapid rate of growth in Algeria.

Research Objectives

The present paper aims to fulfill three main objectives. First, the study tries to investigate the extent of transformational leadership practice by managers of Algerian telecommunication companies. Second, it tends to evaluate the level of knowledge transfer in Algeria communication companies.

The third objective of the current study is about examining relationship between transformational leadership and intra-organizational knowledge transfer process in Algerian telecommunication sector.

Research questions

Based on the objectives of the study, the primary questions formulated are as follows:

1) To which extent the managers of Algerian telecommunication companies adhere transformational leadership style?

2) To which extent the intra-organizational knowledge transfer is practiced in Algerian telecommunication companies?

3) What is the effect of transformational leadership on the intra-organization knowledge Transfer process in telecommunication companies based in Algeria?

2. Literature Review 2-1 Knowledge Transfer

Knowledge transfer is a process in which knowledge gained by an employee or unit is shared with other employees or units through a systematic network. Knowledge transfer is a dyadic exchange of organizational knowledge between a source and a recipient unit in which the identity of the recipient matters (Szulanski, P28, 1996).

Knowledge transfer is seen as a process (not a one-time act) in which an organization recreates a complex, causally ambiguous set of routines in new settings and keeps it functioning.

This conceptualization of the transfer stands in sharp contrast to theoretical conceptualizations of knowledge transfers as a one-shot, costless and instantaneous act that aims to reproduce precisely a quantum of knowledge that is known perfectly at its source for example, Nelson talks about the technology diffusing instantaneously and costlessly (Szulanski 2000, p.5).

The Communication Model of knowledge transfer

Many knowledge transfer models exist. The present study focuses on communication model of knowledge transfer developed by Szulanski (1996, 2000). The communication model is one of the most cited in existing literature as well as is suitable for examining the transfer of knowledge among individuals and/or units within an organization.

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In the communication model (figure 1), transfer is considered as a message transmission from a source to a recipient in a given context. The process follows four stages, which are:

1- Initiation, 2- Implementation, 3- Ramp-up, and 4- Integration.

Figure 1: The Knowledge Transfer Process

Source: Szulanski, G. 2003, Sticky Knowledge: Barriers to Knowing in the Firm, London: Sage

1- Initiation

This phase comprises all events that lead to decision to transfer. In initiation stage, organizational participants need to be aware that this knowledge exists within the context of the organization and they need to be aware that it may be possible to use this knowledge to address their needs. In addition, employees need to know what knowledge they are in need, to whom that knowledge belongs to, as well as employees are called to be able to know how, when and where the knowledge can be used to fulfill the purpose of implementing the knowledge transfer process (Szulanski 1996).

2- Implementation

This stage begins with decision to proceed. Once the decision to transfer knowledge has been taken, knowledge can be released by one party and received by the other. In this stage, the adaptation of the knowledge occurs in both the sources and recipients.

The implementation stage of knowledge transfer commences once a transfer decision is made.

It encompasses the flow of knowledge resources from source to recipient, establishing social ties between recipient and source, customizing the transfer to suit recipient needs, and avoiding problems that may have been encountered in previous transfers (Thi Bich Ngoc Pham 2008, Szulanski 1996).

3- Ramp-up

The ramp-up stage begins when the recipient starts using the transferred knowledge, i.e., after the first day of use. In this stage, the new knowledge will be proved valuable in a different context. The recipient of the knowledge starts to apply the knowledge to solve problems in their daily work. In Ramp-up stage, the recipient starts to evaluate the knowledge according to its ease of implementation and application, and the success it will bring to solving their problem(s) (Thi Bich Ngoc Pham 2008, Szulanski 1996).

4- Integration

The integration stage begins after the recipient achieves satisfactory results of applying transferred knowledge. In this stage, the recipient gradually applies the knowledge in solving problems that arise during their work. Use of the transferred knowledge gradually becomes routine. As the time passes, a shared history is developed and knowledge transfer between the

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sources and the recipients is increased. The knowledge can flow more freely and adds new applications to existing knowledge (Thi Bich Ngoc Pham 2008).

2-2 Transformational Leadership

Leadership is a key driving force to ensure individual and organizational performance towards the right direction. The positive leadership behaviors bring positive work outcomes while negative leadership behaviors threaten the growth and survival of organizations (Drescher 2017).

Transformational leadership is one of the widely spread styles of leadership as well as it is relatively recent style. Transformational Leadership concentrates on the development of followers, and their needs. Managers with transformational leadership style concentrate on the growth and development of value system of employees, their inspirational level and moralities with the preamble of their abilities.

Transformational Leadership inspires and motivates followers to achieve outcomes beyond expectations and helps followers grow and develop by responding to their individual needs (B.

Parker Ellen, 2016). The transformational leadership is coined for the first time by James Macgregor Burns in 1978, who used the term to distinguish between those who led through the exchange of performance for rewards (i.e, transactional leaders) and those who led by inspiring followers to aim for and achieve ambitious goals (i.e., transformational leaders).

Avolio et al. (2004) defined transformational leadership as a leader who is able to inspire workers to go above and beyond the performance they thought they could attain.

The transformational leadership signaled the beginning of a shift towards new perspectives, which focus much more on the interpersonal, inspirational, and visionary leadership.

Dimensions of Transformational Leadership

The full range of leadership introduces four dimensions of transformational leadership, which are as follows (Avolio & Bass, 2004, Savovic 2017):

1- Idealization of Influence (attribute and Behavior) A- Idealization of Influence (attribute)

It is the ability of a leader to influence followers by providing a sense of vision and mission, inspiring pride, respect, pursuit of achievement, and trust. The personal attributes of the leader's charisma are distinguished, which make them respected.

B- Idealization of Influence (Behavior)

Influence the behavior of the followers towards achieving goals and objectives. You get the respect and confidence of your followers. It establishes high levels of moral and ethical conduct.

2- Motivational Inspiration

It refers to the ability to motivate your followers for superior performance. Such leaders tend to be skillful in articulating a vision of the future that followers are able to accept and strive for.

3- Intellectual Stimulation

It stimulates the efforts of its followers to be innovative and creative, assuming questions, rethinking problems. Creativity is stimulated.

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4- Individual Consideration

Leader cares about his/her followers, treats them as individuals, knows them thoroughly, and listens to their ideas and concerns.

2-3 The relationships between Variables

Several previous studies relevant to the current paper were reviewed by the author, and exploited to form the conceptual framework of the present study as well as develop the study’s hypotheses.

Gumusluoglu and Ilsev (2009) found that the role of transformational leaders enhanced organizational innovation. Jung et al. (2003) who studied 32 Taiwanese firms concluded that there was a positive relationship between transformational leadership and organizational innovation. It is important for leaders to use inspirational motivation and intellectual stimulation for organizational innovation (Elkins and Keller, 2003).

Other studies have shown that there is a significant positive relationship between transformational leadership and organizational learning (Senge 1990, Slater and Narver 1995, Silins et al. 2002). Hsiao et al. (2008) have defined transformational leaders as those who employ extraordinary influence over people to transform the notions and attitudes of organization members. Thi Bich Ngoc Pham (2008) investigated the organizational factors influencing intra-organizational knowledge transfer, and examined the relationship between knowledge transfer process, its antecedents and organizational performance.

The main findings showed that intra-organizational knowledge transfer is most affected by organizational culture, incentive system and organizational structure. Thi Bich Ngoc Pham did not investigate the possible effect of leadership on intra-organizational knowledge transfer process. Girdauskienė and Savanevičienė (2012) concluded to the fact that the impact of leadership on knowledge transfer was low in a creative organization. M. Birasnav et al, (2013) empirically investigated the role of transformational leadership and knowledge management process on predicting product and process innovation. The main results of this study showed that transformational leadership has direct influence over product and process innovation, and employees’ day-to-day involvement in the knowledge management process such as acquiring, transferring, and applying knowledge.

Therefore, this study proposes a positive relationship between transformational leadership and Intra-organizational knowledge transfer which is conceptualized in this paper as a process including four different stages; initiation, implementation, ramp up, and integration.

The added value of the current study is stemmed from two main elements. The first element is pertained to the limited number of variables treated in the empirical study. Whereby, the independent variable is one style of leadership, which is transformational leadership. On the other hand, the dependent variable is intra-organizational knowledge transfer. Therefore, that may increase the accuracy of the study.

The second element, as far as Algeria is concerned, library search revealed that, to the best of this study’s knowledge, transformational leadership-knowledge transfer process links have not been addressed, which is a gap that the current paper will attempt to bridge.

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2-4 Research Hypotheses

The present paper was designed to evaluate three main hypotheses (a, b, and c) and several subsidiary hypotheses.

Exploratory interviews have been administered with 13 employees working in telecommunication companies based in Algeria. The interviews were mainly to investigate about the dominant style of leadership applied in workplace by the interviewees’ superiors, and the level of intra-organizational knowledge transfer process in these companies. Considering the analysis of the exploratory interviews, the following hypotheses (a, b) have been developed:

H-a : The Algerian managers of telecommunication companies do not apply high level of transformational leadership towards their followers.

H-b: The level of the intra-organization knowledge transfer is not high in Algerian telecommunication companies.

Base on the previous studies abovementioned, the hypothesis C has been developed along with its subsidiaries (figure 2).

H-c: The transformational leadership affects positively the intra-organizational knowledge transfer in Algerian telecommunication companies.

The hypothesis C could be subdivided into four sub hypotheses, in order to test the relationship between each dimension of transformational leadership and organizational knowledge transfer process.

H c-1 Idealized influence affects positively the intra-organization knowledge process.

H c-2 Inspirational influence affects positively the intra-organization knowledge process.

H c-3 Intellectual stimulation affects positively the intra-organization knowledge process.

H c-4 Individualized consideration affects positively the intra-organization knowledge process.

Figure 2: Research Conceptual Model

Transformational Leadership

Idealized Influence

Inspirational Influence

Intellectual stimulation

Individualized consideration

Intra-organization Knowledge Transfer Process

Ramp-up Implementation

Initiation

Integration H-c

Hc-1

Hc-2

Hc-4

Hc-3

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3. Methods

3-1 The study instrument and measures

The empirical study applied survey method, which is the technique of gathering data by asking questions to who are thought to have desired information. The instrument used to collect data was a survey questionnaire, whose items were self-developed, adapted, and modified (Cresswell 1998, Leedy and Ormrod 2001, Oppenheim 2001) based on previous studies.

Thus, transformational leadership constructs’ items were mainly developed based on multifactor leadership questionnaire designed by Bass and Avolio (1997), Bass and Rigglo (2006). And the organizational knowledge transfer items were self developed based on Szulanski (1996).

The questionnaire contains three parts. The first part dedicated to the participants’ socio- demographic information. The second part is devoted for the transformational leadership, and the last part of the questionnaire measured the organizational knowledge transfer. The table 1 shows the questionnaire’s main constructs.

Table 1: questionnaires main Constructs

Nature Construct Measurement

Items Part 1 General

Information

Socio-demographic 5 Items Part 2 Transactional

Leadership

1- Idealized Influence 2- Inspirational Motivation 3- Intellectual Stimulation 4- Individual Consideration

5 Items 6 Items 4 Items 5 Items Part 3 Organizational

Knowledge Transfer

1- Initiation

2- Implementation 3- Ramp-up

4- Integration

4 Items 5 Items 4 Items 5 Items

The respondents indicates how they generally feel by rating the degree of their feelings on a five-point Likert scale ranging from “Strongly disagree” to “Strongly Agree”. The different scales are as follows: 1=“Extremely Disagreed”, 2=“disagree”, 3= “Moderately agree”, 4=

“Agree”, 5=“Strongly Agree”.

Each construct in the questionnaire is evaluated based on the mean of a relevant set of items, which are scored on five-point Likert scale.

The score of the construct mean could be categorized in three main levels as follows:

A- [1-2.33] low;

B- [2.34 - 3.67] Medium;

C- [3.68 - 5] High 3-2 Data Collection

The unit of analysis for this research is the organization, whereas the unit of observation is the individual, that is, the employee. The participants sampled are employees working in three different companies of telecommunication in Algeria, which are Djezzy, Mobilis, and Ooredoo.

The period of empirical data collection had started in December 2019 and ended in April 2021.

It should be noted that the operation was put on hold for the following period, from: March 2020 until November 2020, due to the lockdown related to Covid 19 pandemic.

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A total of 464 questionnaires were randomly distributed to employees from the above- mentioned companies. The questionnaire was accompanied with a covering letter explaining the purpose of the study and clarifying the meaning of questionnaire’s constructs, as well as providing the assurance of confidentiality for the respondents.

Of the 464 distributed questionnaires, 232 questionnaires completed and returned, Twenty eight questionnaires were rejected due to incomplete responses. As a result, 204 responses were used for data analysis in this study, with a net response rate of 44 %.

3-3 Data Analysis

The data were analyzed using SPSS version 22. The general nature of the current study was descriptive, it tried to describe and evaluate what actually existed in the environment with respect to variables (Borg and Gall 1989). Descriptive analysis such as mean, variance, and standard deviation was used to examine the findings. Inferential statistics such as correlation analysis was used to examine the strength and linear relation between variables. Moreover, simple and multiple regression analysis were used to test the hypothesis that a significant relationship existed between the independent variable(s) (transformational leadership) and the dependent variable (Organizational knowledge transfer).

3-4 Reliability Analysis

To examine the reliability of the instrument, Cronbach’s alpha was calculated to measure the internal consistency for transformational leadership and organizational knowledge transfer.

Table (2) exhibits the reliabilities of different constructs, which ranged between 0.60 and 0.9.

Table 2: the Internal Consistency of Study Constructs

Variable / Construct Cronbach Alpha

Variable / Construct Cronbach Alpha Transformational

leadership

0.836 Organizational Knowledge Transfer

0.902

Idealized Influence 0.649 Initiation 0.855

Inspirational Influence 0.738 Implementation 0.872

Intellectual Simulation 0.619 Ramp-up 0.833

Individual consideration 0.601 Integration 0.906

Source: prepared by the author based on the statistical analysis of empirical data.

Many researchers report that when Cronbach’s alpha passes 0.6 threshold the scale is considered reliable. Thus, all scales of this study had an acceptable reliability.

4. Results

In terms of demographic findings, 60.3% of respondents were male; the remaining 39.7% were females. In terms of age group of respondents, it is important to note that 17.2 % less than 25 years old, whereas 27.5 % fell into 26-35 years old, and the majority of respondents 41.7 % were in range of 36-45 and 13.7 % of respondents were 46 years or above.

Regarding the respondents’ educational level, the majority of whom 95.6% were holders of university degree. In terms of experience, 68 % of respondents had experience between 6-15 years.

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The Transformational Leadership in Algerian Telecommunication Companies

Table (3) lists means, standard deviations, and level of transformational leadership and its different dimensions in study sample. The mean of transformational leadership was 3.09 and the means for its dimensions were ranged between 2.88 for individualized consideration and 3.27 for idealized influence.

Table 3: Transformational leadership in a sample of telecommunication Companies in Algeria

Mean Standard Deviation

Rank Application Level

Idealized Influence 3.27 0.47 1 Medium

Inspirational Motivation

3.08 0.48 3 Medium

Intellectual Stimulation

3.15 0.54 2 Medium

Individualized Consideration

2.88 0.42 4 Medium

Transformational Leadership

3.09 0.37 - Medium

Source: prepared by the author based on the statistical analysis of empirical data

Thus, from the respondents’ perspectives the application level of transformational leadership in study sample was medium.

One samples t-test has been used to test the hypothesis “a”

H-a0 : The Algerian managers of telecommunication companies apply high level of transformational leadership towards their followers.

H-a1 : The Algerian managers of telecommunication companies do not apply high level of transformational leadership towards their followers.

Table 4 indicates the results of one sample t-test, which is used to verify hypothesis “a”.

Table 4: One-sample t-test for Transformational Leadership Level

t-test Significance level (p- value)

Degree of freedom

Mean S.dev

-22.380 0.00 203 3.098 0.371

Significance level (α=0.05)

Source: prepared by the author based on the statistical analysis of empirical data.

The t-test generated -22.380 and p-value was 0.00; less than the 0.05 α level, hence the null hypothesis “a” is rejected.

Therefore, based on study sample mean of the transformational leadership as well as the result of one sample t-test we inferred that the application level of transformational leadership is medium.

The Intra-Organizational Knowledge Transfer in Algerian Telecommunication Companies

Table 5 lists the means, standard deviations, and level of intra-organizational knowledge transfer for the study sample. The mean of organizational knowledge transfer was 2.94 and the means for its stages were ranged between 2.71 for Initiation and 3.20 for Implementation.

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Table 5: Organizational Knowledge Transfer in a Sample of Telecommunication Companies in Algeria

Mean Standard

Deviation Rank Application Level

Initiation 2.71 0.83 4 Medium

Implementation 3.20 0.94 1 Medium

Ramp-up 3.03 0.76 2 Medium

Integration 2.81 0.81 3 Medium

Organizational Knowledge

Transfer

2.94 0.77 - Medium

Source: prepared by the author based on the statistical analysis of empirical data.

Thus, from the respondents’ perspectives the application level of organizational knowledge transfer in study sample was medium. One samples t-test used to test the hypothesis “b”.

H-b0: The level of the intra-organization knowledge transfer is high in Algerian telecommunication companies.

H-b1: The level of the intra-organization knowledge transfer is not high in Algerian telecommunication companies.

Table 6: One-sample t-test for Organizational Knowledge Transfer Level

t-test Significance level (p- value)

Degree of freedom

Mean S.dev

-13.537 0.000 203 2.944 0.775

Significance level (α=0.05)

Source: prepared by the author based on the statistical analysis of empirical data.

Table 6 indicates the results of one sample t-test, which is used to verify the hypothesis “b” of the present study. The t-test generated -13.537 and p-value was 0.00; less than the 0.05 α level, hence the null hypothesis “b” is rejected.

Therefore, the level of the intra-organization knowledge transfer is not high in Algerian telecommunication companies. Thus, Based on study sample mean of the organizational knowledge transfer as well as the result of one sample t-test we inferred that the level of organizational knowledge transfer is medium.

The relationship Between Transformational Leadership and intra-organizational knowledge transfer process

The simple regression analysis2 is used to test the effect of transformational leadership on organizational knowledge transfer process (hypothesis C).

H-c: The transformational leadership affects positively the intra-organizational knowledge transfer in Algerian telecommunication companies.

Table 7 shows the simple regression result.

2 All regression assumptions have been checked.

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Table 7: Results of Simple Regression Analysis for Transformational leadership vs. Organizational Knowledge Transfer

Independent Variable

Dependent Variable

R Correlation

R2 Coefficient of determination

F statistic Regression Coefficient

(t-test)

Transformational Leadership

H C

Organizational Knowledge Transfer process

0.759 0.573 273.898 0.759 16.550**

Supported hypotheses are in bold type.

**p < 0.01, *P < 0.05.

Source: prepared by the author based on the statistical analysis of empirical data.

Table 7 indicates that transformational leadership positively and significantly (p < 0.01) affects organizational knowledge transfer process. Furthermore, transformational leadership contributes significantly to organizational knowledge transfer process and explains 57.3% of its total variance (R2) with the standardized coefficient value (beta) of 0.759.

Thus, the hypothesis H-c has been supported.

The multiple regression analysis3 is used to test the effects of transformational leadership dimensions on organizational knowledge transfer process and stages (sub-hypotheses C-1--C- 4).

Table 8: Results of Multiple Regression Results Analysis for Transformational Leadership Dimensions Vs. Organizational knowledge Transfer Process and Stages

I.V. 4

Transformational Leadership Dimensions

1st Part 2nd Part

D.V.5

Organizational Knowledge Transfer Process (Total)

R2 = 0.585 F= 69.995

Organizational knowledge Transfer Stages Initiation

R2 = 0.511 F= 54.120

Implementatio n

R2 = 0.572 F= 68.845

Ramp-up

R2 = 0.471 F= 46.188

Integration

R2 = 0.552 F= 63.563 Idealized Influence

H C-1

β = 0.234 t = 4.090**

β = 0.221 t =3.588**

β = 0.253 t = 4.398**

β = 0.167 t =2.606*

β = 0.252 t = 4.273**

Inspirational Motivation H C-2

β = 0.276 t =4.309**

β = 0.287 t = 4.171**

β = 0.248 t = 3.854**

β = 0.241 t =3.369**

β = 0.279 t = 4.236**

Intellectual Simulation H C-3

β = 0.341 t =5.571**

β = 0.312 t = 4.735**

β = 0.332 t = 5.390**

β = 0.357 t =5.216**

β = 0.309 t =4.907**

Individual Consideration H C-4

β = 0.112 t =2.074*

β = 0.083 t = 1.435

β = 0.136 t = 2.519*

β = 0.101 t =1.680

β = 0.105 t =1.897 Supported hypotheses are in bold type.

**p < 0.01, *P < 0.05.

Source: prepared by the author based on the statistical analysis of empirical data.

In table (8, 1st part), Individualized influence, inspirational motivation, intellectual stimulation, and individual consideration (independent variables) positively and significantly (P<0.05) affect the dependent variable, which is organizational knowledge transfer process. In addition,

3 All regression assumptions have been checked.

4 Independent Variable.

5 Dependent Variable.

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the transformational leadership dimensions explain 58.5% of the total variance (R2) in organizational knowledge transfer.

Table (8,2nd part) shows the results of multiple regressions between transformational leadership dimensions, as independent variables and organizational knowledge transfer stages, as dependent variables.

Table (8, 2nd part) indicates that idealized influence positively and significantly (p<0.05) affects all organizational knowledge transfer stages. The standardized coefficients (beta) with each organizational knowledge transfer stage (initiation, implementation, ramp-up, and integration) are 0.221, 0.253, 0.167, and 0.252 respectively. Thus, the hypothesis C-1 is supported.

Table (8, 2nd part) shows that Inspirational Motivation positively and significantly (p<0.05) affects all organizational knowledge transfer stages. The standardized coefficients (beta) with each organizational knowledge transfer stage (initiation, implementation, ramp-up, and integration) are 0.287, 0.248, 0.241, and 0.279 respectively. Thus, the hypothesis C-2 is supported.

Table (8, 2nd part) shows that intellectual stimulation positively and significantly (p<0.05) affects all organizational knowledge transfer stages. The standardized coefficients (beta) with each organizational knowledge transfer stage (initiation, implementation, ramp-up, and integration) are 0.312, 0.332, 0.357, and 0.309 respectively. Therefore, the hypothesis C-3 is supported.

In table (8, 2nd part) where organizational knowledge transfer process is the dependent variable, individual consideration is the independent variable affects it positively and significantly (p<0.05). While table (8, 2nd part) shows that individual consideration did not significantly affect (p>0.05) three stages of knowledge transfer process, which were initiation, ramp-up, and integration. On the other hand, individual consideration only affected one stage, which was implementation (p<0.05) with standardized coefficient (beta) of 0.136.

Based on the above discussion, hypothesis C-4 is partially supported since individualized consideration affected one fourth of organizational knowledge transfer stages.

5. Discussion and Conclusion

The current study’s goal is threefold. Firstly, evaluates the managers’ application level of transformational leadership in telecommunication companies in Algeria. Secondly, investigates the organizational knowledge transfer in study sample. Thirdly, tests the relationship between transformational leadership dimensions and the organizational knowledge transfer.

The present research ended up to the fact that the application of transformational leadership by managers of telecommunication companies in Algeria was medium, as well as the level of organizational knowledge transfer process.

This research investigated the causal relationship between the perceived transformational leadership and employees’ knowledge transfer. Based on the results, perceived transformational leadership positively and significantly affects employees’ organizational knowledge transfer, which supports the findings of earlier studies. Put differently, staffs who

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perceive more transformational leadership from their superiors are more inclined to exhibit organizational knowledge transfer behavior. It was found that the most important dimension influencing the knowledge transfer process was intellectual stimulation, the next dimensions in importance were respectively: inspirational motivation, idealized influence, and the least important dimension was individual consideration. Therefore, transformational leadership dimensions were predictors of organizational knowledge transfer process with different degrees of importance.

Based on the fact that transformational leadership positively affects the intra-organizational knowledge transfer the telecommunication companies should work hard to make their mangers adhere to transformational leadership style, in order to boost intra-organizational knowledge transfer.

Today’s organizations need effective transformational leaders who understand the crucial importance as well as the complexities of knowledge transfer for organizations’ success.

Organizations that manage their knowledge more effectively than their competitors will be able to achieve competitive advantages.

Limitation of study

Given the contribution of the present study on theoretical and practical perspectives the study reveals several limitations:

Firstly, in the current study, researcher used questionnaires to gather data; however, self- expressive data might inevitably include some biases that researcher should consider as limitations.

The second limitation is related to sample size. Since the large size of the population, which is the employees at telecommunication companies in Algeria, it required a relatively large sample size per statistical convention. Even though the sample size of 204 individuals in 3 companies obtained in this study was acceptable, a larger number of individuals involved in the study would provide more reliable results.

References

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