INNOVATION IN CONSTRUCTION: ASSESSING THE ROLE OF TRANSFORMATIONAL LEADERSHIP AND KNOWLEDGE GOVERNANCE

Abstract

The dynamic nature of today’s world presents numerous challenges, and construction companies are not exempt from these difficulties. This research aimed to investigate the effects of transformational leadership (TL) on both product innovation (PDI) and process innovation (PCI), as well as to determine the mediating role of knowledge governance (KG) and knowledge sharing (KS), along with the moderating impact of innovation climate (IC). A cross-sectional design and structural equation modeling (SEM-AMOS) were employed to analyze data collected from 185 participants from various construction companies in Spain. The findings demonstrate that knowledge sharing and knowledge governance play a significant role in connecting TL with innovation capabilities. Additionally, it was found that the effects of TL and KS on different aspects of innovation capabilities vary and depend on the company’s innovation climate. This study provides valuable insights into the relationship between TL, KG, and innovation capability, highlighting the importance of fostering knowledge sharing, enhancing knowledge governance, and promoting a positive innovation climate to drive organizational innovation.