Transformational Leadership and Human Capital Development: The Mediating Role of Knowledge Sharing Behavior

Abstract

The current research examines the central role of the concept of transformational leadership in promoting the development of human capital within the higher learning institutions namely universities and colleges in South Punjab, Pakistan, by looking at the mediating role of knowledge sharing behavior. In a dynamic environment where educational and organizational capacity is yet to be matured, it is important to adopt efficient leadership styles to exploit potential of human resource. Based on the Social Exchange Theory and the Knowledge-Based View, the study assumes that inspirational motivation, personalized consideration, and intellectual stimulation by transformational leaders increase the willingness of employees to share both tacit and explicit knowledge, which will help sustain a learning process and grow their competencies needed to drive sustainability in human-capital development. The sample of 200 educational leaders of higher-education institutions and colleges in South Punjab working in the public sector was selected through the use of the structured questionnaire based on time-lagged survey design. Through the use of structural equation modelling (SEM), the research endeavored to examine the hypothesized connections between transformational leadership styles, knowledge-sharing behavior, and developmental results of human capital. The empirical evidence illustrates that knowledge-sharing behavior has been a very important mediator between transformational leadership and human-capital development. As a result, the research will contribute to the body of knowledge in the region by highlighting the role of creating knowledge ecosystems led by leadership as a conclusive approach in empowering the working population in the developing economies. The policy implications indicate that leadership development initiatives and organizational learning cultures can be hugely used to strengthen human capital that may lead to the improvement of the institutional effectiveness and socio-economic development of South Punjab.