Home » Effective Leadership » Analyzing Leadership and Knowledge Management in Large Companies
Effective Leadership Article

Analyzing Leadership and Knowledge Management in Large Companies

Insider Secrets to Grow Your Business Fast With Transformational Leadership: 

In 2001, Chien identified the relationship between the effectiveness of leadership and the type of leadership adopted by top management executives in large companies. He found there was a strong positive correlation between perceived effectiveness by leaders themselves and their employees on the one hand and observed transformational leadership on the other.

In large companies, business leaders need to improve relationships with subordinates to understand mutually expected behaviours. In this example, transformational leadership can provide a significant contribution to leaders in large companies to enhance their interactions and develop the relationships with employees.

Transformational leadership plays a crucial role in developing a learning climate within companies, and empowers employees in the pursuit of organisational goals. Transformational leaders can also enable large companies to actively respond to the changes occurring in the external environment, and create effective changes to build a sustained learning workplace within large companies.

Moreover, it is evident that intellectual stimulation as another aspect of transformational leadership could also positively impact on the effectiveness of leadership in large companies to build a learning workplace through facilitating knowledge sharing around the organisation.

Leaders in large organisations require people who have been inspired to face the changes in the business environment. Based on this, transformational leadership can contribute to these leaders inspiring their followers by inspirational motivation determining a highly desired expectation for employees to some extent. Therefore, transformational leadership is a leadership style which could be employed in order to improve the effectiveness of leadership in large organisations.

Furthermore, in describing the critical role of knowledge management in large organisations, McAdam and Reid (2001) demonstrate that while small organisations suffer from insufficient investment and a lesser degree of advancement in knowledge management, top managers in large companies have a better understanding of the importance of knowledge management and tend to invest more in developing their strategic knowledge management systems.

The results of this research also indicate that large organisations are more advanced in capturing, creating and disseminating knowledge around the organisation. Davies and Warren (2011) assert that the processes of knowledge management in large enterprises can be evaluated by measuring the processes of knowledge finding, integrating and networking with other companies. In Davies and Warren’s (2011) view, large companies firstly investigate new knowledge from various sources. It can be seen that the knowledge finding plays a critical role in large companies in exploring new knowledge through acquiring knowledge and information from the external business environment and developing the required capabilities to create new knowledge within company.

Transformational leadership graph

Secondly, Davies and Warren (2011) focus on internally integrating knowledge through synthesising new knowledge and information in order to improve the effectiveness of organisational processes and the quality of products or services. Finally, they highlight that organisations must commercially collaborate with other companies operating in the business environment, and share their knowledge with them.

This process is also equal to the knowledge reconfiguration process by which knowledge is externally shared with business partners aiming at enabling companies to effectively recognise the changes occurring in external environments and actively responding to them. Therefore, theses three processes of knowledge management could be chosen as a reference to portray knowledge management in large enterprises.


Chien, HJ 2001, A comparison of leadership characteristics in public and large and small private organizations in Taiwan, Nova Southeastern University, US.

Davies, J & Warren P 2011 .Knowledge management in large organizations. In Domingue, J,

Fensel, D & Hendler, JA (ed.) Handbook of semantic web technologies, Springer-Verlag, Berlin.

McAdam, R & Reid, R 2001 ‘SME and large organisation perceptions of knowledge management: comparisons and contrasts’, Journal of Knowledge Management, vol. 5, no. 3, pp. 231 – 241.

Hot News

nouriel roubini nobel prize transnational corporations meaning multinational corporations examples top ten richest people on earth what does mnc mean top 100 richest peoples in world top 100 richest women in the world dambisa moyo husband top 10 richest persons of world who is wealthiest man in the world transnational corporations statistics list of top 100 richest men in the world list of worlds richest person who is the most richest person on earth top transnational corporations top richest people of world how much money does the richest person have the richest person on the world list of richest people on earth top 10 wealthiest people worlds richest author bmw multinational company list of wealthiest people in the world woman world leaders top 10 business man in world strongest dog in the world wikipedia the world's most richest person wealthiest person of all time list of global corporations whos is the richest person in the world

WELCOME TO spray-fito

Executive C-Suite Team of spray-fito


  • 1,986,742 all-time users

WHAT IS spray-fito?

As Seen On Forbes