Determinants of innovation capability: the roles of transformational leadership, knowledge sharing and perceived organizational support

Purpose The study aims to explore the differences in transformational leadership's (TL's) influences on each aspect of innovation capability, namely, product innovation and process innovation. It also deepens understanding of the pathways and conditions to improve specific aspects of innovation capability by assessing the mediating role of knowledge sharing (KS) and moderating mechanism of perceived organizational support (POS). Design/methodology/approach The paper utilized structural equation modeling and cross-sectional design to test hypotheses in the proposed research model based on using data collected from 394 participants at 88 Chinese firms. Findings The findings indicate that KS mediates TL's effects on innovation capabilities. In addition, the influences of TL and KS on specific aspects of innovation capability are different and depend on the extent of employees' POS. Originality/value The paper provides useful information and valuable initiatives to increase leadership outcomes and firm's capability for innovation.