Journal of Knowledge Management, Volume 20, Issue 5, Page 1025-1044, September 2016.
Purpose The purpose of this paper is to explore the relationship between transactive memory systems and organizational innovation. Several recent studies have discussed the positive relationship between these two entities. Yet, very few studies have demonstrated how transactive memory systems are related to leadership and innovation. This study investigates this tripartite relationship, finding that developmental leadership exerts a mediating effect on the relationship between transactive memory systems and organizational innovation. Design/methodology/approach In examining this relationship, 224 participants from an electronics company in South Korea were surveyed. Structural equation modeling was used to enable the identification of simultaneous interactive relationships among the three research variables. Findings Contrary to previous research results, transactive memory systems were found not to be significantly related to organizational innovation. Results also indicated that transactive memory systems comprise a statistically significant variable that influences developmental leadership. Subsequently, developmental leadership can be considered to be a valid construct in predicting organizational innovation; it can also be seen to fully mediate the relationship between transactive memory systems and organizational innovation. Originality/value These results have theoretical and managerial implications. As transactive memory systems do not always precede organizational innovation, knowledge of “who knows what” is not enough to ensure innovative performances. To accelerate organizational innovation, intentional managerial interventions such as developmental leadership are accordingly necessary.