To Guide or to Divide: The Dual-Side Effects of Transformational Leadership on Team Innovation

This paper investigates the dual-side effects of transformational leadership [i.e., the effects of group-focused transformational leadership (group-focused TFL) and differentiated individual-focused transformational leadership (individual-focused TFL)] on team innovation via team knowledge sharing. The moderating role of team interdependence in the relationship between the dual sides of transformational leadership and team knowledge sharing is also discussed. This paper draws from social identity and contingency perspectives to uncover the mediating role of team knowledge sharing as well as the moderating role of team interdependence. Multi-source data were collected from 242 members and their leaders within 60 R&D teams for use in testing the hypotheses. The results indicate that group-focused TFL is positively related to team innovation via team knowledge sharing, whereas differentiated individual-focused TFL is negatively related to team innovation via team knowledge sharing. Furthermore, team interdependence plays a moderating role in these relationships: when team interdependence is higher, the positive relationship between group-focused TFL and team knowledge sharing is stronger while the negative relationship between differentiated individual-focused TFL and team knowledge sharing is weaker. This paper shows that team knowledge sharing mediates the relationship between both group-focused TFL, differentiated individual-focused TFL, and team innovation. The relationship between group-focused TFL, differentiated individual-focused TFL, and team knowledge sharing varies as a function of team interdependence. The research findings offer practical insights for team leaders to facilitate team knowledge sharing, which in turn fosters team innovation. This paper proposes and tests group-focused TFL and differentiated individual-focused TFL-team knowledge sharing-team innovation linkage. It offers team leaders guidelines in motivating team knowledge sharing and team innovation.