International Journal of Scientific & Technology Research

Home About Us Scope Editorial Board Blog/Latest News Contact Us
10th percentile
Powered by  Scopus
Scopus coverage:
Nov 2018 to May 2020


IJSTR >> Volume 9 - Issue 4, April 2020 Edition

International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616

Transformational Leadership, Mediating Effect Of Knowledge Management System And Moderating Effect Of Training In Human Capital Development: SEM-SMART PLS Approach

[Full Text]



Muhammad Shahid Khan, Duangkamol Chongcharoen, Premkamon Jankaweekun



Human capital development (HCD), Knowledge Management system (KMS), Training, Transformational leadership (TL), 360 Degree performance appraisal (PA), Structural Equation Modeling, Smart-PLS.



This is a knowledge-based economy era; consequently, the role of human capital cannot be neglected, constituting as it does an important competitive asset in today's global market. After leisure tourism and health tourism, the newest growth sector is education tourism, which attracts a huge number of international students. In the ASEAN region, Singapore and Malaysia are leading countries in this new growth industry. Education tourism is also recognized as a source of GDP growth. To compete with 21st century educational and technological challenges, the government of Thailand has to focus upon improving teachers’ knowledge, skills, and abilities. Human capital can play a vital role in achieving this objective; in turn, this research has developed a framework which identifies the mediating effects of knowledge management systems and the moderating effects of training in developing human capital. Quantitative methods have been used in this study, with data collected from different schools located in Bangkok and other provinces. In order to test the structural model, SMART PLS software has been used in this study. The results of this study reveal that knowledge management systems mediate the relationship between transformational leadership and human capital development. Results also evidence that variable training moderates the relationship between 360 degrees perforce appraisal and human capital development. This study, therefore, contributes to transformational leadership and human capital theory.



[1] https://www.bangkokpost.com/opinion/opinion/1363115/thai-education-system-fails-to-pass-the-test-say [Accessed 13 Jan. 2020].
[2] Ukenna, S. Ijeoma, N., Anionwu, C., Olise, M.C. (2010). Effect of Investment in Human Capital Development on Organizational Performance: Empirical Examination of the Perception of Small Business Owners in Nigeria. European Journal of Economics, Finance and Administrative Sciences, (26).
[3] Khan, M., Bilal, H., Mateen, A., & Haq, Z. (2017). The Mediating Effect of Knowledge Management System and Learning Culture on Human Capital Development. International Journal Of Management And Applied Science, 4(5), 14-17.
[4] Khan, M., Sentosa, I., & Salman, F. (2018). Exploring the role of transformational leadership in human capital effectiveness. World Journal Of Entrepreneurship, Management, And Sustainable Development, 14(2), 191-204. DOI: 10.1108/wjemsd-10-2017-0075.
[5] Fitzsimons, P. (2017). Human Capital Theory and Education. Encyclopedia of Educational Philosophy and Theory, 1050–1053. DOI:10.1007/978-981-287-588-4_331 .
[6] Tan, G., Gupta, A., & Wilgus, G. (2019). Investment in Early Childhood Education in a Globalized World. DOI:10.1057/978-1-137-60041-7.
[7] Simic, I. (1999).Transformational leadership the key to successful management of transformational organizational changes. The scientific journal Facta Universitatis , 1( 6) pp. 49 – 55.
[8] Bass, B. M. (1985). Leadership and Performance beyond Expectations. New York, Free Press.
[9] Burns, J. M. (1978). Leadership. New York: Harper & Row.
[10] Podsakoff, P. M., Mckenzie, S. B. & Bommer, W. H. (1996). Transformational Leader Behavior and Substitutes for Leadership as Determinants of Employee Satisfaction, Commitment, Trust, and Organizational Citizenship Behaviors. Journal of Management, 22(2), pp. 259-298.
[11] Katz, D., & St. KAHN, R. L. (1978). The social psychology of organization (2nd ed.). New York: Wiley.
[12] Bass, B. M., and Avolio, B. J. (1994). Improving Organizational Effectiveness through Transformational Leadership. Thousand Oaks, CA: Sage.
[13] Bass, B. M. (1990). Bass and Stogdill‟s Handbook of Leadership: Theory, Research, and Managerial Applications. (3rd ed.). New York: Free Press.
[14] Martina, E.G., Böhmann, T., & Krcmar, H.E. (2007). A strategy for knowledge management. Journal of Knowledge Management, 11 (6), pp. 3 – 15.
[15] Humphreys, J. H. & Einstein, W. O. (2003). Nothing New Under the Sun: Transformational Leadership from a Historical Perspective. Management Decision, 41(1/2), pp. 85-95.
[16] Andy, T., Timothy, O.C., Okwu, Akpa, Victoria O. Nwankwere & idowu a. (2011). Effects of leadership style on organizational performance survey of selected small scale enterprises in Ikosi-kcouncil development area of Lagos State, Nigeria. Australian Journal of Business and Management Research, 1 (7), pp. 100-111.
[17] Bass, B. M., and Avolio, B. J. (1997). Full Range Leadership: Manual for the Multifactor Leadership Questionnaire. Palo Alto, CA: Mind Garden.
[18] Bhagat, R.S., Kedia, B.L., Harveston, P.D. and Triandis, H.C., R.S. (2002). Cultural variations in the cross-border transfer of organizational knowledge: an integrative framework. Academy of Management Review, 27 (2), pp. 204-21.
[19] Martin, B. (2000). Knowledge management within the context of management: an evolving relationship, Singapore Management Review, 22 (2), pp. 17-37.
[20] Nonaka, I. and Takeuchi, H. (1995). The Knowledge-creating Company-How Japanese Companies Create the Dynamics of Innovation. Oxford University Press, Oxford.
[21] Popadiuk, S. and Choo, C.W. (2006). Innovation and knowledge creation: how are these concepts related? International Journal of Information Management, 26 (4), pp. 302-12.
[22] Brown, R.B. and Woodland, M. (1999). Managing knowledge wisely: a case study in organizational behavior. Journal of Applied Management Studies, 8 (2), pp. 175-98.
[23] Nonaka, I. (1991). The knowledge-creating company. Harvard Business Review, 69 (6), pp. 96-104.
[24] Ishak, N.B., Eze, U.C., & Ling, L.S. (2010). Integrating Knowledge Management and Human Resource Management for Sustainable Performance. Journal of Organizational Knowledge Management HTML Vol. 2010.
[25] Sawasn Al-Husseini, Ibrahim El Beltagi & Jonathan Moizer (2019) Transformational leadership and innovation: the mediating role of knowledge sharing amongst higher education faculty, International Journal of Leadership in Education, DOI: 10.1080/13603124.2019.1588381.
[26] Oforegbunam, Ebiringa, T. and G. F. OKORAFOR (2010). Effects of human capital development on the performance of small and medium scaled enterprises in the southeastern region of Nigeria. Journal of Sustainable Development in Africa, 12 (8).
[27] Ikramullah, M. Shah,b., Sajjad-ul-hassan, F., ZAman, T., & Khan, H. (2011). Fairness Perceptions of Performance Appraisal System: An Empirical Study of Civil Servants in District Dera Ismail Khan, Pakistan. International Journal of Business and Social Science, 2 (21), pp.92-100.
[28] Azmi, i.a.g. (2009). Human capital development and organizational performance: a focus on Islamic perspective. Shariah Journal, 17(2), pp. 353-372.
[29] Tim, M. and R.O. Brinkerhoff, 2008. Courageous training: Bold actions for business results. Colorado: Berrett-Koehler Publishers.
[30] Zigon, J. (2002). How to Measure Employee Performance, Performance Group. Retrieved from: www.ziponper.org.
[31] Fletcher, C. (2001). Performance appraisal and management: The developing research agenda. Journal of Occupational and Organizational Psychology, 74(4), 473-487.
[32] Griffin, R. W. & Ebert, R. J. (2002) Business, (6th ed.). London: Prentice-Hall.
[33] Aijaz, Z. (2019). Impact of 360-degree performance reviews on motivation of doctors and nurses in Ireland (Master). Dublin Business School.
[34] Sharma, S. (2012). Performance Appraisal and Career Development. VSRD-IJBMR, Vol. 2 (1), 8-16. Available ONLINE www.vsrdjournals.com.
[35] Menjo Baye, F., Jean, D., & Marcellus Fonkem, N. (2014). impact of intellectual capital efficiency on the financial performance of financial institutions in yaounde, cameroon. Nternational Journal Of Arts And Commerce, 3(4), 166-178.
[36] Snell, S. and Bohlander, G. (2007). Human Resource Management. Thomson South-Western, Mason, OH.
[37] Ulrich, D., Zenger, J. and Smallwood, N. (1999). Results-Based Leadership. Harvard Business School Press, Boston, MA.
[38] Skandia (1998). Human Capital in Transformation, Intellectual Capital Prototype Report. Skandia, Stockholm.
[39] Sullivan, P. (1999). Profiting from intellectual capital. Journal of Knowledge Management, 3 (2), pp. 132-42.
[40] Becker, G.S. (1962). Investment in human capital: a theoretical analysis. The Journal of Political Economy, 70 (5), pp. 9-49.
[41] Bartel, P., Ciaran, S. Phibbs, Beaulieu, N., & Stone, P. (2011) Human capital and organizational performance: evidence from the healthcare sector. Working Paper 17474. Available at: http://www.nber.org/papers/w17474.
[42] Becker, G. S. (1993). Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education (3rd ed.). Chicago: University of Chicago Press.
[43] Schultz, T.W. (1993). The economic importance of human capital in modernization. Education Economics,1, pp. 13-19.
[44] Marimuthu, M., Arokiasamy, L. & M. Ismail, (2009). Human Capital Development and its impact on firm performance: Evidence from development economics. The Journal of International Research, 2, pp. 265 – 272.
[45] Katou, A. (2009). The impact of human resources development on organizational performance: Test of a causal model. Journal of Behavioral and Applied Management, 5, pp. 335 –356.
[46] Lall, S. (1999). competing with labor: Skills and competitiveness in developing countries. Development Policies Department, International Labor Office, Discussion Paper 31.
[47] Ogunade, A. (2011). Human capital investment in the developing world: an analysis of praxis. Schmidt Labor Research Center Seminar Series, University of Rhode Island.
[48] Politis, J.D. (2002). Transformational and transactional leadership enabling (disabling) knowledge acquisition of self-managed teams: the consequences of performance. Leadership & Organization Development Journal, 23 (4), pp. 186-97.
[49] Song, J.H. Kolb, J.A., LEE, Kim, H.K. (2012). Role of Transformational Leadership in Effective Organizational Knowledge Creation Practices: Mediating Effects of Employees’ Work Engagement. Human resource development quarterly, vol. 23, no. 1.
[50] Crawford, C.B., (2005) Effect of transformational leadership and organizational position on knowledge management. Journal of Knowledge Management, 9(6),pp.6-16.
[51] Laka-Mathebula, M.R. (2004). Modeling the relationship between, organizational commitment, leadership style Human Resource Management Practices and Organizational Trust. Unpublished Ph.D. thesis, University of Pretoria etd.
[52] Zhao, J. (2009). School knowledge management framework and strategies: The new perspective on teacher professional development School of Management, Harbin Institute of Technology, No. 92, West Da-Zhi Street, Harbin, Heilongjiang 150001, China.
[53] Olufemi, A.J. (2009). Human Capital development practices and organizational effectiveness: a focus on contemporary Nigerian Banking Industry. Pakistan journal of social sciences, 6(4), pp.194-199.
[54] Castiglione, J. (2006). Organizational learning and transformational leadership in the library environment. Library Management, 27 (4), pp. 289 – 299.
[55] Bontis, N. & FITZ-ENZ, J. (2002) Intellectual capital ROI: a causal map of human capital antecedents and consequences. Journal of Intellectual Capital, 3 (3), pp. 223-47.
[56] Chin, W. W. (1998). Issues and opinion on structural equation modeling. MIS Quarterly, 22(1), 7–16.
[57] Kannana, V. R., & Tan, K. C. (2005). Just in time, total quality management, and supply chain management: understanding their linkages and impact on business performance. Omega: The International Journal of Management Science, 33(2), 153–162.
[58] Werts, C. E., Linn, R. L., & Jöreskog, K. G. (1974). Intraclass reliability estimates: Testing structural assumptions. Educational and Psychological Measurement, 34(1), 25–33.
[59] Kline, R. B. (2010). Principles and practice of structural equation modeling (3rd ed.). New York: The Guilford Press.
[60] Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate Data Analysis (7th ed.). New York: Pearson.
[61] Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50.
[62] Awang, Z. (2014). Structural Equation Modeling Using AMOS. Shah Alam.Malaysia: Penerbit Universiti Teknologi MARA.
[63] Hair, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (2nd ed.). London: Thousand Oaks: SAGE.
[64] Sullivan, G. M., & Feinn, R. (2012). Using Effect Size - or why the p-Value is not enough. Journal of Graduate Medical Education, 4(3), 279–282.
[65] Cohen, J. (1988). Statistical Power Analysis for the Behavioral Sciences (Second Ed.). New York: Routledge. Critical Human Capital Issues report. (2014). The Top 10 Critical Human Capital Issues: Enabling Sustained Growth through Talent Transparency, Institute for Corporate Productivity (i4cp). Retrieved from http://go.i4cp.com/criticalissues2014.
[66] Gefen, D., & Rigdon, E. E. (2011). An Update and Extension to SEM Guidelines for Administrative and Social Science.
[67] Kasemsap, Kijpokin. "The role of data mining for business intelligence in knowledge management." In Integration of data mining in business intelligence systems, pp. 12-33. IGI Global, 2015.