Social scientists often estimate models from correlational data, where the independent variable has not been exogenously manipulated; they also make implicit or explicit causal claims based on these models. When can these claims be made? We answer this question by first discussing design and estimation conditions under which model estimates can be interpreted, using the randomized experiment as the gold standard. We show how endogeneity – which includes omitted variables, omitted selection, simultaneity, common-method variance, and measurement error – renders estimates causally uninterpretable. Second, we present methods that allow researchers to test causal claims in situations where randomization is not possible or when causal interpretation could be confounded; these methods include fixed-effects panel, sample selection, instrumental variable, regression discontinuity, and difference-in-differences models. Third, we take stock of the methodological rigor with which causal claims are being made in a social sciences discipline by reviewing a representative sample of 110 articles on leadership published in the previous 10 years in top-tier journals. Our key finding is that researchers fail to address at least 66% and up to 90% of design and estimation conditions that make causal claims invalid. We conclude by offering 10 suggestions on how to improve non-experimental research.

On making causal claims : A review and recommendations

Green innovation and environmental performance: The role of green transformational leadership and green human resource management

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).,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.,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.,Future studies should test mediating roles of knowledge management’s constituents and/or investigate the moderating roles of firm ownership form to increase the understanding of potential factors or key conditions that may have significant influences on a firm’s innovation capability.,The paper significantly contributes to increasing the understanding of the link between TL and specific aspects of innovation capability by highlighting the important role of stimulating KS and enhancing POS.,The paper provides useful information and valuable initiatives to increase leadership outcomes and firm’s capability for innovation.

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

Purpose – The purpose of this paper is to look at some of the factors that influence the transfer of tacit knowledge between two product development partners.Design/methodology/approach – Research involved the collection of both qualitative and quantitative data. The qualitative data was based on 13 interviews with various individuals, representing three companies, charged with integrating external technology. The quantitative portion of the data was collected through an online survey. The survey was executed by soliciting responses from managers of 39 discreet projects involving various types of external technology integration, representing five different companies.Findings – The paper provides evidence that trust, early involvement, and due diligence influence the extent of meeting technology transfer expectations and tacit knowledge transfer expectations. It also finds that the subject of tacit knowledge transfer, content and process, is poorly understood. While managers and project leaders saw the val...

Tacit knowledge transfer and the knowledge disconnect

This paper aims to investigate the correlation between collaborative culture, knowledge sharing and innovation capabilities in Chinese firms.,This paper used structural equation modeling to examine the level of how collaborative culture and knowledge sharing impact on two types of innovation capabilities (product innovation and process innovation) based on using data collected from 77 Chinese firms.,The research findings show that knowledge sharing plays a mediating role between collaborative culture and two specific types of innovation, namely, product innovation and process innovation. The paper first confirms the moderating role of ownership form in the relationships between knowledge sharing and innovation capabilities. The results underline the necessity of building a collaborative culture to stimulate employees’ knowledge sharing behavior, which in turn positively promotes innovation capabilities in an organization.,The paper has not evaluated the relationship between latent variables under the condition of moderating variables of individual characteristics (such as optimism and self-efficacy) or firm characteristics (such as industry type, firm size and firm age). Further research should examine the moderating effects of these variables to have clearer relationship between the constructs.,This paper offers leaders a deeper understanding of the effects of ownership forms and potential factors to promote innovation capabilities in their firms.,The paper has contributed to theoretical and practical initiatives on the theory of innovation management which enable firms to identify the necessary factors and mechanism to enhance firm capabilities for innovation.

Knowledge sharing serves as a mediator between collaborative culture and innovation capability: an empirical research

Purpose




This paper aims to investigate the influence of transformational leadership (TL) and two aspects of trust (trust in a leader and trust among members, including two versions of each: “disclosure” and “reliance”) on knowledge collecting (KC) and knowledge donating (KD).




Design/methodology/approach




Structural equation modelling was used to test the effects of TL and aspects of trust on knowledge sharing (KS) processes using data collected from 336 participants at 35 large service firms.




Findings




The results showed that reliance-based trust in a leader (LR), disclosure-based trust in a leader (LD), reliance-based trust among members (MR) and disclosure-based trust among members (MD) act as mediators in the relationship between TL and KS processes. LR and MR have more significant effects on KD, whereas LD, MD and TL have more significant effects on KC.




Research limitations/implications




Future research could examine how personal characteristics (e.g. education level and working experiences) moderate the relationships between TL and KS processes.




Practical implications




From a practical perspective, the paper provides directors/managers an increased understanding of paths to success in KC and KD.




Originality/value




This paper provides theoretical initiatives on building employee trust and improving KS in the field of knowledge management. From a managerial perspective, this study identifies necessary factors for encouraging and promoting KS processes within an organization.

The mediating role of trust in stimulating the relationship between transformational leadership and knowledge sharing processes

Purpose




This paper aims to clarify the influences of transformational leadership (TL), aspects of justice and trust on knowledge sharing (KS) process after assessing the controlling role of individuals’ education and gender.




Design/methodology/approach




Structural equations modeling (SEM) has been applied to evaluate the degree of influence that each variable has on the others through using data collected from 353 respondents of 56 large manufacturing and service firms.




Findings




The results show that distributive justice, procedural justice and trust in leadership play mediating roles in the relationship between TL and KS behavior. TL and procedural justice have more significant effects on knowledge collecting, while trust in the leader and distributive justice have more significant effects on knowledge donating.




Research limitations/implications




Future research can investigate how personal characteristics (e.g. educational level and work experience) may play moderating roles in the relationships between TL and KS processes.




Practical implications




From a practical perspective, the study brings a deeper understanding for directors and managers about the necessary factors to encourage and promote KS behavior in the organization.




Originality/value




The study findings provide a theoretical basis that can be used to analyze the relationships between TL, aspects of justice, trust and the KS process.

How transformational leadership supports knowledge sharing: Evidence from Chinese manufacturing and service firms

Given the important role of frugal innovation for firms in the developing and emerging countries, the purpose of this paper is to investigate the effect of transformational leadership (TL) on frugal innovation through the mediating roles of tacit and explicit knowledge sharing.,The paper used a quantitative research method and structural equation modeling to test the relationship among the latent factors based on a sample of 339 participants from 120 Vietnamese firms.,Findings reveal the significant impacts of TL on aspects of frugal innovation, namely, frugal functionality, frugal cost and frugal ecosystem. Moreover, the paper highlights the mediating roles of tacit and explicit knowledge sharing (KS) in the relationship between TL and frugal innovation in terms of frugal functionality and frugal cost.,To bring a deeper understanding of the benefits and important role of knowledge resources, future research should investigate the potential mediating mechanisms of knowledge management processes in the relationship between specific leadership styles and frugal innovation.,The paper provides a valuable understanding and novel approach for managers and directors of firms in developing and emerging countries to improve their firms’ frugal innovation capability through leadership practice and knowledge resources.,This study contributes to bridging research gaps in the literature and advances the insights of how TL directly and indirectly fosters frugal innovation via mediating roles of tacit and explicit KS.

Linking transformational leadership and frugal innovation: the mediating role of tacit and explicit knowledge sharing

This paper aims to investigate the effects of transformational leadership on individuals and organization’s innovation capability via the mediating role of employees' positive psychological capital (Psy-Cap) namely self-efficacy and optimism.,Structural equation modeling (SEM) is used to test proposal hypotheses through the empirical data collected from 330 participants at 90 firms in Vietnam.,The research findings revealed that self-efficacy and optimism significantly mediate the relationship between transformational leadership and innovation capabilities. In addition, self-efficacy has a greater impact on innovation capabilities compared with the effect of optimism.,The findings highlight the important role of practicing transformational leadership style to nurture and foster both employees' positive psychology sources and firms' innovation capability.,The paper has significantly advanced and deepened our understanding of how transformational leaders connect with employees to nurture and develop one of the most special aspects of human resource in contemporary working environment called employees' positive Psy-Cap for stimulating firm's innovation capabilities.

Hui Lei

Papers

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

The mediating role of trust in stimulating the relationship between transformational leadership and knowledge sharing processes

How transformational leadership supports knowledge sharing: Evidence from Chinese manufacturing and service firms

Linking transformational leadership and frugal innovation: the mediating role of tacit and explicit knowledge sharing

How transformational leadership facilitates innovation capability: the mediating role of employees' psychological capital