Knowledge Management Practices and Transformational Leadership Traits: Predicting Process Innovation in FMCG Industry

Organizations in the current competitive and challenging situation considered organizational process innovation to sustain themselves with competitive advantage and provisioning of high value products to consumers. The current study investigates the role of transformational leadership traits and knowledge management practices on predicting the process innovation in FMCG companies. Data has been collected from the 10 FMCG companies located in major two cities i.e. Lahore and Karachi, Pakistan. Sample of 200 top line managers have been selected by convenience sampling method and adapted itemized questionnaire has been presented to the top management after a brief session of face to face interviews. Response of 170 top line employees has been registered and statistical testing has been done on SPSS 22. Results indicated that the transformational leadership traits has significantly positive impact on process innovation which effectively expedites the production efficiency of manufacturing units. The knowledge management practices such as acquisition, transfer and application has strong and positively significant association with process innovation. The knowledge management practices positively mediates with transformational leadership traits and resultantly lays foundation for continuous process improvement to survive in market. This conceptual model practically helps the production and manufacturing companies to nurture positive change management attitudes, decreasing production time, expanding products range, development of skills needed to advocate and adopt change, employee involvement, commitment and benefits of large scale economy. This study is limited to FMCGs in major cities and can be expanded to services industry and test the conceptual model

Leadership Style and Employee Motivation: A Study of Saudi Arabian Work Environment

Leaders motivate employees through setting in place structures aimed at taking full advantage of employee’s potential, organization resources and providing direction. Conversely, they can severely cause difficulty in inspiring confidence, buying into firm’s goals, promoting alignment and fostering collaborative environment. Therefore, this research aims at investigating relationship leadership style and motivation of employees. An intensive review of literature has been conducted highlighting employee motivation, leadership style (Authoritarian, Paternalistic, Transformational, Laissez-faire). The data were collected through questionnaire which was distributed to government employees working in Alkharj (Riyadh region) and 130 valid responses were received. SPSS 22 was used to carry out statistical analysis and the results indicated an overall positive significance of leadership styles and motivation. The overall impact of leadership styles together on motivation was found as 66.5% (R2=0.665). The unique effects of each Paternalistic, Transformational and Laissez-faire style on motivation was found positive and significant. Whereas, the relationship between authoritarian leadership style and motivation was found insignificant. It is recommended that leaders in Saudi Arabia work environment must follow paternalistic and transformational leadership styles to enhance motivation level of their employees.Los líderes motivan a los empleados mediante el establecimiento de estructuras destinadas a aprovechar al máximo el potencial de los empleados, los recursos de la organización y proporcionar dirección. Por el contrario, pueden causar graves dificultades para inspirar confianza, aceptar los objetivos de la empresa, promover la alineación y fomentar un entorno colaborativo. Por lo tanto, esta investigación tiene como objetivo investigar el estilo de liderazgo de relación y la motivación de los empleados. Se ha llevado a cabo una revisión intensiva de la literatura que destaca la motivación de los empleados, el estilo de liderazgo (Autoritario, Paternalista, Transformacional, Laissez-faire). Los datos se recopilaron mediante un cuestionario que se distribuyó a los empleados del gobierno que trabajan en Alkharj (región de Riad) y se recibieron 130 respuestas válidas. El SPSS 22 se utilizó para llevar a cabo análisis estadísticos y los resultados indicaron una importancia positiva general de los estilos de liderazgo y la motivación. El impacto general de los estilos de liderazgo juntos en la motivación se encontró en 66.5% (R2 = 0.665). Los efectos únicos de cada estilo Paternalista, Transformacional y Laissezfaire en la motivación fueron positivos y significativos. Mientras que la relación entre el estilo de liderazgo autoritario y la motivación se consideró insignificante. Se recomienda que los líderes en el ambiente de trabajo de Arabia Saudita deben seguir estilos de liderazgo paternalistas y transformadores para mejorar el nivel de motivación de sus empleados

Knowledge Management Practices and Transformational Leadership Traits: Predicting Process Innovation in FMCG Industry

Organizations in the current competitive and challenging situation considered organizational process innovation to sustain themselves with competitive advantage and provisioning of high value products to consumers. The current study investigates the role of transformational leadership traits and knowledge management practices on predicting the process innovation in FMCG companies. Data has been collected from the 10 FMCG companies located in major two cities i.e. Lahore and Karachi, Pakistan. Sample of 200 top line managers have been selected by convenience sampling method and adapted itemized questionnaire has been presented to the top management after a brief session of face to face interviews. Response of 170 top line employees has been registered and statistical testing has been done on SPSS 22. Results indicated that the transformational leadership traits has significantly positive impact on process innovation which effectively expedites the production efficiency of manufacturing units. The knowledge management practices such as acquisition, transfer and application has strong and positively significant association with process innovation. The knowledge management practices positively mediates with transformational leadership traits and resultantly lays foundation for continuous process improvement to survive in market. This conceptual model practically helps the production and manufacturing companies to nurture positive change management attitudes, decreasing production time, expanding products range, development of skills needed to advocate and adopt change, employee involvement, commitment and benefits of large scale economy. This study is limited to FMCGs in major cities and can be expanded to services industry and test the conceptual model.Las organizaciones en la actual situación competitiva y desafiante consideraron la innovación de procesos organizacionales para sostenerse con ventaja competitiva y aprovisionamiento de productos de alto valor para los consumidores. El estudio actual investiga el papel de los rasgos de liderazgo transformacional y las prácticas de gestión del conocimiento en la predicción de la innovación de procesos en las empresas de bienes de consumo. Se han recopilado datos de las 10 compañías de bienes de consumo que se encuentran en las dos principales ciudades, es decir, Lahore y Karachi, Pakistán. Se seleccionó una muestra de 200 gerentes de primera línea mediante un método de muestreo de conveniencia y se presentó un cuestionario detallado adaptado a la alta gerencia después de una breve sesión de entrevistas cara a cara. Se ha registrado la respuesta de 170 empleados de primera línea y se han realizado pruebas estadísticas en SPSS 22. Los resultados indicaron que los rasgos de liderazgo transformacional tienen un impacto significativamente positivo en la innovación de procesos, lo que acelera efectivamente la eficiencia de producción de las unidades de fabricación. Las prácticas de gestión del conocimiento, como la adquisición, transferencia y aplicación, tienen una asociación fuerte y positivamente significativa con la innovación de procesos. Las prácticas de gestión del conocimiento median positivamente con rasgos de liderazgo transformacional y, en consecuencia, sientan las bases para la mejora continua de los procesos para sobrevivir en el mercado. Este modelo conceptual prácticamente ayuda a las empresas de producción y fabricación a fomentar actitudes positivas de gestión del cambio, disminuyendo el tiempo de producción, ampliando la gama de productos, desarrollando las habilidades necesarias para abogar y adoptar el cambio, la participación de los empleados, el compromiso y los beneficios de la economía a gran escala. Este estudio se limita a los bienes de consumo en las principales ciudades y se puede ampliar a la industria de servicios y probar el modelo conceptual

Social Media Adoption and Financial Sustainability: Learned Lessons from Developing Countries

Social Media (SM) is considered one of the most discussed topics in today’s business environment, mostly because of the recent developments and improvements in computer and ICT (Information and Communications Technology) technologies. However, very little is known about Social Media’s (SM) role in creating Small and Medium-sized Enterprises’ (SMEs’) financial sustainability. Drawing upon the Technology Organisational and Environmental (TOE) framework, the authors constructed a comprehensive model that examined the role of different factors in the adoption of SM by SMEs in developing countries (using Pakistan as an example). Using a questionnaire survey of 383 owners/managers of SMEs in Pakistan, the research findings determined the different factors (i.e., organisational, technological, and environmental), which can impact the adoption of SM by SMEs. In line with previous research studies, the results of structural equation modelling show that technological factors such as perceived benefits of SM, compatibility of SM, cost, and trust have a substantial effect on SMEs’ SM adoption. Similarly, both organisational factors: top management support and technological competence, are strong predictors of SM adoption in SMEs. Finally, environmental factors (i.e., competitor pressure, customer pressure, and information intensity) positively impacted SM adoption by SMEs. The effect of SM adoption on SMEs’ financial sustainability was also tested and found to be positive and significant. Several theoretical and practical implications for owners/managers and other stakeholders regarding SM’s successful implementation by SMEs are highlighted within the paper