Can Leaders Influence a Learning Organization? An Exploratory Study of the Relationship Between Leadership, Organizational Learning Capability and the Mediating Role of Trust

Abstract

The purpose of this research is to study how organizations maintain their competitive advantage in today’s turbulent and highly competitive business environment, by striving to become a learning organization. The impact of factors such as leadership (both transformational and transactional leadership) and trust on an organization’s learning capability is empirically examined. This research adds to the existing body of literature in two ways. First, it argues that a transactional leadership style can influence learning, despite research spanning the last decade that has focused on transformational leadership theory as the dominant model of effective leadership. Therefore, the importance of both leadership styles, each having valuable differential effects is emphasized in this study. Second, the previously untested role of trust as mediating the relationship between leadership and organizational learning capability is examined. It is argued that without supervisor trust, the opportunities for a learning organization to reach its full potential and to subsequently develop learning capabilities is reduced. Findings from this study support the influence of both leadership styles on learning. Trust in one’s supervisor was also found to fully mediate the relationship between leadership and learning.