The Impact of Transformational Leadership on Organizational Agility in Saudi Banks: The Mediating Role of Knowledge Sharing

Abstract

This study investigates the impact of transformational leadership on organizational agility in Saudi banks, emphasizing the mediating role of knowledge sharing. In the context of rapid digital transformation and Vision 2030, the ability of banks to remain agile is increasingly critical. Drawing from transformational leadership theory and knowledge management literature, a conceptual model was developed and tested using data collected from 378 employees across major Saudi banking institutions. Structural equation modeling (Smart PLS 4.0) was employed to examine the direct and indirect relationships among the variables. The findings reveal that transformational leadership significantly and positively influences both knowledge sharing behavior and organizational agility. Moreover, knowledge sharing behavior was found to partially mediate the relationship between transformational leadership and agility, suggesting that the effect of leadership is transmitted not only through direct influence but also through fostering a collaborative and knowledge-driven environment. The results highlight the strategic importance of transformational leadership in promoting open communication, trust, and innovation—all of which contribute to enhanced agility. This research contributes theoretically by integrating leadership and knowledge-sharing constructs to explain agility and offers practical implications for managers seeking to enhance adaptability in the banking sector. The study concludes by offering recommendations for leadership development and knowledge-sharing strategies in line with the evolving demands of the financial industry in Saudi Arabia.