Knowledge-oriented leadership, organizational trust and psychological capital: a gateway to innovative performance: a multisource approach

Purpose The purpose of this study is to explore the interconnection among knowledge-oriented leadership, organizational trust, psychological capital and innovative performance via a serial mediation model, drawing upon contingency theory and positive organizational behavior theory. Design/methodology/approach Data were collected from private and public educational institutes in Sialkot, Pakistan, by using a time-lagged design. Data analysis was done by using Smart PLS and SPSS. Findings The results confirm a positive relationship among knowledge-oriented leadership, organizational trust, psychological capital and innovative performance. Specifically, the association between knowledge-oriented leadership and innovative performance is sequentially mediated by organizational trust and psychological capital. The findings underscore the substantial impact of knowledge-oriented leadership on organizational trust, psychological capital and innovative performance, highlighting its role in enhancing these aspects within an educational institution. Research limitations/implications The current study represents a notable expansion in the realm of knowledge-oriented leadership research, as only a limited number of empirical studies have delved into this area. Moreover, this study contributes to the existing literature by not only advancing the understanding of knowledge-oriented leadership but also shedding light on organizational trust, psychological capital and innovative performance within the context of educational institutions in Pakistan, specifically in Sialkot. Practical implications The study’s findings indicate that educational institutions led by knowledge-oriented leadership demonstrate noteworthy levels of organizational trust, psychological capital and innovative performance. Moreover, knowledge-oriented leadership has a positive impact on the innovative performance of educational institutes. These results suggest that educational institutions in Sialkot, Pakistan, operate in alignment with their intended purpose and offer current data for researchers’ use. Originality/value This study focuses on new dimensions of leadership and emphasizes how knowledge-oriented leadership is a source of Innovative performance.