Enhancing Financial Service Distribution Networks: The Impact of Transformational Leadership on Knowledge Distribution

This study investigated the critical internal factors influencing knowledge distribution in banking services, addressing a significant gap in understanding how leadership influences knowledge distribution practices across financial service delivery networks. The research examined how transformational leadership affected knowledge distribution in banking services both directly and indirectly through organizational culture and intrinsic motivation, with implications for optimizing multi-channel distribution systems. Data was collected from 102 banking managers across various distribution channels using a structured questionnaire based on established scales. Partial least squares structural equation modeling (PLS-SEM) was employed to test the hypothesized relationships in the integrated theoretical model. Results revealed that transformational leadership significantly impacted organizational culture, intrinsic motivation, and knowledge sharing. Both organizational culture, and intrinsic motivation positively influenced knowledge sharing practices. These findings highlight the crucial interplay between leadership practices, cultural values, and motivational factors in facilitating effective knowledge distribution within banking institutions. The research provides significant distribution science implications by demonstrating how enhanced internal knowledge flows improve service delivery across multiple distribution channels, enabling banks to optimize their distribution networks and strengthen market competitiveness through more consistent service delivery and faster adaptation to changing market conditions.