Firm performance through knowledge oriented leadership: do the roles of knowledge management capability and innovation ambidexterity matter?

Purpose This study draws upon path-goal, social learning and knowledge-based view theories to decipher the mediating mechanism in knowledge-oriented leadership and firm performance link in the hospitality context. Specifically, this study develops and tests a theoretical framework that investigates the chain mediation of knowledge management capability and innovation ambidexterity on the direct effect of knowledge-oriented leadership on firm performance. Design/methodology/approach This study garnered data from 363 full-time employees working in various firms in the Indian hospitality industry using a survey questionnaire. Structural equation modeling and PROCESS macro were employed to test the hypotheses. Findings This study finds that knowledge-oriented leadership positively impacts firm performance; knowledge management capability and innovation ambidexterity partially mediate the effect of knowledge-oriented leadership on firm performance. Finally, knowledge management capability and innovation ambidexterity sequentially mediate the knowledge-oriented leadership–firm performance relationship. Practical implications This study has pivotal implications for organizational leaders and policymakers. First, it elucidates novel insights into the processes of bolstering the firm performance. Second, it entails the need to practice knowledge-oriented leadership at all levels, as it is crucial for enhancing knowledge management capability, innovation, ambidexterity and firm performance. Originality/value The serial mediation model of this study can enrich the research on knowledge-oriented leadership, demystify the underlying mechanism of improving firm performance through knowledge management capability and innovation ambidexterity, and offer ideas and motivation for organizations to bolster their performance.