Relational study of wise (phronetic) leadership, knowledge management capability, and innovation performance

Abstract

The word ‘Phronesis' is from Greek, which describes a kind of practical wisdom. As innovation is regarded as a panacea for organizational development, this research explores the practical wisdom to improve corporate innovation performance. Our research is based on Nonaka's explanation of wise (phronetic) leadership and uses empirical methods to verify the correlation of wise leadership and innovation performance. 144 valid samples have been applied for analyzing. The research results illustrate that wise leadership has positive effects on organizational innovation performance. Moreover, Knowledge management (KM) capability has been evidenced in this research having part mediating effect between wise leadership and innovation performance. This study also summarizes limitations and points out the direction for future research.