Role of Social Capital and Transformational Leadership in Upgrading the Firm Innovation Performance

Today, identification of necessary infrastructures is very important for creating innovation in organizations. Infrastructures were studies separately in previous studies, but the present study investigated the direct and indirect Effect of Social Capital and Transformational Leadership on Innovation Performance regarding the Mediating Role of Knowledge Management and Organizational Learning through a comprehensive model. This study was done on a sample consisting of 210 participants from Shatel Company personnel in Tehran who were selected through simple random sampling. The method of this study was correlational and a questionnaire was used as the instrument of this study. Structural Equation Modeling through Lisrel 8.8 Software was used for the data analysis. The results of this study showed that exogenous variables (social capital and transformational leadership) could not have a direct positive effect on knowledge management, but could have a direct positive effect on organizational learning and innovation performance. In addition, knowledge management had a direct positive effect on innovation performance and organizational learning. Organizational learning also had a direct significant positive effect on innovation performance.