These studies aimed to investigate the relationship between transformational leadership on job satisfaction and employee performance. The study adopted a quantitative paradigm with a population of employees at the Investigation Department, Immigration Office in Bali, Indonesia. The questionnaire was spread to 253 employees on intervals time three weeks by the number was responding are 115 employees.  The results revealed that transformational leadership has a significant effect on job satisfactionhowever, no significant impact on employee performance. Job satisfaction has a significant impact on employee performance. Moreover, this research found that job satisfaction played an essential role as a mediating between transformational leadership on employee performance. The implications of the study represent job satisfaction as a critical role and will be discussed.  Whereas, the practical implications concern the importance of administering equity in the transformational leadership values to enhance employee performance.

Transformational leadership, Job satisfaction, employee performanc

Allameh, S. M. (2018). Antecedents and consequences of intellectual capital: The role of social capital, knowledge sharing and innovation. Journal of Intellectual Capital, 19(5), 858-874.

Al-Kurdi, O., El-Haddadeh, R., & Eldabi, T. (2018). Knowledge sharing in higher education institutions: a systematic review. Journal of Enterprise Information Management, 31(2), 226-246.

Al- Husseini, S. and Elbeltagi, I. (2013). Knowledge Sharing Practices as a Basis of Product Innovation: A Case of Higher Education in Iraq. International Journal of Social Science and Humanity. 5 (2), 182-85.

Aromaa, S., Tsourma, M., Zikos, S., Kaasinen, E., Kreposna, M., Drosou, A., & Tzovaras, D. (2019). User Experience of a Social Media Based Knowledge Sharing System in Usaha Work. In International Conference on Human Interaction and Emerging Technologies (pp. 117-123).

Bustinza, O. F., Gomes, E., Vendrell‐Herrero, F., & Baines, T. (2019). Product–service innovation and performance: the role of collaborative partnerships and R&D intensity. R&D Management, 49(1), 33-45.

Carvalho, A. D. P., & dos Reis, D. R. (2012). Creativity to Innovation in the APL of Information Technology in the Southwest Region of Paraná-PR. International Journal of Organizational Innovation (Online), 4(3), 7- 23.

Crema, M., Verbano, C., & Venturini, K. (2014). Linking strategy with open innovation and performance in SMEs. Measuring Business Excellence, 18(2), 14-27.

Crossan, M. M., & Apaydin, M. (2010). A multi‐dimensional framework of organizational innovation: A systematic review of the literature. Journal of management studies, 47(6), 1154-1191.

Costa, V., & Monteiro, S. (2016). Knowledge processes, absorptive capacity and innovation: A mediation analysis. Knowledge and Process Management, 23(3), 207-218.

Damanpour, F. (1991). Organizational innovation: A meta-analysis of effects of determinants and moderators. Academy of management journal, 34(3), 555-590.

Dávila, G. A., Durst, S., & Varvakis, G. (2018). Knowledge absorptive capacity, innovation, and firm’s performance: insights from the South of Brazil. International Journal of Innovation Management, 22(02), 1850013.

Denning, Steve. (2005). Why the best and brightest approaches don’t solve the innovation dilemma. Strategy and Leadership. 33 (1), 4-11

Desouza, K. C., & Awazu, Y. (2006). Knowledge management at SMEs: five peculiarities. Journal of knowledge management. 16 (6), 879-903

Escribá‐Esteve, A., & Montoro‐Sánchez, Á. (2012). Guest editorial: creativity and innovation in the firm. International Journal of Manpower. 33 (4), 344-348

Esteve A.E., Sanchez A.M., (2012), Guest editorial: creativity and innovation in the firm Managerial antecedents and effects on employees, “International Journal of Manpower”, 33(4)

Fazli, H. S., Vazifehdoust, H., & Nikoumaram, H. (2016). The Effect of Knowledge Sharing On Organizational Innovation, Considering a Mediating Role of Organizational Learning.

Gao, S., Xu, K., & Yang, J. (2008). Managerial ties, absorptive capacity, and innovation. Asia Pacific Journal of Management, 25(3), 395-412.

George, G., Zahra, S. A., Wheatley, K. K., & Khan, R. (2001). The effects of alliance portfolio characteristics and absorptive capacity on performance: A study of biotechnology firms. The Journal of High Technology Management Research, 12(2), 205-226.

Giustiniano, L., Lombardi, S., & Cavaliere, V. (2016). How knowledge collecting fosters organizational creativity. Management Decision, 54(6), 1464–1496

Gray, C. (2006). Absorptive capacity, knowledge management and innovation in entrepreneurial small firms. International Journal of Entrepreneurial Behavior & Research, 12(6), 345-360.

Grant, R. M. (1996). Toward a knowledge‐based theory of the firm. Strategic management journal, 17(Winter Special Issue), 109-122.

Hadi, S. F., Hosein H., Hashem, N. (2016) The Effect of Knowledge Sharing On Organizational Innovation, Considering a Mediating Role of Organizational Learning, International Journal of Business and Marketing, 1 – 11

Hair Jr, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLS-SEM). Sage publications

Hassen, Y. A., & Svensson, A. (2014). The Role of E‐commerce for the Growth of Small Enterprises in Ethiopia. The Electronic Journal of Information Systems in Developing Countries, 65(1), 1-20.

Hort M.D., Vehar J., (2012), Becoming a Leader Who Fosters Innovation, Center for Creative Leadership, A White Paper.

Hussain, K., Konar, R., & Ali, F. (2016). Measuring service innovation performance through team culture and knowledge sharing behaviour in hotel services: a PLS approach. Procedia-Social and Behavioral Sciences, 224(15), 35-43.

Hutchinson, V., & Quintas, P. (2008). Do SMEs do knowledge management? Or simply manage what they know?. International Small Business Journal, 26(2), 131-154.

Ikeda, K., & Marshall, A. (2016). How successful organizations drive innovation. Strategy & Leadership, 44(3), 9-19.

Ismail, M. B., & Yusof, Z. M. (2009). Demographic factors and knowledge sharing quality among Malaysian government officers. Communications of the IBIMA, 9(1), 1-8.

Kafetzopoulos, D., & Psomas, E. (2015). The impact of innovation capability on the performance of manufacturing companies: The Greek case. Journal of Manufacturing Technology Management, 26(1), 104-130.

Kale, E., Aknar, A., & Başar, Ö. (2019). Absorptive capacity and firm performance: The mediating role of strategic agility. International Journal of Hospitality Management, 78, 276-283.

Koopmans, L., Bernaards, C. M., Hildebrandt, V. H., De Vet, H. C., & Van der Beek, A. J. (2014). Construct validity of the individual work performance questionnaire. Journal of occupational and environmental medicine, 56(3), 331-337.

Lau, A. K., & Lo, W. (2019). Absorptive capacity, technological innovation capability and innovation performance: an empirical study in Hong Kong. International Journal of Technology Management, 80(1-2), 107-148.

Lane, P. J., Koka, B. R., & Pathak, S. (2006). The reification of absorptive capacity: A critical review and rejuvenation of the construct. Academy of management review, 31(4), 833-863.

Lawson, B., & Samson, D. (2001). Developing innovation capability in organisations: a dynamic capabilities approach. International journal of innovation management, 5(03), 377-400.

Liao, S. H., Fei, W. C., & Chen, C. C. (2007). Knowledge sharing, absorptive capacity, and innovation capability: an empirical study of Taiwan's knowledge-intensive industries. Journal of information science, 33(3), 340-359.

Lin, H. F. (2007). Knowledge sharing and firm innovation capability: an empirical study. International Journal of manpower, 28(3/4), 315-332.

López-Nicolás, C., & Meroño-Cerdán, Á. L. (2011). Strategic knowledge management, innovation and performance. International journal of information management, 31(6), 502-509.

Mathuramaytha, C. (2012). Developing Knowledge-Sharing Capabilities Influence Innovation Capabilities in Organizations–a Theoretical Model. In International Conference on Education and Management Innovation IPEDR, 30. 285-291.

Matzler, K., & Mueller, J. (2011). Antecedents of knowledge sharing–Examining the influence of learning and performance orientation. Journal of Economic Psychology, 32(3), 317-329.

Mehmood, K. K., & Afzal, M. A. (2019). Six Sigma and Absorptive Capacity Affecting Firm Innovation and Performance. Pakistan Journal of Social Sciences (PJSS), 39(4), 1583-1597.

Mei, S. E., & Nie, M. (2007). Relationship between knowledge sharing, knowledge characteristics, absorptive capacity and innovation: An empirical study of Wuhan optoelectronic cluster. The Business Review, 7(2), 154-161.

Mumford, M. D. (2000). Managing creative people: Strategies and tactics for innovation. Human resource management review, 10(3), 313-351.

Mumford, M. D., Hunter, S. T., & Bedell-Avers, K. E. (Eds.). (2008). Multi-level issues in creativity and innovation. Emerald Group Publishing Limited.

Nevalainen, T., & Maijala, M. (2012). Creative management in TAMK Proacademy. Development and Learning in Organizations: An International Journal, 26(6), 17-19.

Nonaka, I. (1994). A dynamic theory of organizational knowledge creation. Organization science, 5(1), 14-37.

Parthasarathy, Rangarajan; Huang, Chenglei and Ariss, Sonny. (2011). Impact of Dynamic Capability on Innovation, Value Creation and Usaha Leadership The IUP Journal of Knowledge Management, 9(3).59- 73.

Porter, M. E. (2011). Competitive advantage of nations: creating and sustaining superior performance. Simon and Schuster..

Pratoom, Karun & Savatsomboon,Gomon. (2012). Explaining factors affecting individual innovation:The case of producer group members in Thailand. Asia Pac J Manag, 29, 1063–1087

Presutti, M., Boari, C., Majocchi, A., & Molina‐Morales, X. (2019). Distance to Customers, Absorptive Capacity, and Innovation in High‐Tech Firms: The Dark Face of Geographical Proximity. Journal of Small Business Management, 57(2), 343-361.

Rafique, M., Hameed, S., & Agha, M. H. (2018). Impact of knowledge sharing, learning adaptability and organizational commitment on absorptive capacity in pharmaceutical firms based in Pakistan. Journal of Knowledge Management, 22(1), 44-56.

Reychav, I., Stein, E. W., Weisberg, J., & Glezer, C. (2012). The role of knowledge sharing in raising the task innovativeness of systems analysts. International Journal of Knowledge Management (IJKM), 8(2), 1-22.

Riana, I. G., Rihayana, I. G., Kumala Ratih, I. A. D. (2019). Creating Innovation Through Knowledge Sharing and Absorptive Capacity, Polish Journal of Management Studies. 19 (1), 338 – 352

Ritala, P., Husted, K., Olander, H., & Michailova, S. (2018). External knowledge sharing and radical innovation: the downsides of uncontrolled openness. Journal of Knowledge Management. 22(5), 1104-1123

Rosenbusch, N., Brinckmann, J., & Bausch, A. (2011). Is innovation always beneficial? A meta-analysis of the relationship between innovation and performance in SMEs. Journal of business Venturing, 26(4), 441-457.

Ruckstuhl, K., Amoamo, M., Hart, N. H., Martin, W. J., Keegan, T. T., & Pollock, R. (2019). Research and development absorptive capacity: a Māori perspective. Kōtuitui: New Zealand Journal of Social Sciences Online, 14(1), 177-197.

Seidler-de, A.R. and Hartmann, E. (2008). The use of tacit knowledge within innovative companies: knowledgemanagement in innovative enterprises. Journal of Knowledge Management. 12 (1), 133-147.

Shahin, A & Zahra, Z. (2010). Developing a relationship Matrix for Organizational Learning and Innovativeness: With A Case Study in a Manufacturing Company. International Journal of Business and Management. 5 (.7)

Srivastava, A., & Gupta, R. K. (2007). Leveraging knowledge management for organizational innovation and creativity.

Standing, C., & Kiniti, S. (2011). How can organizations use wikis for innovation?. Technovation, 31(7), 287-295.

Tsai, W. (2001). Knowledge transfer in intra-organizational networks: Effects of network position and absorptive capacity on business innovation and performance. The Academy of Management Journal. 44 (5), 996-1004.

Tzokas, N., Kim, Y. A., Akbar, H., & Al-Dajani, H. (2015). Absorptive capacity and performance: The role of customer relationship and technological capabilities in high-tech SMEs. Industrial Marketing Management, 47, 134-142.

Urbancova, H. (2013). Competitive advantage achievement through innovation and knowledge. Journal of competitiveness, 5(1). 82-96.

Verbano, C., Crema, M., & Venturini, K. (2015). The Identification and Characterization of Open Innovation Profiles in Italian Small and Medium‐sized Enterprises. Journal of Small Business Management, 53(4), 1052-1075.

Wang, S., & Noe, R. A. (2010). Knowledge sharing: A review and directions for future research. Human resource management review, 20(2), 115-131.

Wang, C. L., & Ahmed, P. K. (2004). The development and validation of the organisational innovativeness construct using confirmatory factor analysis. European journal of innovation management, 7(4), 303-313.

Wang, Z, & Wang, N. (2012). Knowledge sharing, innovation and firm performance. Expert Systems with Applications 39, 8899–8908.

Wasko, M. M., & Faraj, S. (2005). Why should I share? Examining social capital and knowledge contribution in electronic networks of practice. MIS quarterly, 29(1), 35-57.

Xie, X., Zou, H., & Qi, G. (2018). Knowledge absorptive capacity and innovation performance in high-tech companies: A multi-mediating analysis. Journal of Business Research, 88, 289-297.

Yang, J. T. (2007). The impact of knowledge sharing on organizational learning and effectiveness. Journal of Knowledge Management, 11(2), 83-90.

Yang, G., Wang, H., & Huang, J. (2019). A Model of Trust Knowledge Based on Trust Relationship and Knowledge Sharing. In The International Conference on Natural Computation, Fuzzy Systems and Knowledge Discovery, 147-153)

Yaseen, S. G. (2019). Potential Absorptive Capacity, Realized Absorptive Capacity and Innovation Performance. In International Conference on Human Interaction and Emerging Technologies (pp. 863-870).

Zahra, S. A., & George, G. (2002). Absorptive capacity: A review, reconceptualization, and extension. Academy of management review, 27(2), 185-203.

Zhang, J., Jiang, H., Wu, R., & Li, J. (2019). Reconciling the dilemma of knowledge sharing: a network pluralism framework of firms’ R&D alliance network and innovation performance. Journal of Management, 45(7), 2635-2665.