leadership: leadership is a process, leadership
involves influencing processes, leadership takes place
within a group, leadership is accomplished to achieve
goals, and a leader exerts all his energies along with
other members to achieve the goals collectively.
Transformational leadership has the power to
influence the subordinates with a particular method to
yield their trust, admiration, and respect which make
the subordinates to be motivated to be able to carry
out the task well. With transformational leadership,
the followers give their trust, admiration, loyalty, and
respect toward the leader, and they are motivated to
do more than they are originally expected to do.
Dimension of transformational leadership was
initially described by: (1) idealized influence; (2).
inspirational motivation, (3). intellectual stimulation,
and (4). individual consideration.
Transformational leadership includes two
elements: relational and change (transformation).
Leading change is one of the most essential and
difficult responsibilities of a leader (Yukl, 2010).
Effective leadership is needed to revitalize and
facilitate organizations to adapt to these changes
while changing the environment. The leader's job is
to inspire people to do things differently, endure
uncertainty, and strive to achieve goals (Schafer,
2010). Transformational leadership is necessary
because a transformational leader also teaches his
followers to become leaders and encourages them to
play an active role in the movement of change
(Antonakis, 2012).
2.2 Knowledge Management
Knowledge can be categorized into two namely tacit
knowledge and explicit knowledge. Tacit knowledge
is intellectual capital inherent in its growth and
development in the form of ideas, thoughts, beliefs,
as a result of learning, experience and study of human
life. It is the intellectual asset of a person in the form
of words, printed documents, books, journals, papers,
patents, which are real assets that are useful for
human life. Explicit knowledge is a useful application
of tacit knowledge in many aspects of human life.
According to Liss (1999) Knowledge management is
a formal, directed process of determining what
information a company has that could benefit others
and then devising ways to making it easily available
to all concerned (Singh, 2008).
Knowledge management manages knowledge.
Managing means to design, organize, coordinate
knowledge to be utilized within the organization
(Huang Lin, 2012). Through knowledge
management, some types of knowledge can be
codified and stored formally. In this case, technology
has an essential role to store knowledge and facilitate
communication, culture, and value that make
knowledge management essential. Sveiby (1997)
categorizes four forms of knowledge conversion that
provide essential value to knowledge as a competitive
advantage:
Embodied to embodied knowledge
It is the process of sharing experiences and
expertise through the socialization process. The
method utilized is observation, imitation and
practice.
Embodied to represented knowledge
This is the process of translating embodied
knowledge into represented concept through
spoken words.
Represented to represented knowledge
Represented to represented knowledge produces
many combinations. Different embodied
knowledge will be combined through analysis,
categorization and other processes, with the help
of various forms of media so that knowledge
becomes rich in both form and usability. This
form of conversion occurs in educational
institutions, including universities.
Represented to embodied knowledge
This is the highest form of knowledge
conversion. A person accepts knowledge, then
trusts and uses that knowledge.
Another theory of knowledge conversion is
proposed by Nonaka and Takeuchi (1995) which
states that there are four types of conversion
processes: Socialization, Externalization,
Combination, and Internalization. The process of
activity and resource development in an organization
is the embodiment of SECI (Socialization,
externalization, combination, internalization).
The process of knowledge creation is an iterative
process of interaction of tacit knowledge and explicit
knowledge such interaction will lead to new
knowledge. According to Nonaka and Takeuchi
(1995), knowledge cycle has four components:
Socialization is a face-to-face activity between
individuals in sharing knowledge. There is a
process of tacit knowledge and explicit
knowledge.
Externalization is the process of creating tacit
knowledge an explicit knowledge. Present
knowledge into easy-to-understand form for
example form of writing.
Combination is a blend of explicit with another
explicit to make knowledge easier to
understand, such as reports.