Proper

Abstract

Recently, learning organization is rising as one of the most critical concept in the field of organizational studies. The learning organization can be a highly effective method for the organization to grow; it helps them produce innovative knowledge to actively respond to various environmental changes. The current study suggests that leadership is the key element in establishing an efficient learning organization. The result reveals three main findings: (1) transformational leadership, compared to transactional leadership, demonstrated stronger influence on the performance of learning organization; (2) among the subordinate factors of transformational leadership, inspirational motivation had a stronger impact than the other factors on the performance; (3) among the subordinate factors of transactional leadership, contingent reward had stronger influence on the performance than management by exception. In conclusion, the result supports that in order to maximize learning organization, the leaders should utilize transformational leadership over transactional leadership.