Transformational leadership as a factor in the success of knowledge-intensive companies

The paper analyzes general trends in the development of the knowledge economy and knowledge-intensive companies worldwide and in Russia particularly. First, we consider the distinctive features of the knowledge economy, such as the transformation of the labor process and the changing nature of the workforce, which largely affect the behavior of knowledge-intensive companies, whose sole business is innovation, and require new forms of leadership. Second, we analyze how transformational leadership affects creativeness and innovations in the knowledge-intensive companies on the basis of the recent scholarly research. Third, we argue that the transformational leadership style is most appropriate for the knowledge-intensive companies mainly due to its orientation on continuous development for the individual employees and the company as a whole. We conclude with key insights on the use of transformational leadership in the knowledge-intensive companies in Russia and worldwide