Transformational leadership's effect on motivation and trust : A case study of Volvo sales region EMEA

Sammanfattning: The purpose of this paper is to investigate how transformational leadership can affect trust and motivation in the chosen case subsidiary. These two factors have been proven to positively affect knowledge sharing. Therefore, this study wants to understand the effect transformational leadership might have on trust and motivation to, in turn, indirectly affect the competitive advantage derived from knowledge sharing. This study uses a mixed method approach, to get a triangulated view. Both qualitative data collected from personal interviews and quantitative data collected from a questionnaire sent to employees will be used. The interviewed respondents in this study was found to be transformational leaders, however, finding minor gaps in the comparison to the employees’ perspectives. Empowerment, support and commitment was found to increase trust while challenges, feedback, compliments and appreciation was found to increase motivation. The majority of the employees supported the interviewed respondents’ perspectives. This study has not tested more than one leadership style to rule out the effect on motivation and trust they might have. Further, this study does not look into other factors, rather than leadership, which could affect motivation and trust. Additionally, experience of the leader is not taken into consideration.