Differentiated transformational leadership and knowledge sharing: A cross-level investigation

•We model the effect of dual level transformational leadership on knowledge sharing.•We examine the cross-level mediating effects of LMX and group climates.•LMX mediates the “leadership-knowledge sharing” relationship.•Climates mediate the “leadership-knowledge sharing” relationship at the group level.•Innovativeness climate and fairness climate contribute to affiliation climate.

Building on theories of differentiated leadership and knowledge sharing, this study investigated the influence of dual-level transformational leadership on three group climates, leader–member exchange (LMX), and knowledge sharing. Using data from 275 employees of 71 work groups in five companies, we found that group-focused leadership and individual-focused leadership both facilitated knowledge sharing while the three group climates and LMX acted as mediators at the group level and individual level, respectively. In addition, our analysis showed an interesting finding in Chinese organizations: an innovativeness climate and a fairness climate contributed to an affiliation climate, which in turn promoted knowledge sharing.