Kahya, Cem; Naralan, Abdullah; Yıldız, İbrahim

The purpose of this study is to examine the relationships between the perceptions oftransformational leadership and knowledge based organization and organizational knowledgecreation process called knowledge management capabilities. The sample of this study was consisted of90 firms registered Republic of Turkey Small and Medium Enterprises Development Organization inErzurum. The survey study was conducted on the employees of these firms. As a result of the researchshowed that transformational leadership both affected knowledge based management andorganizational knowledge creation process significantly and positively, and knowledge based management has more effects on organizational knowledge creation process significantly andpositively.

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