Víctor García-Morales, Francisco Lloréns-Montes and Antonio Verdú-Jover published a paper in the British Journal of Management (December, 2008, Vol. 19 Issue 4) entitled, “The Effects of Transformational Leadership on Organizational Performance through Knowledge and Innovation”. In it they set out to prove the following hypotheses: Transformational leadership will be positively associated with knowledge slack (prior knowledge), absorptive capacity, tacitness, organizational learning and innovation. Knowledge slack will be positively associated with absorptive capacity. Absorptive capacity will be positively associated with tacitness. Tacitness will be positively associated with organizational learning. Organizational learning will be positively associated with innovation. Tacitness, organizational learning and innovation will be positively associated with performance. Size will be positively associated with strategic variables that affect organizational performance. In summary and at its core,