A recent theory of how knowledge is created in organizations focuses on the role of the servant leader. A key point of the theory is that servant leaders are effective in sharing leadership responsibility, and shared leadership enhances the creation of knowledge. One reason is that shared leadership leads to a free flow of information exchange among group members.

Shared leadership de-emphasizes hierarchical boundaries, which facilitates servant leaders and followers communicating freely. With less power distance between group member and leader, members believe in the importance of their opinions and suggestions, which leads to more information exchange. The exchange of information often triggers new learning.

Caring for people is another aspect of servant leadership that facilitates knowledge creation. The reason is that caring relationships facilitate the expression of diverse ideas and foster constructive reasoning and evaluation of ideas. When people feel that they are cared for, they are more willing to disclose information and put effort into processing information.