Wisdom is an elusive concept, and hence has rarely been seen to occupy space in organizational literature. Therefore, very little research has been done in this area. The first work of this kind may be found in a conceptual study by Boal and Hooijberg (2001). This study by Boal and Hooijberg (2001) has linked the emergent theories such as cognitive, behavioral complexity and social intelligence. These form the foundation for absorptive capacity, capacity to change and managerial wisdom. The study has also identified new theories such as vision, charisma and transformational leadership theories moderating the relationship between cognitive and behavioral complexity and social intelligence and absorptive capacity, capacity to change and managerial wisdom. These then lead to strategic leadership which helps in organizational effectiveness. Though the aforementioned study brought into management literature the concept of wisdom, it did not look into wisdom literature per se. Also, the study does not develop a meaningful relationship between transformational leadership and wisdom. Identifying this gap, this study inquired into two literatures: wisdom and leadership, specifically transformational leadership literature, seeking to find a relationship between the two literatures.

Literature Review: Transformational Leadership
Burns (1978) distinguished between two types of leadership: transactional and transformational. Transactional leadership refers to the bulk of leadership models, which focus on the exchanges that occur between the leaders and their followers (Northouse, 2003). In the classroom, teachers are being transactional when they give students a grade for work completed. In the work context, the boss is being transactional when he suggests the promotion of his/her subordinate owing to a good performance appraisal. This exchange aspect of transactional leadership is common and can be experienced throughout all types of organizations.

In contrast to transactional leadership, transformational leadership refers to the process whereby an individual engages with others and creates a connection that raises the level of motivation and morality in both the leader and the follower. This type of leader is attentive to the needs and motives of followers and tries to help followers reach their fullest potential (Northouse, 2003). In a similar vein, Bass and Avolio (1990, p. 735) differentiate between transformational and transactional leadership. According to them, “Transactional leaders exert influence by setting goals, clarifying desired outcomes, providing feedback, and exchanging rewards for accomplishments. Transformational leaders exert additional influence by broadening and elevating followers’ goals and providing them with confidence to perform beyond the expectations specified in the implicit or explicit exchange agreement.” Burns points to Gandhi as the classic example of transformational leadership.

Organizational Behavior Journal, Wisdom and Leadership, A Conceptual Study, the Link Between
the Two Literatures, Transformational Leadership, A Model of Transformational Leadership, Transformational Leadership Factors, Idealized Influence, Inspirational Motivation, The Cognitive Aspect, The Affective Component.