In this research, we used the hypothesis model to explore the moderating effect of transformational leadership (TL) on knowledge management (KM) and organizational effectiveness (OE). The model was tested on 524 research and development (R&D) professionals at 21 research institutes of the Mongolian Academy of Sciences (MAS). The results showed that TL is a moderator between KM and OE. In addition, the results supported the fact that TL and KM have a reinforcement interaction effect on OE. Therefore, the highest level of OE is achieved when both TL and KM are at a high level. Thus, TL was determined to be the most effective and appropriate leadership style for use in R&D organizations in Mongolia.

b achieve the optimal control of mat,erial removal rate

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