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Leadership capability development through the application of knowledge management concepts as human capital in an organization is required to achieve a sustainable competitive advantage. This article was aimed at analyzing whether or not knowledge management can be a theoretical framework in developing leadership capability as a human capital in an organization. This research was conducted in literature study approach. it was done by systematically investigating the basic theory and contemporary result findings. The results of the analysis indicated that, although the organization has a focus on enhancing human capital capability, leaders have the potential to influence perceptions of the human capital benefits of its employees. Employees have the greatest potential to gain these benefits through their inclusion in the process of applying knowledge management, developing organizational culture and encouraging communication among employees. The implications of this analysis are that human resource managers should intensively carry out training for managers to develop their leadership behaviors, as these behaviors will contribute to improving human capital whereby an organization can achieve competitive advantage. The analysis contributes to the development of leadership literature to enrich the concept of leadership behavior as a variable that can increase human capital in an organization.

The Analysis of Knowledge Management Implementation and Relationship-oriented Leadership Behavior in Developing Organizations’ Human Capital