LAUSR

The study on which this paper is based examined the effect of transformational and transactional leadership styles as well as the effect of each component of transformational and transactional leadership on innovative behaviour. A sample of 3 180 respondents from 52 South African companies participated in this research. Two main hypotheses and six sub-hypotheses were tested using multiple regression analysis with and without interaction terms. The results indicate that it is useful to utilise both transformational and transactional leadership styles to enhance employees' innovative behaviour. The study substantiated the expected positive relationship between transformational and transactional leadership style and innovative behaviour. Furthermore, the results showed that amongst the components of these leadership styles, inspirational motivation, intellectual stimulation and contingent reward positively influence innovative behaviour. The results showed no relationship between individual consideration, management-by-exception and innovative behaviour. Contrary to expectations, the results revealed a negative relationship between idealised influence and innovative behaviour. Recommendations and suggestions for further research are provided.