Innovation is commonly defined as the discovery of new ideas along with their commercial application. Creativity alone does not ensure innovativeness; the successful implementation of new ideas is fundamental to the innovation process. Central to achieving this is the presence of effective leadership capable of guiding and supporting innovative efforts. Prior theoretical studies indicate that explorative and exploitative forms of innovation are associated with different leadership behaviors, specifically transformational and transactional leadership, respectively.
This research examines the influence of transformational and transactional leadership styles on explorative and exploitative innovation. Data were collected through questionnaires administered to selected innovative organizations. The results were analyzed and used to develop a conceptual model. Findings indicate that transformational leadership fosters exploratory innovation by facilitating the development of new knowledge and the creation of novel products. Conversely, transactional leadership supports exploitative innovation through the refinement and extension of existing knowledge.
Keywords: Innovation; Explorative Innovation; Exploitative Innovation; Transformational Leadership; Transactional Leadership.

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