Balancing transactional and transformational leadership

Purpose This paper aims to explore how situational variables jointly affect the choice of leadership style. Design/methodology/approach This qualitative study is based on semi-structured interviews conducted with 11 senior leaders in the Australian Defence, including with the Chief of Defence Force. Findings The paper identifies four organizational factors (human capital, performance, time orientation and risk appetite) and two environmental factors (risk and stability) that are considered to have an effect on leader’s choice of transactional versus transformational styles. Furthermore, organizational human capital and leader’s training and experience are identified as prerequisites of leadership ambidexterity. Originality/value The findings explain how the choice of leadership style is contingent on internal and external factors, identifies several new contributing factors and explains how such factors may jointly affect the choice of leadership style.