Abstract Does transformational leadership have a positive relationship to organizational culture and innovation propensity in business organizations of Pakistan? Transformational leadership has been associated with a variety of positive organizational outcomes in a number of studies. However, the outcomes of transformational leadership in Pakistan are still underexplored. The current study examined the specific relationship between transformational leadership, organizational culture, and innovation propensity among a sample of 523 organizational members in Pakistan. Our findings showed that transformational leadership is positively related to organizational culture and innovation propensity. Results also indicated that organizational culture mediates the relationship between transformational leadership and innovation propensity. Furthermore, ANOVA analyses identified differences in ratings of transformational leadership across employees' education level and company size. Also, correlation analyses found no relationship between employees' ratings of transformational leadership and employees' age and organizational tenure. Implications for practice and directions for future research are discussed.
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