This study advances prior theoretical research by linking transformational and transactional
behaviors of strategic leaders to two critical outputs of organizational learning: exploratory and
exploitative innovation. Findings indicate that transformational leadership behaviors
contribute significantly to adopting generative thinking and pursuing exploratory innovation.
Transactional leadership behaviors, on the other hand, facilitate improving and extending
existing knowledge and are associated with exploitative innovation. In addition, we argue that
environmental dynamism needs to be taken into account to fully understand the effectiveness
of strategic leaders. Our study provides new insights that misfits rather than fits between
leadership behaviors and innovative outcomes matter in dynamic environments. Hence, we
contribute to the debate on the role of strategic leaders in managing exploration and
exploitation, not only by examining how specific leadership behaviors impact innovative
outcomes, but also by revealing how the impact of leadership is contingent upon dynamic
environmental conditions.