Numerous studies have recognised the importance of transformational leadership style for encouraging employees’ creativity. Self‐regulation studies have highlighted the influence of a promotion focus on employees’ creative behaviours. Yet both leadership and self‐regulation theories have paid less attention to the role transactional leadership style and situational prevention regulatory focus may play in affecting employees’ creativity. In this article we present a theoretical model which examines transformational and transactional leadership styles and both promotion and prevention situational self‐regulatory focus (SRF). The model suggests that while transformational leadership promotes creativity, at least partially by enhancing follower's situational promotion SRF, transactional leadership style (transactional active) is aligned with followers’ prevention situational SRF, which is associated with leaders’ hindering of followers’ creativity. Findings from two studies, an experimental study (N = 189) and a field study (N = 343 employees and 75 managers), support this model, showing that the relationship between different types of leadership and creativity are more complex than previously regarded. The theoretical and practical implications are discussed.
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