Research into the role of transformational leadership in project based organisations has generally focused on project managers or senior managers and less so on portfolio managers who oversee multiple projects to achieve business objectives. This study examines the impact of transformational leadership behaviour of portfolio managers on project performance directly and indirectly through other intervening variables such as climate for innovation and innovation championing. Using a questionnaire survey, data were obtained from 112 project managers in a UK project based organisation. Transformational leadership behaviour of portfolio managers was found to have a positive and significant relationship with project performance. Innovation championing and climate for innovation both partially mediated the relationship between transformational leadership and project performance. The study confirms the importance of portfolio managers in enhancing project performance and identifies the need for project based organisations to cultivate transformational leadership behaviour among them for enhanced performance. It also highlights the need for further exploration of the role of portfolio managers in improving project performance.

Purpose -The purpose of this paper is to explore some of the factors that influence innovation in construction professional services firms. The paper examines the role of middle managers who have responsibility for developing the right conditions that foster innovation at the business unit level. Design/methodology/approach -A theoretical framework was initially developed through a synthesis of the literature. Using a case study approach, three types of innovation were explored to illustrate the role and influence of middle managers in fostering and exploiting innovations. Findings -Findings from the study suggested that middle managers' innovation supporting behaviours influence innovation outcomes by helping development of a climate for innovation that influence championing behaviours among project managers.Research limitations/implications -The study was based on a single United Kingdom-based construction professional services firm. Nevertheless, the research contributes to the call for more qualitative approaches to understanding leadership research in construction. Originality/value -Limited research has been undertaken on the impact of leadership on construction innovation beyond senior managers. This paper seeks to contribute to addressing this gap in literature by highlighting the significant role that the middle managers play in enabling innovation in construction professional services firms contrary to well-publicised negative views on the middle managerial roles.