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Purpose

Clarifying leadership has been a complicated and difficult task largely because the nature of leadership itself is complicated. Meanwhile, the construction industry stands for one of the most dynamic and complex industrial environments although, not much works has been conducted on leadership in the industry. This paper aims to fill this gap.

Design/methodology/approach

Based on a combination of literature review and questionnaire surveys, this paper explores the leadership style as well as transformational leadership quality of the leaders of construction companies in Iran. A quantitative research approach was adopted requiring the development and dissemination of a questionnaire survey. The research was conducted by sending 220 sets of questionnaires to the large construction companies. The analysis methods in this research were based on frequency and co‐relational study.

Findings

The research exposes the level of leaders' orientation for people and task in their leadership style as well as their transformational leadership qualities in regards of developing followers into leaders, inspire followers to go beyond their own self‐interest and give employees empowerment.

Research limitations/implications

Future research should try to address how companies and governments adapt to and shape the environmental and organizational settings in such a way that the context optimally stimulates employees' motivation and participation in leadership practices.

Originality/value

The paper offers insight into leadership style and quality of transformational leadership, focusing on construction firms in Iran.

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