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Most leadership theories are North American in origin. These theories may not be appropriate to be applied on a worldwide basis, especially in cultures, which differ in significant respects from the American culture. This study investigates the suitability of applying Bass and Avolio's transformational/transactional leadership model in a Middle Eastern country such as Egypt. A questionnaire based on Bass and Avolio's multifactor leadership questionnaire, with additional questions which were believed to reflect Egyptian culture, was administered to managers and subordinates in ten Egyptian investment banks. Usable responses were obtained from 70 managers and 173 subordinates. Factor analysis of the data revealed a factor structure, which differed in significant respects from that found on the basis of research in the USA, providing strong support for the argument that adjustment and modification of Bass and Avolio's model of leadership are required in different cultures.

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