This study sheds light on the mediating processes by which transformational leadership influences follower performance and innovation, respectively. We hypothesize that transformational leaders boost follower performance by stimulating organizational citizenship behavior, whereas they enhance follower innovation by triggering controversial discussion of task related issues (debate). On the contrary, we do not expect these mediating effects to hold for the relationship between transactional leadership and follower performance and innovation, respectively. Our hypotheses were confirmed in an empirical study of N = 91 leaders from 91 German companies. Conclusions for leadership research are drawn. Key words: debate, innovation, organizational citizenship behavior, transactional leadership, transformational leadership
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