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The main purpose of this paper is to test the relationship between leadership competencies and effectiveness, with constraints as a mediating variable, and to introduce the main assumptions of the Bounded Leadership Model (BLM).

The total sample included 242 leaders in a top managerial position. Data were collected directly from leaders via self-reports. In total, five hypotheses were formed which related to the relationship between leadership competencies and effectiveness and the role of constraints. Hypotheses were tested by analysing several regression models and mediation effects. Moreover, internal consistency and construct validity were assessed by calculating Cronbach’s alpha and assessing the intercorrelations between study variables.

The study results demonstrate that leader’s competencies are positively related to leadership effectiveness. The authors also found an indirect effect of leadership competencies on effectiveness via constraints. Overall, it can be concluded that the scales included in the BLM have satisfactory reliability and validity indicators.

The paper examined the relationship between leadership competencies and effectiveness with constraints as a mediator. Moreover, it introduces the BLM which takes a broader view on leadership and includes variables that seem to play an important role in leaders’ adjustment and success. These findings can be applied in different training processes and also in assessment and development centres to serve as a facilitator in the process of enhancing leadership competencies and effectiveness and in overcoming leadership constraints.

The study overcomes previous research limitations because it offers a selection of leadership competencies that play an important role in leadership effectiveness, as well as may serve as a potential facilitator in the process of overcoming individual constraints. This knowledge can be used for future research and practical purposes.