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The purpose of this paper is to examine the mediating role of goal clarity in the relationship between leadership styles and project success. The paper draws on full-range leadership theory, and contextualizes leadership styles such as transformational leadership style, and transactional leadership style (active management by exception, and contingent reward) to temporary project environment.

Data are collected (in year 2017) from 248 individuals working in ten large project-based organizations from different sectors, each having multiple units in Pakistan. Respondents comprise functional managers and individuals (who have lead or worked on projects), as well as dedicated project managers.

Goal clarity partially mediates the relationship between transformational leadership style and project success. However, in case of the transactional leadership style, there is no mediation as transactional leadership style is not associated with goal clarity. Furthermore, contingent reward is positively associated to project success, while active management by exception is negatively associated to project success.

Research suggests that the underlying mechanisms of the relationship between leadership styles (transactional and transformational) and project success are less clear and need to be further explored. This study contributes to literature by answering such calls, and examines possible underlying mechanisms (i.e. goal clarity) in the relationship between leadership styles and project success.