This research paper identifies ‘Transformational and Transactional’ leadership and its contribution towards managing innovation in the technology sector in Ireland. This research has a case study approach of IBM and SAP, and the methodology used to collect the primary data is via qualitative. The conceptual framework have been created by using mixed contemporary models e.g. the added impact of transformational leadership model, innovation process model, and embodiment of situational leadership. These models have fused in conceptual framework to concentrate on the research goals. Keeping in mind the end goal to study and to actuate rich data understanding, six top executive meetings have been held with senior innovation leaders in IBM and SAP. Narrative data analysis has been practiced to support the research objectives and to figure out the reliable and practical findings. Research findings demonstrates that both initiatives - transformational and transactional, have huge contribution to innovation in technology division. while managing innovation process; every leaderships has reasons and means to practice taking into account the given circumstances and environment they work; innovation leaders predominantly start their innovation project under transformational leadership, however, they drastically change their way to transactional leadership when they face difficulties and vulnerability. Research findings raised that, transformational leadership adds to articulate vision and transactional leadership add to accomplish that vision through micro-planning and execution. Author keywords: Innovation, contribution, leadership, transformational, transactional, innovation management, innovation process models, vision, conceptual framework.