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Evidence in the literature from several business sectors shows that exploratory and exploitative innovation strategies are complementarily important for competitiveness. Our empirical findings reinforced those evidences in the context of software development companies. The innovative behaviour of individuals is an essential ingredient to success in both types of innovations strategies and leaders can have a big influence on this behaviour. Adopting a leadership style that combines transactional and transformational practices is more likely to produce effective results in supporting innovative behaviour. In software development, project managers and other group leaders should be stimulated and supported in adopting such practices to create the conditions for innovative behaviour to thrive.