The aim of this study is to examine how transformational and transactional leaders, boost the employees’ innovative work behaviour, directly or through work engagement, organizational climate for innovation and absorptive capacity in Latin American firms. A non-random sample of 1429 employees was used who had been working at least one year in the current company. The sample, composed of workers from different industries, was collected in postgraduate programs of business schools from seven Latin American countries. A multi-group structural equation model was built with the involved variables, which adopted two different conditions: i.e., unconstrained and constrained questionnaire measurement weights. According to the results, leadership by itself is insufficient to promote employees innovative work behaviour. Transformational and transactional leadership exert effect on this behaviour...