Theoretical evidences provide that the ability of construction firms to innovate is strongly related to their structural characteristics. This relationship is essentially vital in understanding challenges firms face in terms of their capacity to provide innovative solutions. However, the structural characteristics of construction firms seem largely ignored in research within the construction industry. Extant theories show that the Structural Characteristics—Innovation relationship is mediated by Corporate Entrepreneurship. This study assessed construction firms’ innovativeness with respect to their leadership (transformational and transactional) styles. A questionnaire survey for Leadership construct was designed and targeted at Construction Firms. A sample size population of 468, using Yamane’s formula with Salkind adjustment, was got. Data were collected from middle level managers who provided information about their firms, selected based on an unrestricted random sampling design. Data was analysed using descriptive and inferential statistics. Major findings show that Transformational rather than Transactional Leadership is most dominate in Construction Firms, with regards their innovativeness. It was suggested that, given that these deficiencies are basically market driven rather than deliberate preferential actions of Construction Firms, improvement considerations on Innovations in construction should take a holistic view of the industry particularly looking at the nature and structure of the Construction Market.