An important strand of thinking in leadership studies is the relationship between what leaders do and the context in which they do it. First, how does leadership vary according to different contexts? Second, how can and do leaders shape the context in which they operate?

It is widely agreed that leadership is related to, or contingent on, context and that a key prerequisite of effective leadership is the ability to understand that context. Theorists have looked at this from a number of perspectives, exploring both the influence of contextual factors on leadership, and the influence of leadership in shaping context. However, there is much less work than might be expected on this crucial set of interactions between leadership and context. Porter and McLaughlin (2006) review the theoretical and empirical knowledge about leadership and the organisational context (across all types of organisation) and conclude that there is little research that takes context into account as an analytical factor, rather than simply as part of the description of the location of a particular leadership case or situation. They argue for much more rigorous and systematic attention to understanding the impact of context on leadership and vice versa (see also Osborn et al, 2002). Grint (2000) thinks this issue of context is so important that he classifies theories about leadership according to the degree to which they pay attention to, or ignore, context as an aspect of leadership.

Goodwin (2006), writing about healthcare, observes that research has tended to focus on leadership as a determinant in shaping context, rather than vice versa – on political, economic, social and organisational context as determinants of leadership choices and styles.