<p>Global business competition is pushing firms to cut costs and maximize efficiency in pursuit of long-term competitive dominance. For the purpose, firms are seeing their supply chains as potential area for innovation in order to reduce costs and increase responsiveness. This study delves into the complex dynamics of leadership and innovation towards supply chain efficiency in Pakistan’s service sector. The study collected a data of 238 valid responses through snowball sampling technique from services firms in Pakistan. SPSS 22.0 and WarpPLS 7.0 were used for analysis of conceptual framework. The findings disclosed that innovative leadership is very influential when it comes to information technology and process improvement in supply chains. Furthermore, the study underscores the value of perspective of supply chain innovation in mediating leadership and efficiency presenting new insights on strategic leadership in volatile contexts of service operations. This study presents a new avenue of investigation into the effects of innovative leadership on supply chain effectiveness in the service sector of Pakistan hitherto un-investigated in prior research. The recommendations presented may help the service enterprises to make appropriate leadership and technology investment decisions with a view of improving operations performance and sustaining growth in the constantly competitive environment.</p>