This chapter investigates the role of innovation leadership on human capital management, focusing more on the mediating role of organisational culture in the context of the Ethiopian healthcare sector. As healthcare organisations breast the growing mould, understanding the dynamics that exist amongst leadership as well as human capital is crucial. The empirical results suggest that innovation leadership has a significant impact on human capital management, where organisational culture mediates human capital management as a significant factor. This mediating effect speaks of the importance of fostering a culture of support so as to optimise the effectiveness of innovation leadership initiatives. The chapter concludes by outlining some practical implications for healthcare administrators in Ethiopia, which include a call for focused leadership development programmes and cultural enhancement programmes to better harness human capital. These contributions add value to a wider debate about organisational effectiveness within the healthcare sector.