This study examines the adaptability of transactional leadership (TL) in Chinese private universities through an organizational ecology lens. Confronting three ecological pressures—policy uncertainty (e.g., 2021 Private Education Regulations), resource scarcity (receiving only 12% of public funding despite enrolling 32% of undergraduates), and intensifying competition (projected 27% enrollment decline by 2035)—we investigate how TL mediates institutional survival and innovation trade-offs. Using a sequential mixed-methods design (qualitative case studies of 3 Eastern Chinese universities + quantitative survey of 287 faculty/administrators), we validate a moderated mediation model. Key findings reveal: (1) TL ensures rapid compliance and resource efficiency during crises (β=0.68, p<0.001; e.g., contract restructuring within 8 weeks post-policy shifts), significantly boosting accreditation success (OR=4.2, p=0.01); (2) TL imposes substantial innovation costs, suppressing high-risk research through punitive KPIs (β=-0.32, p=0.003) and reducing niche diversification (r=-0.47, p=0.008). We propose a hybrid leadership protocol with "protected R&D zones" to reconcile efficiency-innovation tensions. This research pioneers the integration of Hannan and Freeman’s (1977) selection mechanisms with leadership plasticity theory in non-Western higher education contexts.