Exploring work unit context and leader–member exchange: a multi‐level perspective

Leader–member exchange relationships have rarely been explored within the context of the work unit. Employing a sample of 285 employees of a southeastern county library system, the work unit contextual factors of work group size, work group cohesiveness, organizational climate, and leader power were examined for their relationship with LMX from the subordinate's perspective, using a within and between analysis (WABA) approach. All of the contextual variables except size were significantly related to LMX. The WABA and r_WG analyses revealed that effects occurred at both within‐ and between‐group levels, indicating individual difference effects. Thus, practitioners should emphasize enhancements to group and organizational processes as well as contributions toward relationship building in LMX dyads. Future research should expand the network of contextual variables that may have potential relevance with LMX, since this study demonstrated that the work context in which the dyad resides contributes in part to the LMX phenomenon. Additional study of the work unit size and LMX relationship is also warranted, as the current research failed to replicate previous research with a predicted negative relationship. Copyright © 2000 John Wiley & Sons, Ltd.     

A multilevel study of group‐focused and individual‐focused transformational leadership,social exchange relationships,and performance in teams

Using matched reports from 73 team leaders and 359 of their members across 23 companies in Korea, we examined a multilevel model where group‐ and individual‐focused transformational leadership and their influence processes operate at the team and dyadic levels independently and interactively to be associated with team and member performance. Results indicated that group‐focused transformational leadership was positively associated with team performance through team member exchange (TMX), whereas individual‐focused transformational leadership positively related to team members' in‐role and extra‐role performance through leader–member exchange (LMX). TMX not only positively mediated the relationships between group‐focused transformational leadership and member performance after controlling for LMX but also positively moderated LMX–performance relationships. Moreover, the indirect effect of individual‐focused transformational leadership through LMX on member performance was contingent upon the level of TMX. Theoretical and applied implications are discussed. Copyright © 2015 John Wiley & Sons, Ltd.     

Leader–member social exchange (LMSX): development and validation of a scale

In the last 10 years, research devoted to the construct of leader–member exchange (LMX) has increasingly relied on the tenets of social exchange as a theoretical foundation to propose and test relationships between supervisor‐subordinate dyads and variables of significant consequence. Despite the theory underpinning such relationships, researchers continue to measure LMX with scales developed to assess vertical dyad linkage (VDL), not social exchange. To address this concern, we investigated the content validity of LMX7 (the most widely cited measure of LMX) and LMX‐MDM (a popular multidimensional measure of LMX). Findings from content validity assessments by 25 LMX experts revealed LMX7 and LMX‐MDM items are not representative of the construct of social exchange. As such, we undertook a series of studies to develop a new scale we label, leader–member social exchange (LMSX). Results indicate LMSX is able to assess different, as well as the same, components of the supervisor–subordinate relationship as previous scales while being more theoretically consistent with the notion of social exchange. Copyright © 2007 John Wiley & Sons, Ltd.     

Impact of authentic leadership on performance: Role of followers' positive psychological capital and relational processes

Authentic leadership has received considerable attention and research support over the past decade. Now the time has come to refine and better understand how it impacts performance. This study investigates the moderating role followers' positive psychological capital (PsyCap) and the mediating role that leader–member exchange (LMX) may play in influencing the relationship between authentic leadership and followers' performance. Specifically, we tested this mediated moderation model with matched data from 794 followers and their immediate leaders. We found that authentic leadership is positively related to LMX and consequently followers' performance, and to a larger degree, among followers who have low rather than high levels of PsyCap. Our discussion highlights the benefits of understanding the roles of relational processes and followers' positive psychological resources involved in the effectiveness of authentic leadership and how they can be practically implemented. Copyright © 2012 John Wiley & Sons, Ltd.     

The missing link? Implications of internal,external, and relational attribution combinations for leader–member exchange,relationship work,self‐work,and conflict

Attributions are causal explanations made by individuals in response to important, novel, and/or unexpected events. Numerous attribution theories have examined how people use information to make attributions and how attributions impact an individual's subsequent emotions and outcomes. However, this research has only recently considered the implications of dyadic‐level attributions (i.e., relational attributions), particularly in the context of leader–follower relationships in organizations. Therefore, the purpose of this theoretical paper is threefold. First, we integrate research on attributional biases into the research on relational attributions. Second, we integrate and extend attribution theory to consider the implications of convergent and divergent internal, external‐person, external‐situational, and relational attributions for leader–member exchange (LMX) quality, relationship work, self‐work, and conflict. Third, we make the implicit ranking of attribution combinations and the resultant levels of relationship work explicit. In doing so, we contribute to attribution theory and research by proposing how attribution combinations produce positive and negative outcomes that are both intrapersonal and interpersonal. Further, we contribute to the LMX literature by explicating how leader–follower attribution combinations influence relationship quality.     

Personal need for structure as a boundary condition for humor in leadership

Recent research has established a positive relationship between humor in leadership and organizational behavior variables. However, neither the mechanisms nor the boundary conditions of the positive effects of humor in leadership are completely understood. In this study, we contribute to these questions by investigating the relationship between humor in leadership and follower commitment and burnout in more detail. We propose that these relationships unfold via a relational process and specified this relational process in terms of leader–member exchange. Moreover, we assume that these relationships depend on followers' personal need for structure. We tested the hypothesized moderated‐mediation model in a two‐wave survey study with 142 employees. Our results support the proposed model. We found the predicted indirect effect of humor on commitment and disengagement to be stronger for followers low in need for structure. However, we did not find the proposed effects for emotional exhaustion. We discuss implications for leadership theory, humor theory, and for leadership training and practice. Copyright © 2016 John Wiley & Sons, Ltd.     

The supervisor POS–LMX–subordinate POS chain: Moderation by reciprocation wariness and supervisor's organizational embodiment

We present three studies providing an increased understanding of the interdependence between perceived organizational support (POS) and leader–member exchange (LMX). Using employees from a social service agency and new hires from a variety of organizations, we report evidence for a relational chain leading from supervisors' perceptions of support by the organization (supervisor POS) to the formation of high‐quality LMX relationships with their subordinates (first link), who interpret high‐quality LMX as support from the organization (subordinate POS, second link) and, ultimately, repay the organization with increased dedication and effort (examined here in terms of reduced withdrawal behavior). The relationship between supervisor POS and LMX with subordinates was strongly moderated by supervisor fear of exploitation in exchange relationships (reciprocation wariness), holding only for supervisors with low reciprocation wariness. Consistent with the view that employees perceive the organization as partly responsible for treatment received from supervisors, LMX was found to be more strongly related to POS when employees highly identified their supervisors with the organization (supervisor's organizational embodiment), and this interaction extended to reduced withdrawal behavior. Copyright © 2013 John Wiley & Sons, Ltd.     

Empirical analysis of shared leadership promotion and team creativity: An adaptive leadership perspective

Promoting shared leadership in teams and enhancing team creativity is aided by complementarity between leader and team member characteristics. We integrate insights from social learning theory and dominance complementarity perspective with the team leadership and creativity literature to explore the facilitating role of formal participative leadership for enhancing team creativity indirectly by promoting shared leadership. The relationships among formal participative leadership, shared leadership, and team creativity are bounded by team voice behavior and team creative efficacy. To test our theoretical model, we collected multisource and multiwave survey data from 382 members of 73 teams. Results revealed a significant positive relationship of participative leadership with shared leadership in teams, which in turn was positively associated with team creativity. Team voice behavior and team creative efficacy moderated these relationships, respectively, by strengthening the positive relationships. We discuss the theoretical contributions, practical implications, and future directions of our findings.     

What does team–member exchange bring to the party? A meta‐analytic review of team and leader social exchange

Both leader–member exchange (LMX) and team–member exchange (TMX) measure the quality of reciprocal exchange among employees in the workplace. Although LMX focuses on supervisor–subordinate relationships while TMX examines the relationships among team members, both have theory‐based and empirically proven relations with workplace outcomes such as job performance, organizational commitment, job satisfaction, and turnover intentions. However, it is not yet known which has more of an impact on such workplace outcomes—specifically, it is not clear if an employee's time is best spent developing vertical relationships among supervisors and subordinates (LMX) or on the horizontal relationships among team members (TMX). Accordingly, this meta‐analysis explores the incremental validity and relative importance of these two social exchange‐based constructs. The theoretical logic underlying LMX and TMX is clarified, and the parameter estimates between LMX, TMX, and work outcomes are reported. Results demonstrate that TMX shows incremental validity above and beyond LMX for some outcomes (organizational commitment and job satisfaction), but not others (job performance and turnover intentions). Also, LMX shows greater relative importance across all four outcomes. In sum, the clarification of the theoretical and empirical landscape lays a foundation for recommendations for future research. Copyright © 2013 John Wiley & Sons, Ltd.     

Understanding employee innovative behavior: Integrating the social network and leader–member exchange perspectives

By integrating social network theory and leader–member exchange (LMX) theory, we explore the effects of three types of social relationships on employee innovative behavior: weak ties outside the group, LMX, and strong ties within the group. The results from a sample in a high‐tech firm showed that LMX fully mediated the positive relationship between out‐group weak ties and innovative behavior. Furthermore, within‐group strong ties negatively moderated the second stage of this indirect relationship, such that LMX was positively and significantly related to innovative behavior only when the number of within‐group strong ties was low. The theoretical and practical implications of these findings are discussed. Copyright © 2015 John Wiley & Sons, Ltd.     

Leader–member exchange,organizational identification,and knowledge hiding: The moderating role of relative leader–member exchange

In this article, we sought to identify a new interpersonal antecedent of knowledge hiding, namely, leader–member exchange (LMX). Drawing on the group engagement model (an extension of social identity theory within the group/organization context), we built a theoretical model linking LMX and knowledge hiding. This model focuses on the mediating role of organizational identification and the moderating role of relative LMX in influencing the mediation. Using two time‐lagged studies (Study 1: n = 317; Study 2: n = 248) conducted in China, we examined our research model. Study 1 provided support for the proposed hypotheses for evasive hiding and playing dumb but not for rationalized hiding. Study 2 replicated and extended our findings. Results revealed that (a) LMX was negatively related to evasive hiding and playing dumb but not to rationalized hiding; (b) organizational identification mediated the influence of LMX on evasive hiding and playing dumb but not on rationalized hiding; and (c) relative LMX not only moderated the relationship between LMX and organizational identification but also reinforced the indirect effect of LMX on evasive hiding and playing dumb but not on rationalized hiding (via organizational identification). The implications, limitations, and future research directions are also discussed.     

Examining the interpersonal process and consequence of leader–member exchange comparison: The role of procedural justice climate

Individuals are always sensitive to their relative standing in interpersonal comparison processes of leader–member exchanges (LMXs) in teams. Little research, however, has investigated whether coworkers with a higher LMX influence the emotional and behavioral reactions of individuals with a lower LMX in different dyads. Drawing on social comparison theory and the symbolic model of procedural justice (PJ) climate, we conducted 2 independent studies—an experimental study focusing on the self‐perceived upward LMX comparison (i.e., an individual perceives that a coworker's LMX is higher than the LMX that he or she has with the supervisor; N = 203; Study 1: American working adults) and a field survey study focusing on the other‐perceived downward LMX comparison (i.e., a coworker perceives that his or her own LMX is higher than the LMX that the individual has with the supervisor; N = 177; Study 2: Chinese software engineers). Results from these studies consistently revealed that a coworker's higher LMX elicits an individual's hostile emotions when the PJ climate is low but that this relationship is buffered when the PJ climate is high. Results of both studies also showed that the coworker's higher LMX arouses the individual to direct harmful behavior toward that coworker (via the individual's feelings of hostility) when the PJ climate is low but not when it is high.     

The challenge of being a young manager: The effects of contingent reward and participative leadership on team‐level turnover depend on leader age

Effective leadership requires a leader claiming as well as team members granting the leadership position. Contingent reward and participative leadership may both facilitate this mutual process. However, these behaviors differ in the degree to which they require a leader to have status and be prototypical. Their effectiveness might thus depend on the status‐related characteristics of the leader. In this respect, we propose that younger leaders, by deviating from the leader prototype in terms of age, lack a natural status cue, which will determine the effectiveness of these two leadership behaviors in shaping turnover. Two pilot studies (N = 113 and 121 individuals) confirm that younger leaders are perceived as less prototypical and to have lower status than older leaders. Examining 83 work teams, we show that leader age differently moderates the effects of contingent reward and participative leadership on time‐lagged team turnover. For younger (compared with older) leaders, contingent reward was effective as illustrated by decreased voluntary turnover and increased involuntary turnover, whereas participative leadership, which was associated with increased voluntary turnover and decreased involuntary turnover, was ineffective. These findings point to the importance of incorporating natural status cues of leaders for understanding the effectiveness of different leadership behaviors. Copyright © 2016 John Wiley & Sons, Ltd.     

An empirical assessment of the loose–tight leadership model: quantitative and qualitative analyses

Using questionnaire and interview data, this study attempted to find out whether the organizational loose (participative) and tight (directive) practices are compatible with or contradict each other. Using the theoretical framework of Sagie's ( 1997 ) loose–tight leadership approach, our hypotheses concerned the effects of both practices on the employee's work‐related attitudes, and the mediating role of two variables, cognitive (information sharing) and motivational (exerting effort), in these effects. Data were analysed using two methodological approaches, quantitative and qualitative. Based on a quantitative analysis of the questionnaires given to 101 professional employees of a textile company, partial support was provided for the study hypotheses. A qualitative analysis of in‐depth, semi‐structured interviews with all the employees (n = 20) in one of the company divisions led to similar conclusions. Specifically, we found that although the loose and tight practices affected work attitudes, the interviewees attributed more impact to the tight practice. In addition, none of the study variables mediated the loose impact on attitudes, whereas information sharing (but not exerting effort) mediated the influence of tight practice. Finally, the qualitative analysis revealed a deeper insight into the nature of both leader practices and their possible integration in the decision‐making processes in organizations. Copyright © 2002 John Wiley & Sons, Ltd.     

Conflict,justice, and inequality: Why perceptions of leader–member exchange differentiation hurt performance in teams

To better understand why leader–member exchange (LMX) differentiation in teams may be detrimental to individual and team performance, we propose that team members' perception of LMX differentiation (PLMXD) is more important than statistical measures of LMX differentiation. Specifically, we hypothesize a multilevel model in which relationship conflict and procedural justice (climate) mediate the relationships of individual and collective PLMXDs with individual and team performance, respectively. Using a sample of 235 individuals in 53 teams, we found that individual PLMXD was negatively related to individual performance through relationship conflict perceptions, controlling for LMX. At the team level, collective PLMXD was negatively related to team performance through procedural justice climate and relationship conflict, controlling for a statistical measure of LMXD. Theoretical implications and directions for future research are explored.     

When is female leadership an advantage? Coordination requirements,team cohesion,and team interaction norms

This study seeks to understand to what extent and in what contexts women leaders may be advantageous for teams. More specifically, this study examines how team leader gender relates to team cohesion, cooperative learning, and participative communication. Furthermore, the study argues that advantages derived from female leadership may be contingent on teams' coordination requirements. I propose that as teams' coordination requirements increase (i.e., with functional diversity, size, and geographic dispersion), teams with women leaders report more cohesion and more cooperative and participative interaction norms than those with men leaders. I aggregated survey responses from the members of 82 teams in 29 organizations at the team level. Findings from hierarchical linear modeling analyses suggest that female leadership is more positively associated with cohesion on larger and more functionally diverse teams and more positively associated with cooperative learning and participative communication on larger and geographically dispersed teams. These results call for more research on boundary conditions on the relationship between leader gender and team outcomes, on the role of relational leadership on complex and diverse teams and, ultimately, on the potential mediating role of cohesion and team interaction norms on the relationship between leader gender and team performance. Copyright © 2015 John Wiley & Sons, Ltd.     

Does participative leadership enhance work performance by inducing empowerment or trust? The differential effects on managerial and non‐managerial subordinates

We examined whether participative leadership behavior is associated with improved work performance through a motivational process or an exchange‐based process. Based on data collected from 527 employees from a Fortune 500 company, we found that the link between superiors' participative leadership behaviors and subordinates' task performance and organizational citizenship behavior toward organizations (OCBO) was mediated by psychological empowerment (motivational mediator) for managerial subordinates. Yet, for non‐managerial subordinates such as supporting and front‐line employees, the impact of participative leadership on task performance and OCBO was mediated by trust‐in‐supervisor (exchange‐based mediator). Implications for theories and practices are discussed. Copyright © 2009 John Wiley & Sons, Ltd.     

Supervisor expediency to employee expediency: The moderating role of leader–member exchange and the mediating role of employee unethical tolerance

We utilize social learning theory to test the role‐modeling effect of supervisor expediency (i.e., a supervisor's use of unethical practices to expedite work for self‐serving purposes). In particular, we examine the relationship between supervisor expediency and employee expediency, as moderated by leader–member exchange (LMX) and mediated by employee unethical tolerance. We predict that employees are more likely to model their supervisors' expedient behaviors when their relationship is characterized by high‐LMX (a high‐quality exchange relationship that is rich in socioemotional support). Furthermore, we argue that supervisor expediency, especially when LMX is high, influences employees' attitudes of unethical tolerance, which then affects employees' expedient behaviors. Across 2 multisource field studies and a third time‐lagged field study, we found general support for our theoretical predictions. Theoretical and practical implications are discussed.     

Collectivism as a moderator of responses to organizational justice: implications for leader‐member exchange and ingratiation

Previous research indicates that employee justice perceptions are positively related to leader‐member exchange (LMX). We examined collectivism as a moderator of this relationship. We hypothesized that because maintaining harmonious relationships is important for collectivists, and because protecting their individual identities is not a priority, there is a weaker relationship between interactional and distributive justice perceptions and LMX for individuals high in collectivism. Instead of engaging in behaviors that would lower the quality of their LMX relationships, collectivists are more likely to use soft influence tactics, specifically ingratiation, as a response to perceived unfairness. Thus, we expected a stronger relationship between justice perceptions and ingratiation for those high in collectivism. In a sample of textile‐manufacturing employees in Istanbul, Turkey, we found that interactional justice had a weaker positive relationship with LMX for individuals high in collectivism. In addition, distributive justice had a nonsignificant relationship with LMX for those high in collectivism, whereas there was a positive relationship for those low in collectivism. Finally, for collectivists there was a negative relationship between interactional justice perceptions and frequency of ingratiation, suggesting that collectivists may use more subtle mechanisms when responding to interactional unfairness. Copyright © 2006 John Wiley & Sons, Ltd.     

Navigating uneven terrain: The roles of political skill and LMX differentiation in prediction of work relationship quality and work outcomes

Drawing from social/political influence, leader–member exchange (LMX), and social comparison theories, the present two‐study investigation examines three levels of LMX differentiation (i.e., individual‐level, meso‐level, and group‐level LMX differentiation) and further tests a model of the joint effects of political skill and LMX differentiation on LMX, relative LMX, and employee work outcomes. In Study 1, we used data from 231 employees and found support for the interactive effect of political skill and individual perceptions of LMX differentiation on LMX quality. We also found partial support for the moderating role of individual‐level LMX differentiation on the indirect effects of political skill on self‐rated task performance and job satisfaction via LMX. In Study 2, we used data from 185 supervisor–subordinate dyads and examined both meso‐level and group‐level LMX differentiation via a multilevel moderated mediation model. Results supported the moderating role of group‐level LMX differentiation and group mean LMX on the indirect effects of political skill on supervisor‐rated task performance and contextual performance/citizenship behavior as well as job satisfaction via relative LMX. Overall, the results suggest that politically skilled employees reap the benefits of LMX differentiation, as they enjoy higher absolute LMX and relative (i.e., to their peers) LMX quality. Copyright © 2016 John Wiley & Sons, Ltd.