Leader–member exchange (LMX) in context: How LMX differentiation and LMX relational separation attenuate LMX's influence on OCB and turnover intention

Using the group engagement model, we hypothesize that two differentiated leadership constructs – LMX differentiation at the group level and a new construct, LMX relational separation, at the individual-within-group level – interact with LMX to affect follower citizenship behaviors (OCB) and turnover intentions. Data from 223 followers and their leaders situated across 60 workgroups demonstrate that the effects of individual perceived LMX quality are contingent upon a group's overall variability in LMX (i.e., LMX differentiation) and employees' similarity in terms of LMX with their coworkers (i.e., LMX relational separation). Specifically, the effects of high quality LMX relationships on OCB and turnover intentions are weaker when group LMX differentiation or employees' LMX relational separation is higher, rather than lower. Our findings contribute to a growing stream of multilevel LMX research incorporating climate effects and offer an alternative view of differentiated leadership in groups. Key implications for theory and practice are discussed.     

Leader-Member Exchange across two hierarchical levels of leadership: concurrent influences on work characteristics and employee psychological health

Leader-Member Exchange (LMX) theory suggests that the quality of the leader–employee relationship is linked to employee psychological health. Leaders who reside at different hierarchical levels have unique roles and spheres of influence and potentially affect employees' work experiences in different ways. Nevertheless, research on the impact of leadership on employee psychological health has largely viewed leaders as a homogeneous group. Expanding on LMX theory, we argue that (1) LMX sourced at the levels of the line manager (LM) and senior management (SM) team will be differentially linked to employee psychological health (assessed as worn-out) and that (2) these relationships will be mediated by perceived work characteristics (reward and recognition, workload management, quality of relationships with colleagues and physical environment). Structural equation modelling on data from 337 manual workers partially supported the hypotheses. Perceptions of the physical environment mediated the relationship between LMX at the LM level and employee psychological health, whereas perceptions of workload management mediated the relationship between LMX at the SM level and psychological health. These findings corroborate arguments that leaders are not a uniform group and as such the effects of LMX on employees will depend on leadership hierarchy. Implications for expanding leadership theory are discussed.     

Contextualizing LMX within the workgroup: The effects of LMX and justice on relationship quality and resource sharing among peers

While leader–member exchange (LMX) has evolved, a richer understanding continues to evade scholars due to the sustained focus on the leader–member dyad. We argue that LMX theory remains incomplete until contextual factors surrounding these pivotal relationships are accounted for including the impact of coworker exchange relationships, peer exchange, and perceptions of justice regarding individual LMX relationships. A fully crossed experimental design manipulating participant LMX and distributive justice and coworker LMX and distributive justice was employed to understand how these constructs affect coworker exchange relationships. Support was found for a causal model which specifies that justice moderates the causal relationship between LMX similarity and CWX, which subsequently leads to increased sharing of resources among coworkers. The data suggest that workgroup members are savvy to differences within individual leader–member relationships, where the sharing of resources among peers is determined by their own LMX, the LMX of their coworker and perceptions of justice of their respective LMX levels. These findings are contextualized in extant leadership research and practice.     

Use and misuse of levels of analysis in leadership research: An illustrative review of leader–member exchange

Prior reviews have focused on if leadership literature pays homage to levels of analysis; our purpose is to take stock of how well and in what ways levels issues are implemented in theory and hypotheses formulation, construct conceptualization, measurement, and data analysis. To illustrate these notions, we provide an in-depth review of 163 multi-level empirical leader–member exchange (LMX) and vertical dyad linkage (VDL) studies published between 1972 and 2012. Our findings indicate that the volume of multi-level studies in LMX has drastically increased recently and the majority of these studies cast theory and hypotheses at the same level. With regard to alignment of levels of theory/hypotheses with measurement and with data analyses, however, roughly one out of two published studies suffers from misalignment of levels. Most of this misalignment occurs in studies where the dyad level of analysis, a key component of LMX, is an explicit or implicit focus. We conclude with a discussion of the implications for the LMX literature, and present recommendations to guide multi-level leadership research.     

The role of leadership in shared mental model convergence and team performance improvement: An agent-based computational model

Research in shared mental models has immeasurably aided our understanding of effective teamwork and taskwork. However, little research has focused on the role that leaders play, if any, in influencing, developing and/or fostering shared mental models and thereby improving team performance. We developed an agent-based computational model based on McComb's theory of three-phase mental model development, where agents repeatedly share individual opinions (orientation phase), evaluate and respond to the opinions expressed by others (differentiation phase), and modify their understanding of the team based on the responses (integration phase). Leadership and team properties are represented in three experimental parameters: social network structure, heterogeneity of agents' domains of expertise, and level of their mutual interest. Participative leadership is represented by a fully connected network, while Leader–Member eXchange (LMX) is represented by a fully connected network of in-group members and several out-group members connected only to the leader. Our simulation results show that, in general, participative leadership promotes mental model convergence better than LMX. In the meantime, the team performance improvement is achieved by participative leadership only when members have both heterogeneous domains of expertise and strong mutual interest. In all other conditions, participative leadership causes the worst degradation of team performance through team development processes, while LMX is the best to minimize such team degradation. Implications and suggestions for future research are provided.     

‘Let's share!’ The mediating role of employees' self-determination in the relationship between transformational and shared leadership and perceived knowledge sharing among peers

Building on social-exchange and self-determination theory, this study aimed to contribute to the scholarly literature on leadership and knowledge sharing by simultaneously testing how shared and transformational leadership and their interrelatedness may foster employees' perceptions of knowledge sharing behaviour among peers. Additionally, we investigated the mediating role of employees' basic psychological needs satisfaction (in terms of autonomy, competence and relatedness, respectively) as an additional explanatory mechanism to reveal how shared and transformational leadership may foster individuals' perceptions of knowledge sharing behaviour among peers. We employed PLS structural equation modelling to analyse survey data obtained from professionals in an R&D unit of a knowledge-intensive firm. We found shared leadership to be the most important factor enhancing employees' perceptions of knowledge sharing among peers, both directly and indirectly through employees' satisfaction of the need for autonomy. Transformational leadership was found to foster employees' knowledge sharing ultimately, through shared leadership and the need for autonomy satisfaction. We concluded that shared forms of leadership supplemented with transformational leadership on the part of formal leaders are important in contemporary work environments as they can foster employees' perceptions of knowledge sharing among peers and contribute towards employees' self-determination, which ultimately enhances perceptions of knowledge sharing among peers.     

LMX differentiation: A multilevel review and examination of its antecedents and outcomes

We examine antecedents and outcomes of leader–member exchange (LMX) differentiation, or the variability in LMX patterns within work groups. Individual-level characteristics and behaviors of leaders and followers, group context, and organizational context variables are presented as antecedents. We review and offer theoretical extensions to research examining the outcomes of LMX differentiation at the individual, group, and organizational levels. Our aim is to contribute to a meso-model of leadership and stimulate research that attends to the core element of the LMX model–LMX differentiation.     

The servant leadership advantage: When perceiving low differentiation in leader-member relationship quality influences team cohesion,team task performance and service OCB

How does servant leaders' unique ability to place each follower's needs above their own influence relationships between followers and impact their collective performance? In a study that integrates principles of servant leadership with the social comparison theoretical framework, we tested a group-level model to examine how servant leadership induces low perceived differentiation in leader-member relationship quality (perceived LMX differentiation) within a group, which strengthens team cohesion and in turn positively influences team task performance and service-oriented organizational citizenship behaviors (service OCB). Our sample comprised 229 employees nested in 67 work teams. Structural equation modeling results indicate that servant leadership significantly predicts low perceived LMX differentiation; perceived LMX differentiation is strongly related to team cohesion such that the lower the perceived differentiation, the stronger the team's cohesiveness. And, team cohesion is also strongly related to both the team's task performance and service OCB. Perceived LMX differentiation and team cohesion mediate the effect of servant leadership on both team task performance and service OCB.     

The folly of theorizing “A” but testing “B”: A selective level-of-analysis review of the field and a detailed Leader–Member Exchange illustration

Leadership research has recently begun to emphasize the importance of examining the level of analysis (e.g., individual, dyad, group, organization) at which phenomena are hypothesized to occur. Unfortunately, however, it is still not commonplace for theory to clearly specify, and for investigations to directly test, expected and rival level-of-analysis effects. This article first selectively reviews a cross-section of theories, models, and approaches in leadership, showing generally poor alignment between theory and the level of analysis actually used in its testing. A multiple levels of analysis investigation of the Leader–Member Exchange (LMX) model is next presented. This theory has as its foundation the dyadic relationship between a supervisor and his or her subordinates. Yet, less than 10% of published LMX studies have examined level of analysis—and none has employed dyadic analysis. Using within- and between-entities analysis (WABA) and two different samples, four LMX level-of-analysis representations are tested, which involve monosource data; three of these models are then tested using heterosource data. Overall, good support is found for the LMX approach at the within-groups and between-dyads levels. Implications for aligning theory with appropriate levels of analysis in future research are considered.     

Leadership behaviors and group creativity in Chinese organizations: The role of group processes

In seeking to understand the factors contributing to work group creativity in Chinese organizations, we explored the roles of two different leadership styles (transformational and authoritarian) that Chinese leaders play in group creativity through influencing internal group processes, i.e., collective efficacy and knowledge sharing among group members. We tested our hypotheses with a sample of 163 work groups involving 973 employees in twelve Chinese companies. We found transformational leadership to relate positively but authoritarian leadership to relate negatively to group creativity, mediated by both collective efficacy and knowledge sharing among members within the group. We discuss the implications of these findings for research on group leadership, group creativity and cross-cultural management.     

The mediating effect of organizational commitment and employee empowerment: how transformational leadership impacts employee knowledge sharing intention

This study examined the underlying process through which transformational leaders provide an influence on employees’ knowledge sharing intention by concentrating on mediating roles of psychological empowerment and employees’ commitment to organizations. The direct and indirect impacts of transformational leadership on knowledge sharing were explored. In order to test the proposed hypotheses, structural equation modelling analysis was conducted with a sample of 426 full-time employees in South Korea. The results of this study showed a significant direct effect of transformational leadership on psychological empowerment and organizational commitment, which in turn had a significant influence on employees’ knowledge sharing intention. Transformational leadership had only an indirect effect on knowledge sharing intention among employees. These results bring out the importance of mediating roles of employee’s attitudes, especially organizational commitment, for promoting knowledge sharing intention among employees.     

A model of relational leadership: The integration of trust and leader–member exchange

This article presents a model of relational leadership based on a review of leader-member exchange (LMX) and interpersonal trust. This model asserts that the LMX relationship is built through interpersonal exchanges in which parties to the relationship evaluate the ability, benevolence, and integrity of each other. These perceptions, in turn, influence the behaviors predicted by LMX researchers. This integrated model of relational leadership provides insights into the dynamics of leader-subordinate relationships and resolves some of the inconsistencies in the LMX research without losing the richness and uniqueness of the exchange theory. A number of propositions for future research in relational leadership are also suggested.     

Why does transformational leadership matter for employee turnover? A multi-foci social exchange perspective

Drawing on social exchange theory, the present study investigates the underlying mechanisms through which transformational leadership influences employee turnover. Leader–member exchange (LMX) and affective commitment (AC) are proposed as supervisor-based and organization-based social exchange mechanisms respectively, exemplifying how social exchange processes occur between an employee and his/her supervisor, and between the employee and his/her organization as a whole to underpin the effect of transformational leadership on turnover outcomes. Results of structural equation modeling on a sample of 490 full-time employees working in a large telecommunication company in the PRC provided support for the notion that transformational leadership is related to both social exchange mechanisms – LMX and AC – turnover intention and turnover behavior. Furthermore, the results revealed that AC rather than LMX mediated the link between transformational leadership and turnover intention. Turnover intention also only mediated the relationship between AC and turnover behavior over time.     

Leadership across levels: Levels of leaders and their levels of impact

This article assesses 25 years of empirical leadership research in 11 top journals with the goal of understanding current practice and future needs for drawing solid conclusions about leadership at different hierarchical levels of the organization, as well as leadership’s effects on individuals, teams, units and organizations. We summarize the hierarchical level of leader and outcome level of analysis studied in different theoretical perspectives on leadership (traits, behavioral, transformational, LMX, strategic, shared) and by journal outlet. Among our findings, we observe that significantly less attention has been devoted to team- and unit-level emergent processes and outcomes, despite its conceptual relevance for leadership theory and practice. Four critical opportunities for advancing leadership science are presented.     

Cultures have consequences: A configural approach to leadership across two cultures

This research compares the influence of country membership and cultural values (power distance and individualism/collectivism) in a model of LMX and organizational change. The results reveal cultural differences in the relationships among LMX, consultation and affective commitment to organizational change, supporting prior studies. However, there are substantial differences in the moderation of the cultural values in the relationships among the research constructs at the individual level. Our results suggest that understanding national culture and its influence on leadership may be incomplete when we focus only on mean differences at the country level to examine cross-cultural differences. To address this concern, we offer a configural approach to examine the role of culture in a leadership model across two cultures (the U.S. and Korea).     

Differentiated leader–member exchange,justice climate,and performance: Main and interactive effects

Leaders form different quality leader–member exchange (LMX) relationships with their subordinates. This variable treatment termed LMX differentiation can have negative effects on individuals' behavior and attitudes. In this study, we examined the cross-level main effect of justice climate on task performance and the moderating role of justice climate on the relationship between LMX differentiation and task performance. We tested these two hypotheses using a field study of 90 subordinates nested under 27 supervisors. Procedural justice climate, not distributive justice climate, was found to positively influence subordinate task performance. Further, distributive justice climate, not procedural justice climate, was found to moderate the LMX differentiation–task performance relationship; such that the relationship was positive when distributive justice climate was high and negative when distributive justice climate was low. Findings and future directions are discussed.     

Leader-member exchange as a linking pin in the idiosyncratic deals - Performance relationship in workgroups

In the current investigation, idiosyncratic deals (i-deals; individualized work arrangements) are modeled as differentiated resources that shape leader-member exchange (LMX) relationships in workgroups. We integrate literature on leader-member exchange (LMX) with research on i-deals to argue that employee evaluations of i-deals received from the grantor –typically the leader- enhance employee perceptions of LMX, which in turn become instrumental in generating positive performance outcomes. Furthermore, because workgroup characteristics have potential implications on the relationship between a deal grantor and the deal recipient, drawing upon social identity theory of leadership, we reason that the i-deals-LMX relationship is affected by the overall value congruence among the group members. Cross-level moderated mediation analyses on multi source data obtained from 289 employees nested in 60 workgroups showed that the mediational role of LMX in the i-deals to performance outcomes relationship was weaker in high value congruence groups.     

Outcome favorability in the link between leader–member exchange and organizational citizenship behavior: Procedural fairness climate matters

The study developed an integrated model of the relationship among leader–member exchange (LMX), outcome favorability, procedural fairness climate and employee organizational citizenship behavior (OCB). Using three-phrase multilevel data from multiple sources collected from 238 employees working with 42 supervisors at manufacturing firms in China, we found that (1) LMX was positively related to outcome favorability and OCB, (2) procedural fairness climate moderated the relationship between outcome favorability and OCB, and (3) the indirect effect of LMX on OCB (via outcome favorability) was stronger when procedural fairness climate was high rather than low. The study provides insight on the LMX–OCB relationship and the integration of LMX and fairness research.     

Paternalistic leadership and employee voice in China: A dual process model

Drawing from social exchange and self-concept-based leadership theories, we investigate how paternalistic leadership — authoritarian, benevolent, and moral — affects employee voice from leader–member exchange (LMX) and status-judgment perspectives in the Chinese context. Data from 402 employees and their supervisors show that LMX and status-judgment mechanisms could work simultaneously in transmitting the influences of paternalistic leadership behaviors to employee voice. Authoritarian paternalistic leaders reduce employee voice by reducing their status judgment. Benevolent paternalistic leaders encourage employee voice by enhancing both LMX and status judgment. Moral paternalistic leaders positively influence employee voice mainly through LMX processes. We discuss theoretical and practical implications of the findings.     

Ethical leadership and employee knowledge sharing: Exploring dual-mediation paths

Drawing on social learning and self-determination theories, this study investigates the mediating effects of controlled motivation for knowledge sharing and moral identity in the relationship between ethical leadership and employee knowledge sharing. We conducted a field study with 337 full-time employees to test our hypotheses. Results supported the mediating effects of both controlled motivation and moral identity in accounting for the relationship between ethical leadership and employee knowledge sharing. Our study is among the first to examine whether and why ethical leadership predicts employee knowledge sharing. Theoretical and practical implications are discussed.