Abstract
Past research suggests that interactional justice plays a pivotal role in facilitating high-quality leader-member exchange (LMX), with downstream implications for employee performance. Nonetheless, this research often fails to consider the broader context in which these relationships develop. Drawing from attribution and social information processing theories, we suggest that interactional justice differentiation and group-level relationship conflict are two important contextual factors that determine the extent to which interactional justice facilitates high-quality LMX. Multilevel, multisource data from 203 full-time employees in 44 work groups at a large electronics manufacturing company indicate that the effect of interactional justice on LMX is strongest under two conditions: when interactional justice differentiation is low, and when group-level relationship conflict is high. Through LMX, these multilevel moderated effects in turn have indirect effects on employees' task and creative performance. We conclude by highlighting several key theoretical and practical implications of our findings.
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