An exploration of leader member exchange influencers in the hospitality industry

Abstract

The aim of this research is to contribute to Leader Member Exchange (LMX) theory and knowledge on leader member exchange by exploring the influencers of LMX. Much of past research within the field of LMX has relied on a cause-effect approach to examine dyadic exchanges and their impact on LMX strength likewise has drawn links between the strength of LMX and individual and organisational outcomes. This study explores the influencers of LMX external to the dyadic relationship to examine how they affect LMX. The hospitality industry was chosen as the context within which to conduct this research as it is heavily reliant on exchanges and shares similarities with the LMX construct. In 2016 a total of 19 leaders and 21 members were interviewed from 6 different hospitality venues in India, using the critical incident technique. The data was then analysed thematically over two stages:- 1) NVIVO coding and 2) manual analysis. Findings revealed that LMX was not entirely constructed on dyadic exchange and contributes to knowledge by identifying 4 dimensions external to the dyad that acted as influencers: Member to Member Exchange (MMX), Leader to Leader Exchange (LLX), Leader 1 to Leader 2 Exchange (L1L2X) and Contextual Entity Exchange (CEX). Additionally, with regard to the hospitality context as an influencer, 12 tools of assessment were identified to have been used by leaders and members to construct their LMX relationship. The influencers of any particular dyad could have been from a single influencer or a combined effect stemming from multiple influencers and this was found to vary depending on the leader-member dyad in question; thereby contributing to knowledge by establishing a framework of potential influencers external to the dyad and evidencing that LMX was not constructed on dyadic exchanges alone.