Beyond leader–member exchange (LMX) differentiation: An indigenous approach to leader–member relationship differentiation

Abstract

The existing literature has established that leaders differentiate among their followers; however, the focus has long been on the Western leader–member exchange (LMX) theory. This paper examines leader–member relationship differentiation from an indigenous, leader–member guanxi (LMG) perspective. Using a sample of 60 groups and 228 employees, we examined the dual effects of LMG differentiation on employee job satisfaction, organizational commitment, turnover intention, and co-worker helping behavior after controlling for LMX, LMX median, and LMX differentiation. The results of this study supported the proposed dual effects of LMG differentiation, demonstrating that LMG differentiation, in general, is detrimental to employees' work attitudes and their intentions to stay in an organization. On the contrary, interestingly enough, LMG differentiation can accentuate the positive relationship between LMG and job satisfaction, organizational commitment, and co-worker helping behaviors.