Abstract

Purpose – Our aim is to advance knowledge on relative leader-member exchange (RLMX), which refers to the actual level of one’s own LMX quality as compared with the average LMX within the team. Specifically, we examined whether RLMX impacts employee performance through the mediating role of performance expectancy and the moderating role of the team context (i.e., team OCB). Design/methodology/approach – Building on social comparison theory, we developed a moderated-mediation model linking RLMX and employee performance. Employees (N = 295) and supervisors ( = 103) of a large-scale insurance organisation were invited to participate in this study. Findings – Our findings supported our hypothesis that RLMX affects performance, through the mediating role of performance expectancy. Further, the way individual members respond to RLMX depends on how they interpret the social comparison information within the team context. Implications – Our findings imply that the different relationship a leader has with each follower can influence other relationships in the collective, and thus, merely looking at the dyad level is insufficient. However, this effect can be counteracted by team members who provide task assistance, positive recognition, and effective cooperation Originality/value – This study extends the theories of social comparison and LMX by providing a comprehensive picture of how and when RLMX is influential in shaping individual behaviours.

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