Goal orientations, leader-leader exchange, trust, and the outcomes of project performance

Abstract

Previous research demonstrates the importance of goal orientation, leader-leader exchange, and trust in work engagement and performance. However, how the relationships among these three variables influence project performance remains unclear. Complementing and extending prior research, this study uncovers how leader-leader exchange and trust affect the relationship between goal orientations and project performance. A cross-sectional analysis of 320 auditing project managers from 50 financial service companies shows that leader-leader exchange and trust mediate how goal orientations influence project performance. We also find that trust further moderates the effect of leader-leader exchange on project performance. Subsequent quantitative analysis of structural equation modeling reveals that leader-leader exchange has the largest direct effect on project performance; team-mastery goal orientation has the second-largest direct effect but the largest total effect. Implications for research and practice are discussed.