Abstract
The study integrates the social exchange and the goal orientations theories to examine the effects of leader-member exchange(LMX) on employee performance through the mediation of goal orientations. Analytical data collected from Indonesia show that LMX indeed can advance both learning and performance goal orientations. Although performance goal orientation can improve both employee task and innovative performance, learning goal orientation can promote task performance only. Moreover, performance goal orientation partially mediates the relationship between LMX and employee task performance. The study contributes to the social exchange theory by identifying critical mediators that help convert the social relationships between a leader and his/her subordinates into effective performance outcomes.
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