LMX, RLMX and Job Involvement: Effects of Leader’s Power Distance Orientation and Promotion Criteria

Abstract

A multi-level model based on social information processing theory is used to explain how and when the leader-employee social exchange relationship relates to employee’s job involvement simultaneously at the vertical dyad level (leader-member exchange; LMX) and through the horizontal group context (relative leader-member exchange; RLMX). Based on the data collected from 113 team leaders and their 452 corresponding employees, the results showed that both the LMX and RLMX positively related to employees’ job involvement via their perceived informal status. Moreover, moderated path analysis revealed the indirect relationship between LMX and job involvement was stronger when the leader had lower power distance orientation and absolute promotion criteria were used in the team. The indirect relationship between RLMX and job involvement was stronger when the leader had higher power distance orientation and adopted absolute promotion criteria.