Abstract

Existing literature on leader-member exchange differentiation (LMXD) offers a meaningful view into the multilevel outcomes associated with this phenomenon. However, despite the rapid growth of literature on LMXD, scholars lack a complete understanding of its antecedents or the processes that cause leaders to differentiate among members of a workgroup. We address this issue by using social capital theory to propose that leaders perceive their followers’ social networks as potential resources to grow their own social capital. Because each follower has unique social networks, we propose that leaders differentiate LMX among followers depending on which followers provide them with access to the most social resources. In this conceptual paper, we posit that leaders attribute status to followers depending on the structure of their social networks and their position within those networks, and that key contingencies such as a team’s psychological safety climate or a leader’s ambition influence the relationship between social network characteristics and LMXD. Overall, our conceptual paper provides a unique multilevel perspective of LMXD and provides important insights for both researchers and practitioners alike.

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