Reciprocal Relationships between Leader-Member Exchange (LMX) and Job Satisfaction: A Cross-Lagged Analysis

Abstract

While previous research has mainly emphasised the importance of leader– member exchange (LMX) to job satisfaction, there is a lack of research on reciprocal relationships between job satisfaction and LMX. In this study, we not only suggest that good LMX increases job satisfaction, but that job satisfaction can also enhance high-quality supervisor–employee relationships. A full cross-lagged panel analysis was used to test reciprocal relationships between LMX and job satisfaction. Employees (N = 279) of a large information technology company filled out questionnaires at two times, with a time lag of 3 months. In line with our predictions, findings revealed a positive relationship between LMX and job satisfaction both at Time 1 and Time 2. Moreover, LMX at Time 1 predicted the increase of job satisfaction at Time 2, and job satisfaction at Time 1 predicted the increase of LMX at Time 2. The results demonstrate the need to consider reciprocal relationships between job satisfaction and LMX when explaining employees’ workplace outcomes. Our findings are discussed in terms of positive psychology theory.