SOCIAL EXCHANGE AND IDENTITY ORIENTATION IN ORGANIZATIONS.

Abstract

This article highlights a potential synergy between theory and research on identity orientation and social exchange that may help explain the formation and development of exchange relations in organizations. It emphasizes the importance of identity orientation in predicting employees' willingness to interact and cooperate with one another. In this article, it is proposed that the priming or activation of a particular identity orientation can facilitate the emergence of a particular exchange form. Several different forms of exchange relations exist, including negotiated exchange, reciprocal exchange and generalized exchange. Negotiated exchange is distinct from other forms of social exchange in that the terms of the exchange are openly discussed and the giving and receiving of benefits is direct. Typically, the terms of the exchange outline a pair of transactions that entail mutual benefit for both exchange partners. The nature of each transaction is decided simultaneously. The performance of each transaction, however, is not necessarily simultaneous. In generalized exchange, the giving and receiving of benefits occurs among three or more people who are usually members of the same social group or network. Recognizing different forms of social exchange and accounting for why they emerge represents an important step in research on exchange behavior in organizations.