The Direct and Indirect Effects of Leader-Star Exchange on Nonstar Individual and Team Performance

Abstract

Current research highlights the importance of workplace relationships (e.g., leader-member exchange and team-member exchange) on individual and team performance. However, there is a lack of understanding of the effects of leader-star exchange relationship (LSX), defined as the dyadic relationships between team leader and team star performer. Drawing on theories of justice, we empirically examine both direct and indirect effects of LSX on nonstar individual and team performance in a three-wave multi-source, multi-level study of 190 teams, consisting of 190 leaders and 798 employees. Our findings suggest that through impacting the collective justice climate (CJC), LSX is positively related to both nonstar individual and team performance. In addition, through CJC, LSX moderates the relationships of leader-member exchange (LMX) and leader-member exchange differentiation (LMXD) on nonstar individual performance such that it significantly influences the direction of these relationships. Specifically, LSX strengthens the positive relationship between nonstar LMX and nonstar individual performance. On the other hand, LMXD is positively related to nonstar individual performance when there is high LSX between the leader and star performers and negatively related to nonstar individual performance when LSX is low. Implications of the effects of the leader’s relationship with star performers are discussed.