Abstract
Demographically diverse leader-member relationships are predominantly studied based on similarity-attraction theory. However, empirical research examining the effect of similarity and dissimilarity on leader-member exchange (LMX) quality has resulted in inconsistent findings. I propose a new theoretical model which suggests that the LMX quality of demographically diverse leader-member dyads is affected by informal and formal status and power inequalities. My propositions, which lead to different outcomes than those of similarity-attraction theory, draw primarily upon social dominance theory and show how inequalities in demographic status and power and in positional status and power intertwine to affect LMX quality. Theoretical contributions and future research opportunities are discussed.
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