Leader-member Exchange Differentiation Research Articles

Leader-member exchange differentiation and followers’ psychological strain: exploring relations on the individual and on the team-level

AbstractDue to social comparison in the team, leader-member exchange (LMX) differentiation has been shown to play a crucial role for explaining follower outcomes. LMX differentiation may be beneficial for some followers, but also detrimental for others, when perceived as unfair. In order to understand the impact of LMX differentiation on work-related outcomes, LMX differentiation should be described by three properties (relative LMX position, LMX variability, and team-level LMX). The aim of the study is to focus on LMX differentiation and test relationships between different properties of LMX and followers’ psychological strain. In sum, 75 teams with 322 followers answered an online survey about their leaders’ LMX and their individual levels of psychological strain. Results of multilevel modeling showed that the relative LMX position was negatively related to psychological strain on the individual level. This relation was moderated by LMX variability and team-level LMX. However, we did not find significant relations between team-level LMX and team-level psychological strain. The present study extends previous research by looking at relations between LMX and psychological strain on an individual follower level as well as on the team level. Our results suggest that the relative position of LMX within a team seems to play a crucial role for individual follower psychological strain. Results imply that leaders should aim to improve LMX relationships within their team and to reduce differences between team members. Leadership trainings should impart knowledge and skills to improve LMX quality and include elements about LMX differentiation, its origins, as well as consequences.

Do intelligent leaders differentiate exchange relationships intelligently? A functional leadership approach to leader-member exchange differentiation.

The burgeoning literature on leader-member exchange (LMX) differentiation indicates that differentiating LMX relationships within groups has both benefits and costs when it comes to group effectiveness. Although some clarity is emerging surrounding the null total effect of LMX differentiation on group performance, we still know little about how leaders themselves shape the differentiation process. In this article, we extend theory to suggest that some leaders may differentiate more effectively than others. Drawing from functional leadership theory, we first identify a potential approach available to leaders likely to enhance their functional effectiveness-strategically investing in and developing stronger social exchange relationships with subordinates who can best help them fulfill the task functions (via task performance-based differentiation) and group maintenance functions (via contextual performance-based differentiation) specified within functional leadership theory. Embedding this potential approach within the ability-motivation-opportunity framework, we then develop a theory for which leaders are best positioned to recognize and pursue strategic relationship development this way. Specifically, we posit that leaders with stronger cognitive abilities (g) are more likely to recognize the value of such an approach, and those high in core self-evaluation are more likely to believe in their capabilities to successfully process, execute on, and persist with the approach. The results from two studies-a multisource study of leaders and team members in newly formed teams as well as a preregistered online vignette study using a sample of current and former supervisors-largely supported our predictions. (PsycInfo Database Record (c) 2024 APA, all rights reserved).

Longitudinal associations between the rates of change in family to work enrichment, leader-member exchange, and job satisfaction

By integrating the work-home resource model with the leader-member exchange (LMX) theory, we adopt a change perspective to examine the effects of the change rate in family-to-work enrichment (FWE) on that in job satisfaction through the change rate in LMX. Using a longitudinal, multilevel sample of 360 employees in 71 teams, the results of three waves of data over eight months reveal the FWE change rate is associated positively with the LMX change rate, which, in turn, is associated positively with the job satisfaction change rate. Furthermore, we show that LMX differentiation at Time 1 moderates the FWE change rate's effect on the LMX change rate over time, such that the relation is stronger when the LMX differentiation is high at Time 1. Moreover, the LMX change rate mediates the interactive effects of the FWE change rate and Time 1 LMX differentiation on the job satisfaction change rate over time. The results also show that the initial level of FWE is related positively with the LMX change rate, but not with the job satisfaction change rate. These findings emphasize the importance of studying changes in family-work research and providing new insights into the processes of the FWE change rate's effects on the change rates of important work outcomes over time.

A Purposeful Approach to LMX Differentiation: The Role of LMX With Key Members

A central idea in the leader-member exchange (LMX) literature is that leaders, due to the limited organizational and personal resources available to them, often struggle with developing and maintaining high-quality exchange relationships with all of their members. As a natural consequence, leaders typically form high-quality relationships with a select few members—often those who seem likable or are similar to the leader—while maintaining formal and distant relationships (i.e., low-quality LMX) with others. This form of differentiated treatment of members creates tensions in team dynamics. In this paper, we propose that leaders can mitigate the downsides of leader-member exchange differentiation (LMXD) for team dynamics by being more purposeful and strategic in how they differentiate in their treatment of members. Specifically, we posit that when leaders strategically develop high-quality LMX relationships with key members—individuals occupying influential positions in team social networks—such key members will engage in behaviors that buffer the negative impact of LMXD on team dynamics. Our framework integrates LMX theory with perspectives from social networks research to illustrate how strategic differentiation influences task and relational team dynamics. Finally, we discuss recommendations for empirically testing, theoretical extensions, and practical implications of this framework.

The impact of leader member exchange quality and differentiation on counterproductive and citizenship behavior in health care teams.

Organizational citizenship behavior (OCB) may increase service quality. In contrast, counterproductive work behavior (CWB) may undermine patient safety. Efforts to increase OCB and reduce CWB rely on a good understanding of their antecedents, yet there is a lack of research in health care to inform such endeavors. The aim of this study was to investigate the role of leadership, specifically leader-member exchange (LMX), in reducing CWB and increasing OCB in health care teams. Team survey data were collected from 75 teams in U.S. health services organizations. Polynomial regression and response surface analysis was used to investigate our hypotheses. For OCB, the response surface along the line of incongruence (a3) was positive and significant, and for CWB, a3 was negative and significant. The results of polynomial regression and response surface analysis indicate that OCB increases when LMX quality is high and that LMX differentiation is comparatively lower. In contrast, CWB increases when LMX differentiation is high, whereas LMX quality is lower. These findings provide useful suggestions to promote valuable extra-role behaviors in health care teams. Health care team leaders should aim to develop strong exchange relationships with all members if they wish to increase citizenship behavior and decrease counterproductive behavior. Building positive exchange relationships with only a few team members is likely to undermine citizenship behavior and increase counterproductive behavior.

Bhagavad Gita for Minimizing Dark Side of Leadership

The Leader-Member Exchange (LMX) leadership theory emphasizes the dynamic relationship between leaders and followers. Further, LMX differentiation proposes that leaders divide their teams into in-groups and out-groups based on the quality of the relationship. In this process, the criteria for selecting in-group members are majorly based on personal preferences rather than objectivity. Further, the in-group members build confidence in the leader to minimize leader insecurity in the workplace. The out-group members bear the brunch of such an understanding between the leader and in-group members. This situation can be referred to as the Dark side of leadership, where followers are given differential treatment. This study takes insights from ancient scriptures of the Bhagavad Gita (BG), where the leader is seen as a trustee, to reduce this differentiation and increase leader security. The paper attempts to explore and extract the concepts from BG and apply them to leadership theory and practice. It is found that the BG provides solutions to reduce leadership deficit (LD) and have a conducive work environment (CWE), and it does not ask for any financial investments. The paper’s findings facilitate business leaders in reducing in-group and out-group categorizing and leader insecurity leading to effective leadership for better business results.

When team members retaliate: The effect of LMX differentiation on team CWB

Leader-member exchange (LMX) differentiation, or a leader's differentiated treatments among team members, is a prevalent phenomenon in any type of organization due to constraints of personal, social, and organizational resources. Despite numerous empirical examinations of such phenomenon, the impact of LMX differentiation on group outcomes is inconsistent and inconclusive. Based on team diversity framework, we approach LMX differentiation as disparity and draw on social comparison theory and social exchange theory to examine the positive effect of LMX differentiation on team counterproductive work behavior (CWB) through a supervisory justice climate. In addition, we investigate leader competence as an essential boundary condition that influences the impact of LMX differentiation on supervisory justice climate and subsequent team CWB. Using a sample of 94 teams in South Korea, we found that LMX differentiation negatively impacts supervisory justice climate, subsequently promoting team CWB. Furthermore, when team members perceive their leader as incompetent, the positive impact of LMX differentiation on team CWB is strengthened. Theoretical and practical implications and directions for future research are discussed.

How Perceived Leader–Member Exchange Differentiation Affects Construction Workers’ Safety Citizenship Behavior: Organizational Identity and Felt Safety Responsibility as Mediators

How Perceived Leader–Member Exchange Differentiation Affects Construction Workers’ Safety Citizenship Behavior: Organizational Identity and Felt Safety Responsibility as Mediators

Research on the Influences of Task Interdependence on Team Performance in the Context of the Leader–Member Exchange Differentiation in the Public–Private Partnership Projects

Task interdependence is essential in sustainable cooperation, conflict prevention, and performance improvement of public–private partnership (PPP) project teams and promotes the sustainable development of PPP projects. Based on the theoretical logic of Input–Process–Output (IPO), integrating Team Process Theory and Leader–Member Exchange (LMX) Theory, we constructed a mediated model of task interdependence, team reflection, team performance, and leader–member exchange differentiation in PPP projects. Based on this, we conducted questionnaire research and research analysis on 168 PPP project teams. The results of the study indicate that task interdependence in PPP projects has a significant positive effect on team performance, and there is a significant mediating role of team reflection in the relationship between task interdependence and team performance. The leader–member exchange differentiation in teams not only moderates the relationship between task interdependence and team reflection and team reflection and team performance but also further moderates the indirect effect of task interdependence in PPP projects on team performance through team reflection. The findings extend the impact effects of task interdependence in engineering projects, as well as the moderating mechanisms of leader–member exchange differentiation in Chinese organizational scenarios, providing lessons for PPP project team performance management and sustainable development of PPP projects.

The Curvilinear Effect of LMX Differentiation: How Employees Evaluate and Respond to LMXD Legitimacy

The Curvilinear Effect of LMX Differentiation: How Employees Evaluate and Respond to LMXD Legitimacy

What Works for Me Does Not Work for Us: Exploring the Relationships Between LMX Differentiation and Individual and Team Performance

What Works for Me Does Not Work for Us: Exploring the Relationships Between LMX Differentiation and Individual and Team Performance

신뢰 수혜와 혁신행동

In current turbulent business environments, innovative behavior is critical to the long-term survival and growth of an organization. This study investigates the effect of being trusted by coworkers on an individual’s innovative behavior. Based on the social network perspective, we develop hypotheses regarding the effects of being trusted on employees’ innovative behavior in two dimensions of the trust relationship in a work team: competence-based trust from work-related abilities and compassion-based trust from emotional bonds between Coworkers. We also examine the moderating role of leader-member exchange differentiation (LMXD) as an upper-level context influencing trust networks and employees’ innovative behavior. For this, we collected data from 102 employees from 19 teams in 10 Korean firms and tested our research model using hierarchical linear modeling (HLM). Our results reveal the positive effect of receiving competence-based trust on innovative behavior. However, contrary to our expectations, being trusted in compassion-based trust relationships has no significant effect on employees’ innovative behavior. Moreover, results of this study show different moderation effects of LMXD alongside the two types of trust. All in all, LMXD mitigates the positive effects of competence-based trust but strengthens the negative effects of compassion-based trust on employees’ innovative behavior. We go on to discuss the theoretical and practical implications of these findings.

How does knowledge hiding play a role in the relationship between leader–member exchange differentiation and employee creativity? A cross-level model

PurposeEmployees’ knowledge management, which influences creativity, is a pivotal resource in organizational innovation activities, as it helps activate the knowledge resource pool and improves knowledge flow. Using social information processing theory, this study aims to construct a cross-level model to examine how knowledge hiding plays a role in the relationship between leader–member exchange differentiation (LMXD) and employee creativity.Design/methodology/approachThis study surveyed 754 leader–employee matching samples from 127 teams in China innovation enterprises at two time points. Confirmatory factor analysis, convergent analysis, hierarchical regression analysis and bootstrapping method by SPSS and AMOS were used to test the hypotheses.FindingsThe empirical results demonstrate the cross-level model’s efficiency and reveal the following findings: Team-level LMXD is negatively related to employee creativity, whereas it is positively related to knowledge hiding; knowledge hiding is negatively associated with employee creativity; thus, knowledge hiding plays a mediating role in the relationships between them.Originality/valueBased on the knowledge-hiding perspective, this study analyzed an underlying mechanism between LMXD and employee creativity, thereby further enriching the literature on the influence of knowledge management. This proposed connection has not been established previously. Moreover, the findings respond to the reasons for the inconsistent conclusions of previous literature on the cross-level relationship between LMXD and employee creativity based on the social information processing theory. It thus clarifies the cross-level influence path, as well as provides a theoretical basis for further research on the relationship between the two.

LMX differentiation as a double‐edged sword: A social hierarchy perspective for understanding the beneficial and detrimental effects of LMX differentiation on team performance

AbstractDrawing on the social hierarchy within teams literature, we contend that leader‐member exchange differentiation (LMXD) may function as a coordination‐enabling mechanism and as a conflict‐enabling mechanism in transmitting its positive and negative effects on team performance. Specifically, we propose that the positive effect of LMXD on team performance is due to its impact on team role clarity, whereas the negative effects operate through team relationship conflict. To shed light on the boundary conditions that qualify the divergent mechanisms, we further examine the moderating roles of three team structural characteristics (also referred to as team type dimensions), including authority differentiation (AD), skill differentiation (SD), and temporal stability (TS). We conducted two studies to examine our model, which involve multi‐source and multi‐phase lagged data from multiple organizations from diverse industries. Across the two studies, we find consistent support for the coordination‐enabling mechanism and the roles of AD and SD in qualifying this mechanism. Regarding the conflict‐enabling mechanism, both studies support the moderating effect of SD. In contrast, we find limited support for the moderating effect of TS on both the coordination‐enabling and conflict‐enabling mechanisms, although we were only able to examine this in Study 2. We discuss the implications of these findings for future research on LMXD and team performance.

Transformation of Task Conflict Into Relational Conflict and Burnout: Enhancing Effect of Leader's Discriminatory Effect.

Organizational conflict was proposed by dividing it into task conflict and relationship conflict. However, conflict is dynamic and therefor, the conflict transformation is recognized as an important topic in organizational conflict. In particular, task conflict can be easily transformed into relationship conflict due to emotional expression and misattribution in the process of conflict. In addition, task conflict can negatively affect employees' attitudes if it is transformed into relationship conflict even though task conflict can function properly. This transformation of conflict can become more active under certain conditions, and leaders play an important role in this transformation because leaders have an important influence on conflict management. Therefore, this study examined the effect of the transition from task conflict to relationship conflict on burnout and the moderating effect of leaders in the relationship between task and relationship conflict. To this end, surveying 721 employees in 15 departments, and multilevel mediation and moderation analysis were performed. As a result of analysis, employees' burnout increased when task conflict transformed into relationship conflict. In addition, greater the LMX differentiation of leader, greater the effect of task conflict on relationship conflict. Finally, theoretical and practical implications were discussed for leadership and conflict management.

Virtual interaction and failure learning—The crucial role of team LMX composition

The COVID-19 pandemic has highlighted the importance of virtual work. Enabled by the pandemic, the present study addresses the consequences of virtual interaction among regular work teams. Building on and expanding prior research, we develop lines of reasoning to suggest that virtuality negatively affects team failure learning. Additionally, we argue that team LMX quality and team LMX differentiation can help mitigate this effect. We test our hypotheses based on survey data from 73 teams working for a service unit at an international bank. In line with our theorizing, the results reveal that virtuality hampers team failure learning. Moreover, we find that team LMX quality and team LMX differentiation can serve to alleviate the negative consequences of virtuality. We discuss the theoretical and practical implications of our study to support HR managers and propose some areas for future research.

Supervisors' social dominance orientation, nation-based exchange relationships, and team-level outcomes.

The prevalence of teams in contemporary organizations and the trend toward diversity in a workforce composed of members from multiple countries have drawn the attention of researchers on the consequences of diversity in workplaces. While there are potential benefits to diversity, relationship conflicts among team members may also result and affect team functioning. The aim of the present study was to explore how supervisors' social dominance orientation, a tendency to support the arbitrary dominance of specific social groups over others, may relate to relationship conflicts and reduced team commitment within teams. A two-wave study in a sample of 931 individuals from 108 workgroups was conducted to examine the relationship between supervisors' social dominance orientation and team functioning. Analyses indicated that supervisor social dominance orientation was associated with increased within-team differentiation of leader-member exchange (LMX) relationships based on team members' national origin. Such LMX differentiation (LMXD) was related to more within-team relationship conflict and in turn to reduced collective team commitment. The implications of these findings for research on supervisor social dominance orientation, within-team nationality diversity, and team functioning are discussed.

Does my leader care about my subgroup? A multilevel model of team faultlines, LMX quality, and employee absenteeism

ABSTRACT This article investigates the impact of demographic team faultlines on employee absenteeism by considering the level of leader-member exchange (LMX) that supervisors develop with members from different subgroups in a team. We integrate faultline research with the literature on LMX differentiation to build an integrative multilevel model to explain individual absenteeism behaviour. Drawing from social categorization and social comparison theory, we propose that members of subgroups that receive less favourable LMX treatment than their outgroup are particularly likely to increase their absenteeism behaviour due to faultline-induced social categorization. Our predictions receive empirical support in a study with 164 employees from a German electrical engineering company. We discuss implications for the faultline and LMX literature and executives who lead diverse teams.

A multilevel investigation of leader-member exchange differentiation's consequences: A moral disengagement perspective.

We examine the effects of leader–member exchange (LMX) differentiation on team members’ outcomes (customer-oriented constructive and destructive deviant behaviors) by using team moral disengagement as a psychological mechanism mediating this relationship and LMX differentiation bases (i.e., performance and personal liking) moderating the relationship. Analysis of multilevel data collected from 289 frontline employees organized into 76 finance-related customer service teams shows that LMX differentiation significantly reduced team moral disengagement only when the performance basis was high, and that the negative relationship between LMX differentiation and team moral disengagement was significant only when the personal liking basis was low. Furthermore, we found that the LMX bases moderated the indirect effect of LMX differentiation on team members’ outcomes through team moral disengagement. The findings advance team moral disengagement as a novel mechanism for cross-level relationship between LMX differentiation and team members’ outcomes at the individual level, and project differentiation bases as a condition under which LMX differentiation unpacks the reasons for team members’ favorable or unfavorable responses. They reveal LMX differentiation as a complex and multifaceted phenomenon, whose essence can only be understood if examined from multiple levels. We also contribute to the literature by revealing the cognitive pathway through which LMX differentiation may be associated with team members outcomes.

The Double-Edged Sword Effect of Paradoxical Leadership to Organizational Citizenship Behavior.

PurposeDrawing on social exchange theory and attribution theory, this study aims to explore the influencing mechanism of paradoxical leadership on organizational citizenship behavior.Participants and MethodsAccording to the research purpose, this study selects enterprises in the manufacturing, financial and high-tech industries in Shandong Province as the research objects, and collects data on the leaders and employees of the human resources departments and marketing departments in the enterprises. Data were collected from 77 leaders and 473 employees in China by a two-wave questionnaire survey. Hierarchical regression analysis and structural equation model approach were employed to test hypotheses.ResultsThis study found that perceived insider status and psychological entitlement play mediating roles about paradoxical leadership and organizational citizenship behavior; Collectivism moderates the relationship between paradoxical leadership and perceived insider status, and moderates the positive mediating role played by perceived insider status in the relationship of paradoxical leadership and organizational citizenship behavior; Leader-member exchange differentiation moderates the relationship about paradoxical leadership and psychological entitlement, and moderates negative mediating role played by psychological entitlement in the relationship of paradoxical leadership’s and organizational citizenship behavior.ConclusionThe findings of this study offer guidance for managers to better undermine the negative effects of paradoxical leadership, and improve organizational citizenship behavior.InnovationsFirst, this study extends the literature on paradoxical leadership by verifying the double-edged sword effect of paradoxical leadership to organizational citizenship behavior. Second, this study enriches one’s understanding of the “black box” underlying the link between paradoxical leadership and its consequences by demonstrating the mediating roles of perceived insider status and psychological entitlement. Third, by verifying the moderating roles of collectivism and leader-member exchange differentiation, this study provides insights into the boundary conditions of the impact of paradoxical leadership.