When leader–member exchange differentiation improves work group functioning: The combined roles of differentiation bases and reward interdependence

• Han, J. H. 
• Liao, H. 
• Han, J. 
• Li, A. N. 

Indexed by

SSCI ABDC-A*

Abstract

Drawing　on　social　hierarchy　theory,　we　develop　a　contingency　model　of　leader–member　exchange　(LMX)　differentiation　in　which　LMX　differentiation　is　positively　and　negatively　related　to　group　cooperation　and　group　social　undermining,　respectively,　when　it　is　based　on　the　group　members’　performance,　but　the　relations　are　reversed　(i.e.,　negative　and　positive,　respectively)　when　it　stems　from　a　leader＇s　personal　liking　of　the　members.　In　addition,　we　propose　that　the　moderating　effects　of　the　performance　and　personal　liking　bases　of　LMX　differentiation　are　magnified　by　the　levels　of　reward　interdependence.　Specifically,　under　a　high　(vs.　low)　level　of　reward　interdependence,　LMX　differentiation　based　on　performance　more　strongly　relates　to　high　group　cooperation　and　low　group　social　undermining,　whereas　LMX　differentiation　with　a　personal　liking　basis　is　more　likely　to　decrease　group　cooperation　and　increase　group　social　undermining.　Group　cooperation　and　social　undermining　are　then　hypothesized　to　convey　the　three‐way　interactive　effects　of　LMX　differentiation,　its　two　bases,　and　reward　interdependence　on　subsequent　group　performance.　Analyses　of　data　from　328　sales　groups　of　a　large　retailer　support　the　core　part　of　our　contingency　model　of　LMX　differentiation.

Keyword

• group cooperation
• group performance
• LMX differentiation
• LMX differentiation bases
• reward interdependence

Author Community

[Han, J. H.] School of Management and Labor Relations, Rutgers University, Piscataway, New Jersey

[Liao, H.] Department of Management and Organization, Robert H. Smith School of Business, University of Maryland, College Park, Maryland

[Han, J.] Department of Management, China Europe International Business School, Shanghai, P.R. China

[Li, A. N.] Department of Management and Leadership, Neeley School of Business, Texas Christian University, Fort Worth, Texas

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