A Resource-Based Perspective on Leader-Member Exchange: An Updated Meta-Analysis

Abstract

Leader-member exchange (LMX) pertains to the exchange relationship between supervisors and subordinates. While prior results validated LMX’s critical role in the workplace, less is known about “what has been input and exchanged” to cultivate this dyadic relationship. In this study, a resource framework based on conservation of resources theory (COR) was developed as an alternative theoretical perspective in investigating relationships between LMX and its correlates. Three groups of resources which has incorporated newly studied and existing correlates of LMX and existing constructs that could not be easily fitted into other theoretical frameworks were argued as antecedents to LMX. COR theory highlights the important role of LMX in transforming instrumental resources into favorable outcomes. The model also incorporates two types of LMX consequences: employee competitiveness and organizational enhancements. The findings contribute to the LMX literature by identifying the types of resources that are valuable in cultivating a high-quality LMX relationship, which in turn relates to the competitiveness of employees and their contribution that can enhance organizational effectiveness. Overall, the study findings indicate that LMX is significantly related to various antecedents and outcomes. Implications for theory development and directions for future research are also discussed.