Leader-member exchange (LMX) differentiation: Defining, measuring, and empirically testing the perceived degree and bases of LMX variation

Abstract

According to leader-member exchange (LMX) theory, team leaders develop different levels of relationship quality with members of their teams (termed LMX differentiation). Despite the seemingly clear and simple exposition of the concept, authors have defined and measured LMX differentiation in vastly different and at times even conflicting ways. Consequently, reviewers have found that findings on the effects of LMX differentiation have been mixed at best. Hence, this thesis set out to clarify the variety of existing definitions and measures of the multi-faceted LMX differentiation phenomenon, to develop new measures of individual perceptions of both the degree and bases of (i.e., reasons for) the inevitable within-team variation in LMX relationships, and to empirically assess the relationships between the latter two constructs and employee-related consequences. First, a systematic literature review of 127 research articles was conducted, providing: (1) standardised definitions for the identified and categorised facets of LMX differentiation; (2) an integrative conceptual framework that proposes how the diverse conceptualisations might be related to one another and to further outcome variables; (3) an updated taxonomy of existing measures that have been used to assess different facets of LMX differentiation; (4) an evaluation of measures that have been used to specifically capture the 'actual' team- level or 'perceived' individual-level degree of LMX variation; and (5) a summary of the variables that have been studied in relation to actual and perceived LMX variation. In sum, the review identified a lack of accurate and appropriate (i.e., valid) questionnaire measures that can directly capture individual perceptions of within-team LMX variation and only a handful of empirical studies that conceptualised and/or operationalised LMX variation as an individual-level perceptual construct or focused on the bases of LMX differentiation. Consequently, three new questionnaires and respective short versions were developed, including the: (1) 5-item LMX-D measure that captures respondents' perceptions of the extent to which levels of LMX relationship quality are dispersed within their teams; (2) more nuanced 10-dimensional 40-item LMX-V measure that assesses perceptions of the degree to which specific work- or interpersonal resources are exchanged differently between team leaders and members of their teams; and (3) 9-dimensional 42-item LMX-D-B measure that captures perceptions of the extent to which within-team differences in levels of LMX relationship quality are based on certain work- or interpersonal reasons. Questionnaire items and rating scales were developed following reputable guidelines for psychometric measure development and using qualitative data from 14 interviews. The new measures were refined based on suggestions from two expert reviews and 12 cognitive interviews and were validated in a cross-sectional (n = 492) and a time separated (n = 486) survey design study. Finally, using data from the second empirical study, a new theoretical model and hypotheses regarding the relationships between the perceived degree of LMX variation and bases of LMX differentiation with individual-level consequences were assessed. Accounting for individual levels of LMX relationship quality, results showed that perceptions of LMX variation tended to have adverse effects on employees' job insecurity and counterproductive work behaviour. Likewise, perceptions of LMX variation tended to have a significant negative indirect effect on employees' general well-being via their affective job insecurity. However, contrary to predictions, perceived LMX variation did not have significant direct or indirect relationships with employees' felt obligation (towards their leaders), well-being, task- or contextual performance above the effects of employees' levels of LMX relationship quality on these consequences. Similarly, none of the proposed bases of LMX differen

Date of Award	1 Aug 2024
Original language	English
Awarding Institution	The University of Manchester
Supervisor	David Hughes (Supervisor) & Robin Martin (Supervisor)