A study of the influence of economic and social leader-member exchange relationships on job performance, organizational citizenship behaviors and turnover intention : and the mediation effects of self-efficacy and social loafing

Alkathiri, Halah Ahmed

June 2016

Thesis or dissertation

© 2016 Halah Ahmed Alkathiri. All rights reserved. No part of this publication may be reproduced without the written permission of the copyright holder.

This research studied the influence of leader-member exchange (LMX) relationships on employee job performance, organizational citizenship behaviors, and turnover intention. Mediation effects of self-efficacy and social loafing are also examined. Leader-member relationships were examined from the two different perspectives of social LMX and economic LMX proposed by Kuvaas, Buch, Dysvik and Haeram (2012) and results compared with Scandura and Graen’s (1984) traditional LMX-7 construct. Temporal effects of LMX relationship building were also investigated by considering the influence of dyad tenure on both the quality of economic and social LMX relationships and other study variables.

The framework for the research adopted a hypothetico-deductive methodology. The sampling frame comprised 227 leader-subordinate dyads drawn from Omani Higher Education Institutions. Subjects completed the following instruments: Kuvaas et al’s,. (2012) economic and social leader-member exchange relationship scale; Scandura and Graen’s (1984) LMX-7 scale; Williams and Anderson’s (1991) employee job performance; Van Dyne and LePine’s (1998) organizational citizenship behavior; Cammann, Fichman, Jenkiins, and Klesh’s (1979) employee turnover intention; Riggs, Warka, Babasa, Betancourt, and Hooker’s (1994) employee self-efficacy scale; and George’s (1992) social loafing scale. Data were analyzed using structural equation modeling and analysis of variance.

Findings support the use of the two distinct economic and social LMX scales proposed by Kuvaas et al., (2012). Results revealed that ELMX was negatively associated with work performance and positively associated with employee turnover intention. Results also revealed that SLMX was positively associated with work performance and negatively associated with employee turnover intention. Social loafing and self-efficacy were found to mediate the relationships between SLMX/ELMX exchanges and employee job performance and turnover intention. These results provide further support for the two-dimensional SLMX/ELMX model. The study has also revealed that the quality of SLMX and ELMX relationships differed as dyad tenure increased. Those whose tenure ranged from 13 to 24 months produced the highest scores of ELMX and social loafing, and the lowest scores on job performance. Dyads whose tenure was in the highest category had the highest job performance and the lowest ELMX relationships.

This study provides further empirical evidence that LMX relationships have consequential effects on employee outcomes in the workplace, and new evidence of the influence of dyad tenure on the development of LMX relationship over time. Findings also provide a cross-cultural comparison of LMX research by conducting the field study in a non-western culture. It also brings new evidence to the LMX differentiation literature by explaining how a leader can respond to different employees’ needs and requirements. Human resource implications for practice are highlighted. Considering the economic aspect of the relationship would likely assist managers to restructure rewarding systems/compensation and benefits packages that would further enhance subordinates positive outcomes. Managerial training programs seem a worthwhile for supervisors to enable them respond to both aspects of the relationship. Recommendations for future research are also discussed.

Business School, The University of Hull
Armstrong, Steven J.; Mukhuty, Sumona
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