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

Abstract

Leader-member exchange (LMX) pertains to the “exchange” relationships between supervisors and subordinates. As LMX is one of the most extensively studied topics in the organizational behavior field, ample body of empirical studies investigating its relationships with various correlates exists. While prior results confirm LMX’s critical role at workplace, less is known about “what has been input and exchanged” to cultivate this dyadic relationship. In this study, a resource-based framework was developed as an alternative theoretical perspective in investigating relationships between LMX and its correlates. The conservation of resources theory was adopted to develop the resource category, which has incorporated newly studied constructs of LMX as well as existing constructs that could not easily fit in other theoretical frameworks. To test this resource framework, we meta- analyzed the relationships LMX has with three groups of antecedents and two types of consequences. The resource perspectives were adopted to highlight the important role of LMX in transforming instrumental resources into favorable outcomes. The findings yielded by this investigation 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. Hypotheses relating to relationships between LMX and its correlates were proposed and tested and methodological moderators were investigated. 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.