Leader-Member Exchange and Employee Creativity: Test of a Multilevel Moderated Mediation Model

Abstract

Drawing on self-determination and social exchange theories, the study examined the mechanisms through which leader–member exchange (LMX) influences employee creativity. Data were obtained from 367 leader–follower dyads at three manufacturing companies in the People's Republic of China. The results of our study revealed that (a) motivation-oriented psychological empowerment and social exchange-oriented felt obligation fully mediate the relationship between LMX and employee creativity, and (b) work-unit structure moderates the indirect effect of LMX on creativity through psychological empowerment, such that the mediated effect of LMX is stronger in organic than in mechanistic work-unit structure.