Leader-member exchange and job performance

Abstract

Purpose – The purpose of this paper is to examine the relationship between leader-member exchange (LMX) and job performance and the utility of delegation and participation as mediators of the aforementioned relationship. Methodology – A survey approach was used in this research. Regression analyses, including mediation analyses, on data from 268 employees in a large public sector organisation were conducted. Findings – The findings revealed that both delegation and participation were significant mediating variables of the relationship between LMX and job performance. Research limitation – The limitations of the study include the use of self-report and cross-sectional data. Future research could include multi-source data, and a longitudinal research design. Practical implication – The implications of the findings for theory and management are discussed, including the use of delegation and participation as effective instruments for developing and maintaining strong manager-employee relationships to improve social capital and enhance job performance. Originality value – This paper enhances understanding of LMX, and sheds some light on how LMX and participative decision making can influence employee job performance.