Leader–Member Exchange Theory

Leader–member exchange (LMX) theory is a relationship-based, dyadic theory of leadership. According to this theory, leadership resides in the quality of the exchange relationship developed between leaders and their followers. High quality exchanges are characterized by trust, liking, and mutual respect, and the nature of the relationship quality has implications for job-related well-being and effectiveness of employees. This article summarizes what LMX is, how it is measured, and the best practices in the study of LMX. Studies conducted on its antecedents, and past research related to its consequences in organizational settings are reviewed. In addition, we review issues related to multiple relationships such as differentiation and relative LMX. Finally, we conclude the article by identifying and summarizing key themes and questions for future research.

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