Unpacking Employee Responses to Organizational Exchange Mechanisms: The Role of Social and Economic Exchange Perceptions†

Organizations form different degrees of social and economic exchange relationships with their employees. In this study, we unpack employee responses to organizational-level mechanisms of executive leadership style, organizational culture, and employment approaches by examining the mediating role of employees' perceptions of social and economic exchange relationships. The results of hierarchical linear modeling analyses show that social exchanges partially mediate the influence of the CEO's transformational leadership, an integrative organizational culture, and the mutual investment employment approach on affective commitment and task performance but not on organizational citizenship behavior. Economic exchanges partially mediate the influence of a hierarchical culture on all three employee outcomes and mediate the influence of the quasi-spot contract employment approach on commitment and organizational citizenship behavior but not on task performance. These results suggest the need for further understanding of the role of social and economic exchanges in organizational research.

[1]  B. Bass,et al.  Multifactor Leadership Questionnaire , 2011 .

[2]  Marshall W. Meyer,et al.  Which Way through the Open Door? Reflections on the Internationalization of Chinese Firms , 2008, Management and Organization Review.

[3]  Ike-Elechi Ogba,et al.  Commitment in the workplace: The impact of income and age on employee commitment in Nigerian banking sector , 2008 .

[4]  A. Tsui,et al.  How do I trust thee? The employee‐organization relationship, supervisory support, and middle manager trust in the organization , 2008 .

[5]  Bradley L. Kirkman,et al.  A multilevel study of leadership, empowerment, and performance in teams. , 2007, The Journal of applied psychology.

[6]  Lois E. Tetrick,et al.  The Norm of Reciprocity: Scale Development and Validation in the Chinese Context , 2006, Management and Organization Review.

[7]  Hui Wang,et al.  Organizational Culture in China: An Analysis of Culture Dimensions and Culture Types , 2006, Management and Organization Review.

[8]  Lois E. Tetrick,et al.  Social and Economic Exchange: Construct Development and Validation. , 2006 .

[9]  A. Tsui,et al.  Unpacking the relationship between CEO leadership behavior and organizational culture , 2006 .

[10]  Anne S. Tsui,et al.  Contextualization in Chinese Management Research , 2006, Management and Organization Review.

[11]  C. Lo,et al.  Stability and Change in Managerial Work Values: A Longitudinal Study of China, Hong Kong, and the U.S. , 2006, Management and Organization Review.

[12]  R. Cropanzano,et al.  Social Exchange Theory: An Interdisciplinary Review , 2005 .

[13]  R. Hackett,et al.  Leader-Member Exchange as a Mediator of the Relationship Between Transformational Leadership and Followers' Performance and Organizational Citizenship Behavior , 2005 .

[14]  Ronald F. Piccolo,et al.  Transformational and transactional leadership: a meta-analytic test of their relative validity. , 2004, The Journal of applied psychology.

[15]  Chi-Sum Wong,et al.  The construct and criterion validity of emotional intelligence and its potential utility for management studies. , 2004, The Journal of applied psychology.

[16]  Anne S. Tsui,et al.  Special Issue on Corporate Transformation in the People's Republic of China: Organization and Management in the Midst of Societal Transformation: The People's Republic of China , 2004, Organ. Sci..

[17]  Neil Conway,et al.  The employment relationship through the lens of social exchange , 2004 .

[18]  Anne S. Tsui,et al.  Utilizing Printed Media to Understand Desired Leadership Attributes in the People's Republic of China , 2003 .

[19]  Mel Schnake,et al.  Levels of measurement and analysis issues in organizational citizenship behaviour research , 2003 .

[20]  A. Tsui,et al.  Employment relationships and firm performance: evidence from an emerging economy , 2003 .

[21]  A. M. Francesco,et al.  The Relationship between the Three Components of Commitment and Employee Performance in China. , 2003 .

[22]  Alexander D. Stajkovic,et al.  Behavioral management and task performance in organizations: Conceptual background, meta-analysis, and test of alternative models. , 2003 .

[23]  R. Gonzalez.  Applied Multivariate Statistics for the Social Sciences , 2003 .

[24]  Laurent Lapierre,et al.  LMX and Organizational Citizenship Behavior: Examining the Links Within and Across Western and Chinese Samples , 2003 .

[25]  A. Tsui,et al.  Employment Relationships from the Employer's Perspective: Current Research and Future Directions , 2008 .

[26]  Deborah E. Rupp,et al.  The mediating effects of social exchange relationships in predicting workplace outcomes from multifoci organizational justice , 2002 .

[27]  B. Avolio,et al.  Impact of Transformational Leadership on Follower Development and Performance: A Field Experiment , 2002 .

[28]  Neil Conway,et al.  Communicating the psychological contract: an employer perspective , 2002 .

[29]  T. Little,et al.  To Parcel or Not to Parcel: Exploring the Question, Weighing the Merits , 2002 .

[30]  Michael S. Cole,et al.  The Workplace Social Exchange Network , 2002 .

[31]  K. Xin,et al.  Organizational Culture in the PRC: An Analysis of Culture Dimensions and Culture Types , 2002 .

[32]  G. Holmbeck.  Post-hoc probing of significant moderational and mediational effects in studies of pediatric populations. , 2002, Journal of pediatric psychology.

[33]  Deborah E. Rupp,et al.  Three roads to organizational justice , 2001 .

[34]  D. Mackinnon,et al.  Multilevel Modeling of Individual and Group Level Mediated Effects , 2001, Multivariate behavioral research.

[35]  R. J. House,et al.  Does Leadership Matter? CEO Leadership Attributes and Profitability under Conditions of Perceived Environmental Uncertainty. , 2001 .

[36]  A. Tsui,et al.  Blending traditional culture and modern leadership: The role of the printed news media in the People's Republic of China , 2001 .

[37]  A. Tsui,et al.  Corporate culture in Chinese state-owned enterprises: An inductive analysis of dimensions and influences , 2001 .

[38]  John J. Mauriel,et al.  A Framework for Linking Culture and Improvement Initiatives in Organizations , 2000 .

[39]  Jeffrey Pfeffer,et al.  Hidden Value: How Great Companies Achieve Extraordinary Results with Ordinary People , 2000 .

[40]  M. Konovsky.  Understanding Procedural Justice and Its Impact on Business Organizations , 2000 .

[41]  Daniel G. Bachrach,et al.  Organizational Citizenship Behaviors: A Critical Review of the Theoretical and Empirical Literature and Suggestions for Future Research , 2000 .

[42]  S. Kozlowski,et al.  Multilevel Theory, Research, and Methods in Organizations: Foundations, Extensions, and New Directions , 2000 .

[43]  David A. Hofmann,et al.  Multilevel Analytical Techniques: Commonalties, Differences, and Continuing Questions. , 2000 .

[44]  P. Bliese.  Within-group agreement, non-independence, and reliability: Implications for data aggregation and analysis. , 2000 .

[45]  S. Kozlowski,et al.  Multilevel Theory, Research, a n d M e t h o d s i n Organizations Foundations, Extensions, and New Directions , 2022 .

[46]  Chester A. Schriesheim,et al.  Fairness Perceptions and Trust as Mediators for Transformational and Transactional Leadership: A Two-Sample Study , 1999 .

[47]  Kenneth S. Law,et al.  Organizational citizenship behavior: Comparing perspectives of supervisors and subordinates across four international samples , 1999 .

[48]  C. Butler,et al.  Transformational Leadership: Industrial, Military, and Educational Impact , 1999 .

[49]  F. Yammarino,et al.  Ceo Charismatic Leadership: Levels-of-Management and Levels-of-Analysis Effects , 1999 .

[50]  Eileen P. Kelly,et al.  Book Reviews: Transformational Leadership: Industry, Military and Educational Impact Bernard M. Bass Lawrence Erlbaum Associates, 1998 208 pp., Paperback, $29.95 , 1999 .

[51]  Kenneth S. Law,et al.  Toward A Taxonomy of Multidimensional Constructs , 1998 .

[52]  R. N. Kanungo,et al.  Charismatic leadership in organizations , 1998 .

[53]  Jon M. Werner,et al.  Managers as Initiators of Trust: An Exchange Relationship Framework for Understanding Managerial Trustworthy Behavior , 1998 .

[54]  D. Chan.  Functional Relations among Constructs in the Same Content Domain at Different Levels of Analysis: A Typology of Composition Models , 1998 .

[55]  L. Porter,et al.  Alternative Approaches to the Employee-Organization Relationship: Does Investment in Employees Pay Off? , 1997 .

[56]  B. Bass.  Transformational Leadership: Industrial, Military, and Educational Impact , 1997 .

[57]  P. Christopher Earley,et al.  Impetus for action: A cultural analysis of justice and , 1997 .

[58]  Raymond T. Sparrowe,et al.  Leader-member exchange theory: The past and potential for the future. , 1997 .

[59]  Paul Sparrow,et al.  Generic climate maps: A strategic application of climate survey data? , 1996 .

[60]  Kevin B. Lowe,et al.  Effectiveness correlates of transformational and transactional leadership: A meta-analytic review of the mlq literature , 1996 .

[61]  John E. Delery,et al.  Modes of theorizing in strategic human resource management: Tests of universalistic, contingency, and configurational performance predictions , 1996 .

[62]  B. Bass.  A New Paradigm for Leadership: An Inquiry into Transformational Leadership. , 1996 .

[63]  B. Mark.  Organizational culture. , 1996, Annual review of nursing research.

[64]  Jennifer A. Chatman,et al.  Culture as social control: Corporations, cults, and commitment. , 1996 .

[65]  Mark A. Huselid.  The Impact of Human Resource Management Practices on Turnover, Productivity, and Corporate Financial Performance , 1995 .

[66]  Aneil K. Mishra,et al.  Toward a theory of organizational culture and effectiveness. , 1995 .

[67]  Lyman W. Porter,et al.  Choice of employee-organization relationship: Influence of external and internal organizational factors , 1995 .

[68]  Rick D. Hackett,et al.  Further assessments of Bass's (1985) conceptualization of transactional and transformational leadership. , 1995 .

[69]  S. Floyd,et al.  Dinosaurs or dynamos? Recognizing middle management's strategic role , 1994 .

[70]  Jeffrey B. Arthur,et al.  Effects of human resource systems on manufacturing performance and turnover , 1994 .

[71]  Douglas R. May,et al.  Procedural justice explanations and employee reactions to economic hardship: A field experiment , 1994 .

[72]  Jennifer A. Chatman,et al.  Assessing the Relationship between Industry Characteristics and Organizational Culture: How Different can You Be? , 1994 .

[73]  Francis J. Yammarino,et al.  Indirect leadership: Transformational leadership at a distance. , 1994 .

[74]  D. Mumby.  Cultures in Organizations: Three Perspectives , 1994 .

[75]  David A. Hofmann,et al.  Job Perception–Job Satisfaction Relations: An Empirical Comparison of Three Competing Theories , 1993 .

[76]  D. Mackinnon,et al.  Estimating Mediated Effects in Prevention Studies , 1993 .

[77]  Denise M. Rousseau,et al.  The contracts of individuals and organizations , 1993 .

[78]  Robert J. House,et al.  Toward the integration of transformational, charismatic, and visionary theories. , 1993 .

[79]  W. Borman,et al.  Expanding the Criterion Domain to Include Elements of Contextual Performance , 1993 .

[80]  R. I. Sutton,et al.  Organizational behavior: linking individuals and groups to organizational contexts. , 1993, Annual review of psychology.

[81]  J. E. Sheridan.  Organizational Culture and Employee Retention , 1992 .

[82]  J. Kotter,et al.  Corporate Culture and Performance , 1992 .

[83]  Anthony S. Bryk,et al.  Hierarchical Linear Models: Applications and Data Analysis Methods , 1992 .

[84]  Joanne D. Martin.  Cultures in Organizations: Three Perspectives , 1992 .

[85]  Jennifer A. Chatman,et al.  PEOPLE AND ORGANIZATIONAL CULTURE: A PROFILE COMPARISON APPROACH TO ASSESSING PERSON-ORGANIZATION FIT , 1991 .

[86]  Jennifer A. Chatman.  Matching People and Organizations: Selection and Socialization in Public Accounting Firms , 1989 .

[87]  E. Schein.  Organizational Culture and Leadership , 1991 .

[88]  Philip M. Podsakoff,et al.  Accounting for Organizational Citizenship Behavior: Leader Fairness and Task Scope versus Satisfaction , 1990 .

[89]  Scott B. MacKenzie,et al.  Transformational leader behaviors and their effects on followers' trust in leader, satisfaction, and organizational citizenship behaviors , 1990 .

[90]  Henry Mintzberg,et al.  VISIONARY LEADERSHIP AND STRATEGIC MANAGEMENT , 1989 .

[91]  John D. Aram,et al.  The Paradox of Interdependent Relations in the Field of Social Issues in Management , 1989 .

[92]  Fred A. Mael,et al.  Social identity theory and the organization , 1989 .

[93]  V. Meek,et al.  Organizational Culture: Origins and Weaknesses , 1988 .

[94]  Edward E. Lawler,et al.  Choosing an Involvement Strategy , 1988 .

[95]  Peter J. Rousseeuw,et al.  Robust Regression and Outlier Detection , 2005, Wiley Series in Probability and Statistics.

[96]  John W. Slocum,et al.  Managing corporate culture through reward systems , 1987 .

[97]  D. A. Kenny,et al.  The moderator-mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations. , 1986, Journal of personality and social psychology.

[98]  Paul Shrivastava,et al.  Organizational Frames of Reference , 1984 .

[99]  L. James,et al.  Estimating within-group interrater reliability with and without response bias. , 1984 .

[100]  L. Smircich.  Concepts of Culture and Organizational Analysis. , 1983 .

[101]  L. James.  Aggregation Bias in Estimates of Perceptual Agreement. , 1982 .

[102]  M. Sobel.  Asymptotic Confidence Intervals for Indirect Effects in Structural Equation Models , 1982 .

[103]  G. Yukl,et al.  Leadership in Organizations , 1981 .

[104]  R. H. Willis,et al.  Social Exchange: Advances In Theory And Research , 1981 .

[105]  S. Davis,et al.  Matching corporate culture and business strategy , 1981 .

[106]  Sheila Rosenblum,et al.  Stability and Change , 1981, Environment, Development, and Public Policy.

[107]  G. Hofstede,et al.  Culture′s Consequences: International Differences in Work-Related Values , 1980 .

[108]  William G. Ouchi,et al.  Markets, Bureaucracies, and Clans. , 1980 .

[109]  J. Fleiss,et al.  Intraclass correlations: uses in assessing rater reliability. , 1979, Psychological bulletin.

[110]  Bobby J. Calder,et al.  An Attribution Theory of Leadership , 1977 .

[111]  J. Bartko,et al.  On Various Intraclass Correlation Reliability Coefficients , 1976 .

[112]  F. Glen.  The social psychology of organizations , 1976 .

[113]  R. Brislin.  Back-Translation for Cross-Cultural Research , 1970 .

[114]  P. Blau.  Exchange and Power in Social Life , 1964 .

[115]  Jaco Lok,et al.  Prologue: Stability and change* , 2011, Journal of Management & Organization.

[116]  A. Gouldner.  THE NORM OF RECIPROCITY: A PRELIMINARY STATEMENT * , 1960 .