CHAPTER 351 Relational Leadership through the Lens of International LMX Research Ekin K. Pellegrini Abstract Over the past decade, a substantial body of research on leader–member exchange (LMX) has emerged from the international context. International LMX is a developing research area with some intriguing findings; however, this emerging literature is still in its infancy and much work remains to be done for a strong theoretical foundation with sound practical implications. This article provides a comprehensive assessment of international LMX research. It then highlights theoretical and methodological gaps and suggests promising directions for future international LMX research. Key Words: leader–member exchange, LMX, leadership, international, cross-cultural Introduction Multinational business organizations are increas- ingly experiencing dynamic cross-cultural work arrangements due to technological advances such as teleconference, live chat, online hangouts, video conferencing, and an increasing reliance on email in lieu of face-to-face communication. In multina- tional companies, business is commonly conducted in multicultural work groups specifically via virtual work and expatriation. Accordingly, the twenty-first century has been referred to as “the century of inter- national management research” (Tsui, Nifadkar, & Ou, 2007, p. 427). Recent changes in organizational structures toward an increasingly multicultural work envi- ronment are accompanied by an accelerated inter- est in management research across cultures. is interest is evidenced by major reviews within the past few years (e.g., Gelfand, Erez, & Aycan, 2007; Kirkman, Lowe, & Gibson, 2006; Rockstuhl, Dulebohn, Ang, & Shore, 2012; Tsui et al., 2007). ere is growing excitement among management scholars on cross-cultural research and it is clear from the review articles that sufficient research has accumulated to merit comprehensive reviews. However, previous reviews of international research focused broadly on international management and organizational behavior and did not aim to pro- vide an in-depth study of specific areas, such as leader–member exchange (LMX), where a substan- tial amount of international research has accumu- lated specifically over the past decade. To date, the meta-analysis of Rockstuhl et al. (2012) is the only review of international LMX research; however, they focused specifically on six outcome variables [i.e., task performance, organizational citizenship behavior (OCB), justice perceptions, job satisfac- tion, organizational commitment, and turnover intentions] and two antecedents (transformational leadership and leader trust). Despite flourishing research in international LMX, the field is in need of a review of diverse findings. us, the purpose of this article is to pro- vide a thorough examination of recent advances in international LMX research and identify theoreti- cal and methodological gaps in the current state of the literature. LMX theory will advance only when diverse perspectives from the international context are integrated to provide a more complete theoreti- cal framework. 19 OUP UNCORRECTED PROOF – FIRSTPROOFS, Fri May 15 2015, NEWGEN oxfordhb-9780199326174-part-5.indd 351 5/15/2015 2:52:20 PM
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C H A P T E R
351
Relational Leadership through the Lens of International LMX Research
Ekin K. Pellegrini
Abstract
Over the past decade, a substantial body of research on leader–member exchange (LMX) has emerged from the international context. International LMX is a developing research area with some intriguing findings; however, this emerging literature is still in its infancy and much work remains to be done for a strong theoretical foundation with sound practical implications. This article provides a comprehensive assessment of international LMX research. It then highlights theoretical and methodological gaps and suggests promising directions for future international LMX research.
IntroductionMultinational business organizations are increas-
ingly experiencing dynamic cross-cultural work arrangements due to technological advances such as teleconference, live chat, online hangouts, video conferencing, and an increasing reliance on email in lieu of face-to-face communication. In multina-tional companies, business is commonly conducted in multicultural work groups specifically via virtual work and expatriation. Accordingly, the twenty-first century has been referred to as “the century of inter-national management research” (Tsui, Nifadkar, & Ou, 2007, p. 427).
Recent changes in organizational structures toward an increasingly multicultural work envi-ronment are accompanied by an accelerated inter-est in management research across cultures. This interest is evidenced by major reviews within the past few years (e.g., Gelfand, Erez, & Aycan, 2007; Kirkman, Lowe, & Gibson, 2006; Rockstuhl, Dulebohn, Ang, & Shore, 2012; Tsui et al., 2007). There is growing excitement among management scholars on cross-cultural research and it is clear from the review articles that sufficient research has accumulated to merit comprehensive reviews.
However, previous reviews of international research focused broadly on international management and organizational behavior and did not aim to pro-vide an in-depth study of specific areas, such as leader–member exchange (LMX), where a substan-tial amount of international research has accumu-lated specifically over the past decade. To date, the meta-analysis of Rockstuhl et al. (2012) is the only review of international LMX research; however, they focused specifically on six outcome variables [i.e., task performance, organizational citizenship behavior (OCB), justice perceptions, job satisfac-tion, organizational commitment, and turnover intentions] and two antecedents (transformational leadership and leader trust).
Despite flourishing research in international LMX, the field is in need of a review of diverse findings. Thus, the purpose of this article is to pro-vide a thorough examination of recent advances in international LMX research and identify theoreti-cal and methodological gaps in the current state of the literature. LMX theory will advance only when diverse perspectives from the international context are integrated to provide a more complete theoreti-cal framework.
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Theoretical BackgroundAccording to LMX theory, leaders develop
unique relationships with each follower (Scandura & Graen, 1984; Graen & Uhl-Bien, 1995). The qual-ity of these LMX relationships falls on a continuum ranging from low-quality relations characterized by economic exchange to high-quality relations char-acterized by social exchange. LMX is grounded in social exchange theory (Blau, 1964), which posits that unlike economic exchanges, social exchange relations are more flexible and complex and cannot be reduced to a single calculative exchange scale. Social exchange relations involve unspecified obli-gations in return for received favors and they rarely involve explicit bargaining. In a high-quality rela-tionship, followers receive support, encouragement, visibility, and developmental assignments from their leaders and they reciprocate the favor in more generalized terms (e.g., work harder) as opposed to immediate reciprocity in economic exchange (Liden, Sparrowe, & Wayne, 1997). As LMX matures from low-quality relations that are charac-terized by transactional exchanges specified by the employment contract to high-quality exchanges beyond work requirements, members stop keep-ing count of favors since the relationship evolves into one characterized by mutual trust, obligation, respect, and loyalty. The quality of a member’s exchange relation with the leader has been shown to be positively related to performance, OCB, orga-nizational commitment, job satisfaction, and justice perceptions and negatively related to turnover, per-ceptions of politics, role ambiguity, and role con-flict (Gerstner & Day, 1997; Ilies, Nahrgang, & Morgeson, 2007; Dulebohn, Bommer, Liden, Brouer, & Ferris, 2012).
DefinitionThis review of over three decades of international
research suggests a general consensus in the field with respect to the definition of LMX. According to Graen and Scandura (1987), effective leader-ship occurs when leaders and followers maintain a high-quality LMX relationship characterized by mutual trust, respect, and obligation. Graen and Uhl-Bien (1995) also endorse this definition. Dienesch and Liden (1986) conceptualized LMX as a multidimensional construct composed of affect, contribution, and loyalty. Later, Liden, and Maslyn (1998) conducted interviews to serve as guidelines for item generation and based on these interviews, they proposed a five-dimensional model of LMX composed of three dimensions originally proposed
by Dienesch and Liden (1986) and two new dimen-sions: trust and professional respect. They defined trust as “the perception of the degree of genuine concern for the best interest of the other member of the dyad as reflected in supportive behavior and honesty” (p. 49). However, trust (a central tenet of social exchange theory) was later dropped and loyalty dimension was revised to include notions of trust. Empirical analyses demonstrated support for a four-dimensional model that included affect, contribution, loyalty, and professional respect as currencies of exchange. Liden and Maslyn (1998) suggest LMX relations may be based primarily on one, two, three, or all four dimensions. For exam-ple, affect may develop quickly, perhaps during the employment interview; however, loyalty may take considerable time to grow.
A multidimensional conceptualization of LMX is especially significant in cross-cultural research as different LMX domains may lead to different out-comes (Liden & Maslyn, 1998). Furthermore, the relative importance of exchange currencies may vary considerably across cultures. However, current defi-nitions of LMX used in international research are limited by a strictly etic (cultural-universals) per-spective due to the conceptualization of LMX mean-ing based on interviews solely with U.S. samples.
Based on inconsistent LMX findings from the international context, Anand, Hu, Liden, and Vidyarthi (2011) suggested that LMX dynamics may operate differently in non-Western contexts. Inconsistent findings of these studies include, but not limited to, a nonsignificant relation between LMX and OCB in China (Loi & Ngo, 2009), a nonsignificant association between LMX and turnover intentions in India (Mehta, 2009), and a significantly weaker association between transfor-mational leadership and LMX in Saudi Arabia and Jordan as compared to Australia (Pillai, Scandura, & Williams, 1999). Given that these associations are well-established in the Western context, controver-sial findings from international research prompted Rockstuhl et al. (2012) to conduct a meta-analysis of international LMX research.
In their meta-analysis from the international context, Rockstuhl et al. (2012) observed a signifi-cantly weaker association between LMX and out-come variables as compared to established findings from the U.S. context. For example, the relation-ships among LMX and OCB, justice perceptions, job satisfaction, turnover intentions, and leader trust were all significantly stronger in Western cul-ture (i.e., horizontal/individualistic; HI) contexts
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(e.g., United States, England, Canada, Australia) compared to vertical/collectivistic (VC) cultures (e.g., China, India, Turkey, Colombia, Malaysia, Singapore). They suggest that the underlying reason for weaker associations between LMX and outcome variables in the international context is that employ-ees in VC cultures are influenced by role-based obli-gations; due to their stronger respect for authority, attitudes and behaviors of members in VC cultures are therefore less likely to be influenced solely by leader treatment. They further suggest that the weaker associations in non-Western contexts may be due to cross-cultural differences in the underly-ing mechanisms of LMX and they call for research that examines LMX content in the international context. Furthermore, they state that “change in construct meaning across cultures is an alternative explanation” for attenuated relationships (p. 1104). In this review, we also argue for a critical need to incorporate emic (cultural-specific) conceptualiza-tions of LMX in international research.
MeasurementThis current review of international LMX
research suggests three commonly used measure-ment instruments to assess LMX perceptions (see the Appendix). Of the 93 studies reviewed, 48 (52%) used the 7-item, unidimensional LMX-7 scale (Scandura & Graen, 1984; Graen & Uhl-Bien, 1995). Another commonly used scale is the 12-item multidimensional LMX-MDM scale (Liden & Maslyn, 1998), which assesses four LMX dimen-sions: affect, loyalty, contribution, and professional respect. Although LMX-MDM is a multidimen-sional measure (MDM), notwithstanding a few exceptions (e.g., Ansari, Hung, & Aafaqi; 2007; Lee, 2005; Wang, Law, & Chen, 2008), international research using LMX-MDM mostly examined LMX as a higher-order construct, rather than studying the dimensions’ differential relations with outcomes.
A common reliance on these validated scales produces the benefit of consistency and compara-bility of empirical LMX studies within and across cultures. However, LMX is a complex and multi-dimensional exchange relationship and we may be trading rigor for relevance (Hiller, DeChurch, Murase, & Doty, 2011; Staw, 1995) by not seeking to understand cultural variations in LMX meaning via in-depth interviews and focus groups for further theoretical refinement. A more complete conceptual understanding of LMX in non-Western contexts is essential for construct validity and will ultimately aid in advancing both theory and practice.
A call for international studies that examine indigenous LMX dimensions is long overdue. A common and troubling reliance on measurement scales based on Western conceptualizations may limit our ability to understand the varied cultural nuances in LMX relationships. My review of the international literature suggests that the four LMX-MDM dimensions are theoretically and empirically meaningful across cultures. However, there may be additional, indigenous facets of LMX relationships that research has yet to identify.
For example, in Confucian cultures, guanxi describes dyadic relationship quality and it is the key driver of work relations. Confucian relational-ism characterizes personal relations as the basic unit of social systems and Chinese society is so relation-ship oriented that guanxi is pursued for its own sake (Chen, Chen, & Huang, 2013; Hwang, 2009). Guanxi relationships are holistic in that they involve care and concern for the social, psychological, and economic (i.e., on the job and off the job domains) welfare of the other member (Chen, Friedman, Yu, Fang, & Lu, 2009). Recently, Chen, Yu, and Son (2014) suggested that the focus of LMX research has long been on Western LMX theory and that research needs to move beyond Western conceptualizations and identify indigenous LMX components that involve an off-the-job personal relationship. Almost two decades ago, House and Aditya (1997) sug-gested that LMX theory reflects U.S. cultural prefer-ences for a separation between work and personal relations; however, research has still yet to extend LMX theory beyond the Western business context.
To delineate the distinction of guanxi from LMX, Law, Wong, Wang, and Wang (2000) defined leader–member guanxi (LMG) in non-work-related social exchanges, such as gift giving and dinner invitations. The major differ-ence between Chinese LMG and Western LMX is that whereas LMX is limited to work-related exchanges, LMG includes non-work-related social exchange (Chen et al., 2013). Given that Chinese leader–member relationships involve both work and off-the-job domains, an overarching frame-work depicting leader–member exchange qual-ity in the Chinese context should include both LMX and LMG to thoroughly assess relation-ship quality. In fact, due to the limited ability of LMX to capture indigenous cultural nuances in leader–member exchange relations (Hui & Graen, 1997), Chen et al. (2009) developed a scale to assess supervisor–subordinate guanxi quality encompassing both work and non-work-related
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aspects of the dyadic relationship, which is con-ceptually similar to LMX in the Western context (Chen et al., 2013). Recently, in the Chinese context, Chen et al. (2013) found that LMX dif-ferentiation was not significantly related to job satisfaction or turnover intent; however, LMG differentiation was negatively related to job sat-isfaction and positively related to turnover intent. Thus, guanxi may be a key aspect of LMX in the Chinese context. In assessing LMX quality, it is time that researchers integrate the broader social context and incorporate culturally significant exchange norms into measurement instruments. LMX will represent an overarching framework for the study of social exchange relationships at work only when indigenous perspectives are also inte-grated into theoretical development.
Similar to the significance of guanxi in Chinese LMX relationships, dominant Confucian values––hierarchy and relationalism––suggest another signif-icant indigenous construct in high-quality exchange relations. Paternalistic leadership has been at the forefront of indigenous dyadic leadership theo-ries and has received growing interest within the past decade (Aycan, Schyns, Sun, Felfe, & Saher, 2013; Chen, Eberly, Chiang, Farh, & Cheng, 2014; Cheng et al., 2014; Pellegrini & Scandura, 2010). Paternalism combines discipline and authority with fatherly benevolence (Farh & Cheng, 2000). Benevolence refers to a holistic concern for sub-ordinate’s well-being and people in authority con-sider it an obligation to take a personal interest in the follower’s off-the-job lives to promote welfare (Gelfand, Erez, & Aycan, 2007). Subordinates show loyalty and deference out of respect and appre-ciation for the leader’s care and protection (Aycan, 2006). Paternalistic leaders are also authoritative (as opposed to authoritarian) and they exercise control to promote the subordinate’s welfare (Aycan, 2006). Subordinates know the rules are for their advance-ment and respect and willingly comply with the leader’s decisions. Research suggests that in pater-nalistic business contexts, such as Turkey, India, China, and Mexico (Aycan et al., 2000; Pellegrini & Scandura, 2008), paternalism may be a key compo-nent in defining high-quality LMX relations. Aycan et al. (2013) recently suggested that paternalism is commonly practiced in VC cultures of Asia, the Middle East, Latin America, and Africa and that it represents leadership dynamics in the majority of the world. Incorporating emic management practices into LMX measurement instruments will broaden the scope and representativeness of LMX theory.
Regarding the established LMX dimensions (i.e., affect, contribution, loyalty, respect), what is interpreted as positive behavior may not have a similar connotation in another culture. For exam-ple, one item from Liden and Maslyn’s (1998) affect scale is “My supervisor is the kind of person one would like to have as a friend.” The definition of ‘friend’ may vary considerably across cultures. In a cross-cultural study in Hong Kong, Smith, Misumi, Tayeb, Peterson, and Bond (1989) found that when an employee encounters difficulties, the discussion by the supervisor of the employee’s per-sonal problems with other team members in the absence of the employee is considered “considerate behavior,” whereas respondents from the United States regard talking “behind the back” of this per-son as inconsiderate. Thus, future research needs to delve deeper into culturally accepted as well as culturally questionable behaviors for LMX dimen-sions to provide a solid and practical theory for business leaders in cross-cultural work contexts.
Similarly, loyalty may have different conno-tations across cultures. According to Liden and Maslyn (1998), loyalty refers to “the expression of public support for the goals and the personal character of the other member of the LMX dyad” (p. 50). However, in paternalistic societies loyalty goes beyond simple expressions of public sup-port. Unquestioning obedience and deference to the leader are essential elements of loyalty in leader–member relations in paternalistic work envi-ronments (Pellegrini & Scandura, 2006). Therefore, the definition of “loyalty” may have additional emic aspects that have yet to be identified in LMX research.
Furthermore, Liden and Maslyn (1998) ini-tially conceptualized trust as a separate, fifth dimension of LMX. However, their findings sug-gested that trust and loyalty were not easily distin-guishable and they decided to include trust in the loyalty dimension and to drop the separate trust dimension. However, trust is a central tenet of social exchange theory, and given the significance and salience of trust in relationship-oriented, VC business contexts, trust as originally conceptual-ized by Liden and Maslyn (1998) may appear as an additional dimension in non-Western business contexts.
Antecedents of LMX in the International Context
The current review suggests a disproportion-ate attention devoted to outcomes rather than
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antecedents; however, there is still ample research on antecedents of LMX from an international con-text. Of the 93 studies reviewed, 32 (34%) studied one or more antecedents of LMX. To provide a ref-erence for the reader, Table 19.1 presents a list of the studies identified as examining LMX in an interna-tional context. This list was constructed by perform-ing a search of the key terms LMX, leader–member exchange, international, and cross-cultural in the PsychINFO database. I also added studies from the references lists of the identified articles.
Table 19.1 lists the studies reviewed, including antecedent and outcome variables, LMX measure-ment instruments used, source of ratings (e.g., member, leader, personnel records), as well as sam-ple information.
The majority of studies examining LMX ante-cedents in the international context employed cross-sectional/same source (45%) and cross-sectional/multisource (39%) methods fol-lowed by time-lag/multisource (6%) designs. Specifically, research that examines leader–member similarity (e.g., organizational tenure, value, per-sonality, gender, age, national origin similarity) as LMX antecedents (Ashkanasy & O’Connor, 1997; Bhal, Ansari, & Aafaqi, 2007; Loi & Ngo, 2009; Schaubroeck & Lam, 2002; Pelled & Xin, 2000; Testa, 2009) predominantly adopted cross-sectional designs. These studies suggest subordinates in high-quality exchanges are more similar to their leaders on gender, national origin, values, and per-sonality. For example, in China, Loi and Ngo (2009) found that male subordinates with female supervi-sors reported the lowest LMX quality, whereas male subordinates with male supervisors reported the highest LMX. However, given the cross-sectional design in all these studies, we still do not know much about the longitudinal effects of similarity. For example, at early stages of LMX development, demographic similarities may be more salient pre-dictors of LMX quality. However, as LMX matures into a high-quality relationship, non-work-related predictors (e.g., demographics) may no longer be salient in determining LMX quality. Thus, these relations should be examined at more than one time point with a sufficient time lag between to allow LMX relationships to mature.
In addition, international research should incor-porate the broader social, historical, and political context into LMX theory building. For example, Waismel-Manor, Berger, and Dikstein (2010) stud-ied Ashkenazi Jews and Mizrahi Jews in Israel and found LMX to be more strongly related to OCBs
in similar dyads. Gong, Farh, and Chattopadhyay (2012) found shared dialect identity (e.g., Mandarin, Hakka, Mingnan) to be a predictor of LMX in Taiwan. One similarity variable that may be a significant predictor of LMX quality in the Middle Eastern business context is political affilia-tion. Numerous Middle Eastern countries are cur-rently experiencing political turmoil and examining value similarity or congruence in political affiliation as a potential LMX antecedent is a relevant and timely endeavor. For example, in the Turkish busi-ness context, a leader affiliated with AKP (Justice Development Party; a right-wing party developed from the tradition of Islamism) and a member affiliated with CHP (Republican People’s Party; a center-left party endorsing social liberalism) may report significantly lower LMX compared to dyads congruent in political values.
Another untapped research avenue includes leader–member similarity on implicit leadership theories (ILTs) and implicit followership theories (IFTs) (Engle & Lord, 1997; Sy, 2010). In a lon-gitudinal study in the U.K., Epitropaki and Martin (2005) found that leader–member differences in prototypic ILTs (e.g., sensitivity) negatively influ-ence LMX, whereas differences in antiprototypic ILTs (e.g., tyranny) positively influence LMX qual-ity. Furthermore, in the U.S. context, Sy (2010) found leaders’ followership prototype (e.g., enthusi-asm) to be positively related to LMX, whereas lead-ers’ followership antiprototype (e.g., conformity) was negatively related to LMX. However, these definitions originated in a Western context and therefore ILTs and IFTs as LMX antecedents should be examined carefully in an international business context. This research stream is promising for inter-national LMX research since leaders and members may have culturally ingrained notions of the defini-tion of an ideal leader and follower and uncover-ing indigenous ILTs and IFTs may provide a more in-depth understanding of LMX antecedents. Given the limited number of LMX studies on ILTs and IFTs, the potential for theory development in inter-national LMX research is significant (Epitropaki, Sy, Martin, Tram-Quon, & Topakas, 2013).
Another promising avenue in studying LMX antecedents is that all the studies examining ante-cedents in extant research measured LMX from the subordinate’s perspective. To date, little progress has been made in incorporating the leader’s per-spective [i.e., supervisor leader–member exchange (SLMX)] in examining predictors of LMX qual-ity. A central tenet of LMX theory is that LMX
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development is a three-stage process and in the first stage (i.e., role taking), the leader may offer opportunities to the member based on the leader’s perceptions of the member’s abilities (Graen & Scandura, 1987). Therefore, leaders’ percep-tions may significantly influence initial LMX quality starting from the stranger (low-quality) phase through the maturity (high-quality) phase. Furthermore, given the power distance in the leader’s favor, leaders likely play a more signifi-cant role in LMX relationship quality (Dulebohn, Bommer, Liden, Brouer, & Ferris, 2012), and it is surprising that research has yet to examine antecedents of LMX quality from the leader’s perspective.
Research examining antecedents of LMX in the international context has predominantly emerged from China (28%), followed by Taiwan (9%) and Turkey (6%). There is a significant need for stud-ies from Latin America, the Middle East, and non-Confucian Asia to gain a more thorough understanding of what drives LMX quality univer-sally as well as locally.
Finally, meta-analytic findings suggest that the strength of the influence of transformational leadership in predicting LMX does not show cross-cultural variations (Rockstuhl et al., 2012). On the other hand, results suggest a significantly weaker association between leader trust (as an ante-cedent) and LMX quality in VC cultures as com-pared to HI cultures. This is an important finding given the significance of trust in LMX theory. We attribute this attenuated association to the moderat-ing effect of national culture (i.e., HI vs. VC); how-ever, we argue that the weaker association may be due to insufficient LMX construct validity in inter-national contexts. The association between leader trust and LMX may be stronger in the Western context because LMX meaning and dimensions originated from the Western context. Also, in the meta-analysis of Rockstuhl et al. (2012), numer-ous VC countries (e.g., China, India, Turkey) are studied as one group; however, business relations in each of these countries are influenced by dif-ferent norms. For example, in China, guanxi may be a more significant predictor of LMX, whereas in Turkey paternalism may be more salient in pre-dicting LMX quality. Each VC context has unique political, historical, and cultural perspectives and there is a significant need to identify additional, emic dimensions to adequately capture LMX con-struct meaning. We certainly do not suggest a sepa-rate LMX theory for each country, which would
move the field away from parsimony and away from a unifying theory of LMX (Liden, 2012). However, as Liden (2012) recently suggested, LMX research from an international context needs to incorporate cultural contextual moderators between LMX and antecedents as well as outcomes. Research from the international context needs to move beyond a predominantly U.S.-based perspective and address LMX construct validity by integrating local cultural nuances into the studies.
Outcomes of LMX in the International Context
International research on LMX predominantly focused on outcomes as compared to antecedents and of the 93 studies we reviewed, 83 (89%) exam-ined one or more outcomes of LMX. Consistent with Rockstuhl et al. (2012), the current review suggests an overwhelming interest specifically in five outcome variables. A majority of the studies exam-ined follower organizational commitment (32%), follower performance (25%), follower turnover intentions (16%), follower job satisfaction (15%), follower OCB (14%), and follower justice percep-tions (14%). This attention in a specific set of out-comes may limit the development of international LMX theory. We suggest that additional outcomes relevant to cross-cultural social exchange relations, such as cultural intelligence and participative deci-sion making, warrant research attention.
The meta-analysis of Rockstuhl et al. (2012) did not find cross-cultural variations in relationships of LMX with followers’ task performance and orga-nizational commitment. However, relationships of LMX with OCB, justice perceptions, job satisfac-tion, and turnover intentions were all significantly stronger in Western contexts than in VC (e.g., Asian) contexts. Although Rockstuhl et al. suggest the moderating influence of national culture (i.e., HI vs. VC) as an explanation for attenuated rela-tionships, we suggest that it is a construct validity issue and that research has yet to identify significant emic LMX dimensions that may be relevant to these particular outcomes. Relationships between LMX and these outcomes may be weaker in the interna-tional context because research has yet to make an effort to clearly understand the conceptual meaning of the LMX construct and appropriately measure its construct domain in the international context.
Furthermore, extant international research on LMX has focused exclusively on follower outcomes. There is a significant need for studies that examine the benefits as well as potential disadvantages for
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leaders in high-LMX relationships. For example, Harris and Kacmar (2006), almost a decade ago, showed that high-LMX involved high levels of stress for followers; however, we still do not know much about stressors for leaders in high-LMX rela-tionships. International research that examines the influence of high-LMX on leader outcomes is long overdue and results from this research stream are essential to effectively support high-quality LMX relationships and prevent early leader exit. There is also a significant need for studies that examine the benefits of high LMX relationships that accrue to organizations. Specifically, tangible organizational effectiveness outcomes as outlined by Hiller et al. (2011), such as sales growth, return on invested capital, and profit, have yet to be examined in the international LMX literature.
The majority of the research examining LMX outcomes in an international context measured LMX with LMX-7 (57%) (Scandura & Graen, 1984; Graen & Uhl-Bien, 1995), followed by LMX-MDM (19%) (Liden & Maslyn, 1998), pre-dominantly from the follower’s perspective (95%). The majority of studies employed cross-sectional/common source (58%), cross-sectional/multisource (32%), followed by longitudinal/multisource (6%) research designs. An overreliance on quantitative, cross-sectional studies in LMX research not only limits our understanding of the cultural nuances in LMX meaning but is also an unfitting design choice in studies that imply causal connections (i.e., out-comes research).
In addition, of the 83 studies we reviewed, more than half were from China (32%), India (12%), Malaysia (7%), and Taiwan (6%). There is a signifi-cant need in international LMX research to extend theory development beyond Asia, specifically into Latin American and Middle Eastern business contexts.
Despite two decades of research since Liden and Maslyn (1998) introduced LMX-MDM, out of 83 studies examining LMX outcomes, only 6% assessed LMX as a four-dimensional construct. As previ-ously suggested by Liden and Maslyn (1998), these studies found that different LMX dimensions were differentially associated with outcome variables. For example, in Malaysia (with a predominantly Chinese sample), Ansari et al. (2007) found affect and professional respect were more salient currencies of LMX relationships. In India, Lee (2005) found that all four dimensions were positively related to transformational leadership; however, only loyalty was significantly related to transactional leadership.
More recently, in Malaysia, Lo et al. (2010) found a two-dimensional LMX-MDM measurement model in which affect and loyalty loaded on the first dimension and contribution and respect items loaded on the second dimension. There is a signifi-cant research gap in examining LMX as a multidi-mensional construct. The potential influence of the cultural context on which LMX dimensions may be more salient to individuals in international settings warrants research attention.
Directions for Future International LMX Research
In this section, we will recap our conclusions and offer a number of emerging research direc-tions and rewarding inquiries for future research in international LMX.
Based on this current review of 93 studies in international LMX, we suggest three major limi-tations that characterize this body of research. First, all of these studies failed to integrate emic LMX dimensions into their studies. Cultural context influences leadership prototypes and to advance knowledge, research needs to move beyond a predefined Western conceptualization of LMX and attend to the meanings and perspectives that emerge from international research. Current LMX theory may depict an oversimplification of LMX relationships in non-Western cultures (Khatri, Tsang, & Begley, 2006). An indigenous focus on LMX nuances in international contexts should be a priority to advance LMX theory. Therefore, future research employing qualitative research designs to identify indigenous meanings is warranted.
The second limitation is a predominantly uni-dimensional conceptualization of LMX in current LMX research. This may be a significant limitation in international LMX studies since the priorities ascribed to different LMX dimensions may differ across cultures. An overall LMX quality is certainly an appropriate operationalization depending on the research question; however, multidimensional con-ceptualization of LMX specifically in the interna-tional context would be informative and should be given increasing research attention.
Third, extant LMX research in international contexts predominantly focused on LMX rela-tionship quality and has paid almost no attention to examining relational dynamics and processes (Uhl-Bien, 2006). LMX meaning is limited by the sociocultural context and future research needs to integrate the broader local, historical, and political
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contexts in examining relational dynamics in LMX. Research findings from international contexts are specifically apt to contribute in-depth information toward a more comprehensive framework integrat-ing LMX relationships and relationship dynamics. It is also essential that future research moves beyond cultural values and provides richer insight into the processes and local context.
During the past decade, LMX research has increasingly incorporated the broader relational social context into LMX theory building. There is flourishing international research examining social comparison processes in single-leader con-texts, such as LMX social comparison (LMXSC; Vidyarthi et al., 2010), relative LMX (RLMX; Henderson et al., 2008), and LMX relational sepa-ration (Harris et al., 2014). However, to date, there is no international research from dual leader con-texts in which each LMX relationship exists within the context of the other relationship (Vidyarthi et al., 2014).
Furthermore, there is increasing research inter-est in examining LMX relationships within the context of co-worker exchange (CWX), SLMX, and LLX (leader–leader exchange) relations and a fruitful research direction would be to add another dyadic relationship to the current nomenclature (Erdogan & Bauer, 2014). We suggest that a fol-lower’s exchange relationship with his or her for-mal (organizationally assigned) mentor (formal mentor-member exchange; FMMX) is a fruitful, emerging research direction. Mentoring and LMX relationships are embedded in the same organi-zational context and it would be interesting and informative to examine the influence of conflicting advice from the mentor and leader on follower and organizational outcomes.
Finally, organizations are increasingly witness-ing digital lifestyles along with technology-driven work models. We suggest a better understanding of LMX in these newly emerging work structures. This is specifically relevant for international research since traditional LMX theory is built on a founda-tion of hierarchical, face-to-face interactions and may not adequately represent LMX relationships in emerging work models mediated through technol-ogy, such as e-leadership (Avolio, Sosik, Kahai, & Baker, 2014) or a more recent, flatter organizational structure referred to as holacracy (Denning, 2014). International LMX research in emerging, alternative work structures represents an area of considerable opportunity for future studies to make pioneering scholarly and practical contributions.
ConclusionsWe hope that this timely review will serve as a
useful guide in future inquiries into the emerging body of literature in international LMX and will help to advance the field to a more in-depth explo-ration of LMX meaning and relational context.
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AppendixMost frequently used leader–member exchange (LMX) scales listed in descending order of publication date.
Affect:1. I like my supervisor very much as a person.2. My supervisor is the kind of person one
would like to have as a friend.3. My supervisor is a lot of fun to work with.
Loyalty:4. My supervisor defends my work actions to a
superior, even without complete knowledge of the issue in question.
5. My supervisor would come to my defense if I were “attacked” by others.
6. My supervisor would defend me to others in the organization if I made an honest mistake.
Contribution:7. I do work for my supervisor that goes beyond
what is specified in my job description.8. I am willing to apply extra efforts, beyond
those normally required, to meet my supervisor’s work goals.
9. I do not mind working my hardest for my supervisor.
Professional Respect:10. I am impressed with my supervisor’s
knowledge of his/her job.11. I respect my supervisor’s knowledge of and
competence on the job.12. I admire my supervisor’s professional skills.
LMX-7 (Graen & Uhl-Bien, 1995)1. Do you know where you stand with your
leader.… do you usually know how satisfied your leader is with what you do? (Does your member usually know)
2. How well does your leader understand your job problems and needs? (How well do you understand)
3. How well does your leader recognize your potential? (How well do you recognize)
4. Regardless of how much formal authority he/she has built into his/her position, what are the chances that your leader would use his/her power to help you solve problems in your work? (What are the chances that you would)
5. Again, regardless of the amount of formal authority your leader has, what are the chances that he/she would “bail you out” at his/her expense? (What are the chances that you would)
6. I have enough confidence in my leader that I would defend and justify his/her decisions if he/she were not present to do so. (Your member would)
7. How would you characterize your working relationship with your leader? (Your member)
Rarely Occasionally Sometimes Fairly Often
Very Often
Not a Bit
A Little
A Fair Amount
Quite a Bit
A Great Deal
Not at All A Little Moderately Mostly Fully
None Small Moderate High Very High
None Small Moderate High Very High
Strongly Disagree Neutral Agree Strongly
Disagree Agree
Extremely Worse than
Average Better than
Extremely
Ineffective Average Average Effective
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Notes: Continuous scale of sum of 5-point items (1 left to 5 right). Leader’s form consists of the same seven items asked about member (leader in parentheses).
LMX-7 (Scandura & Graen, 1984)
1. Do you usually feel that you know where you stand, do you usually know how satisfied your immediate supervisor is with what you do?
2. How well do you feel that your immediate supervisor understands your problems and needs?
3. How well do you feel that your immediate supervisor recognizes your potential?
4. Regardless of how much formal authority your immediate supervisor has built into his or her position, what are the chances that he or she would be personally inclined to use power to help you solve problems in your work?
5. Again, regardless of the amount of formal authority your immediate supervisor has, to what extent can you count on him or her to “bail you out” at his or her expense when you really need it?
6. I have enough confidence in my immediate supervisor that I would defend and justify his or her decisions if he or she were not present to do so.
7. How would you characterize your working relationship with your immediate supervisor?
1 2 3 4Never Seldom Usually Alwaysknow where I stand
know where I stand
know where I stand
know where I stand
1 2 3 4
Not at all
Some but not enough
Well enough
Completely
1 2 3 4
Not at all
Some but not enough
As much as the next person
Fully
1 2 3 4
No chance
Might or might not
Probably would
Certainly would
1 2 3 4
No chance
Might or might not
Probably would
Certainly would
1 2 3 4
Probably not
Maybe Probably would
Certainly would
1 2 3 4
Less than average
About average
Better than average
Extremely effective
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