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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.

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