The paper examines the effect of relative leader-member exchange (LMX) on follower's in-role performance, citizenship behaviour and cynicism via relational identification. Moreover, LMXSC (LMXSC) moderates the direct and mediating relationship.
Based on multi-level (individual and group level) model, dyadic data were collected from 298 employees working under 47 group managers in the banking sector in Pakistan.
The multi-level moderated mediation model tested in Mplus and HLM software showed the full support for direct, mediating and moderating hypothesized relationships; however, the moderated mediation hypothesis was partially supported. It reveals that relative LMX standing of followers predicted in-role performance, organizational citizenship behaviour at an individual level (OCB-individual) and cynicism. Relational identification with the leader mediated the relationship. Moreover, at high LMXSC, the relationship between relative LMX and relational identification and consequently the outcomes were stronger.
LMX has widely been studied at dyadic level, despite the suggested high and low LMX quality relationships that exist in a workgroup. This study not only investigates the role of relative LMX on employee performance through relational identification but also reports that subjective evaluation of LMXSC plays a major role in promoting employee performance.
