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Purpose

– The purpose of this paper is to extend our understanding of the role of leaders in team relationship conflict. Leader-member exchange (LMX) differentiation was hypothesized to be positively related to team relationship conflict. Additionally, ethical leadership was hypothesized to moderate relations between LMX differentiation and team relationship conflict.

Design/methodology/approach

– Hypotheses were examined in a sample of 79 working teams. Data were collected via a questionnaire containing measures of LMX, team relationship conflict and ethical leadership.

Findings

– Hypotheses were supported by the data. LMX differentiation was positively related to team relationship conflict, and ethical leadership weakened the relationship between LMX differentiation and team relationship conflict.

Originality/value

– This is the first theoretical analysis and empirical study of relationships between LMX differentiation and team relationship conflict. Theoretically, by using LMX theory to account for team-level outcomes, this study extended power of LMX theory. Practically, these results suggest that leaders may be responsible for team relationship conflict.

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