A new model for examining the leader – member exchange (LMX) theory

The theory of leader – member exchange (LMX) is re-examined. The concepts of social and economic exchange misused in previous research are clarified. A model that describes the exchange relationships between manager and subordinates is presented. The model challenges the well-accepted positive relationship between high quality of LMXs and organizational performance in previous studies by pointing out that the relationship may lead to negative...