Measures the quality of the dyadic exchange relationship between a leader and a member — the degree to which the relationship is characterised by mutual respect, trust, and obligation. LMX Theory proposes that leaders develop differentiated relationships with members: high-quality relationships involve trust, support, and latitude; low-quality relationships are purely transactional. High LMX quality predicts job satisfaction, commitment, citizenship behaviour, and performance. In service marketing, high LMX between frontline supervisors and employees drives customer orientation, service climate quality, and customer satisfaction.
Graen, G.B., & Uhl-Bien, M. (1995). Relationship-based approach to leadership: Development of leader-member exchange (LMX) theory of leadership over 25 years. Journal of Management, 21(2), 219–247.
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