Asia Pacific Journal of Management

, Volume 27, Issue 4, pp 625–646 | Cite as

Currencies of exchange and global LMX: How they affect employee task performance and extra-role performance

  • Kenneth S. Law
  • Hui WangEmail author
  • Chun Hui


Two studies are presented in this research to integrate the unidimensional and multidimensional perspective of leader-member exchange (LMX). We posit that the dimensions of multidimensional LMX (LMX-MDM) are the exchange currencies of global LMX and investigate their joint effects on task performance and extra-role behaviors of employees. The results from Study One indicate that the affect, loyalty, contribution, and professional respect dimension of LMX-MDM influence overall level of leader-member relationship quality, and global LMX is positively related to task performance as well as organizational citizenship behaviors (OCB). Study Two partially replicates the results in Study One and demonstrates that global LMX is also associated with contextual performance of employees. Limitations and future research on LMX are discussed.


Leader-member exchange In-role performance Ex-role performance 


  1. Akaike, H. 1987. Factor analysis and AIC. Psychometica, 52: 317–332.CrossRefGoogle Scholar
  2. Allen, T. D., & Rush, M. C. 1998. The effects of organizational citizenship on performance judgments: A field study and a laboratory experiment. Journal of Applied Psychology, 83: 247–260.CrossRefGoogle Scholar
  3. Anderson, S. E., & Williams, L. J. 1996. Interpersonal, job, and individual factors related to helping processes at work. Journal of Applied Psychology, 81: 282–296.CrossRefGoogle Scholar
  4. Arvey, R. D., & Murphy, K. R. 1998. Performance evaluation in work setting. Annual Review of Psychology, 49: 141–168.CrossRefGoogle Scholar
  5. Bass, B. M. 1990. Bass & Stogdill’s handbook of leadership, 3rd ed. New York: Free.Google Scholar
  6. Blau, P. M. 1964. Exchange and power in social life. New York: Jossey Bass.Google Scholar
  7. Borman, W. C. 1978. Exploring upper limits of reliability and validity in job performance rating. Journal of Applied Psychology, 63: 135–144.CrossRefGoogle Scholar
  8. Borman, W. C., & Motowidlo, S. J. 1993. Expanding the criterion domain to include elements of contextual performance. In N. Schmitt & W. C. Borman (Eds.). Personnel selection in organizations: 71–98. San Francisco: Jossey-Bass.Google Scholar
  9. Brislin, R. W. 1980. Translation and content analysis of oral and written material. In H. C. Triandis & J. W. Berry (Eds.). Handbook of cross-culture psychology, 12: 349–444. Boston: Allyn & Bacon.Google Scholar
  10. Chen, X., & Chen, C. C. 2004. On the intricacies of the Chinese guanxi: A process model of guanxi development. Asia Pacific Journal of Management, 21: 305–324.CrossRefGoogle Scholar
  11. Dansereau, F., Graen, G. B., & Haga, W. 1975. A vertical dyad approach to leadership within formal organizations. Organizational Behavior and Human Performance, 13: 46–78.CrossRefGoogle Scholar
  12. Day, D. D., & Crain, E. C. 1992. The role of affect and ability in initial exchange quality perception. Group and Organization Management, 17: 380–397.CrossRefGoogle Scholar
  13. Deluga, R. J. 1994. Supervisor trust building, leader-member exchange and organizational citizenship behavior. Journal of Occupational and Organizational Psychology, 67: 315–326.Google Scholar
  14. Deluga, R. J. 1998. Leader-member exchange quality and effectiveness rating. Group and Organization Management, 23: 189–216.CrossRefGoogle Scholar
  15. Deluga, R. J., & Perry, J. T. 1994. The role of subordinate performance and ingratiation in leader-member exchanges. Group and Organization Management, 19: 67–86.CrossRefGoogle Scholar
  16. Dienesch, R. M., & Liden, R. C. 1986. Leader-member exchange model of leadership: A critique and further development. Academy of Management Review, 11: 618–634.CrossRefGoogle Scholar
  17. Ding, D. Z. 1996. Exploring Chinese conflict management styles in joint ventures in the People’s Republic of China. Management Research News, 19: 43–54.CrossRefGoogle Scholar
  18. Duarte, N. T., Goodson, J. R., & Klich, N. R. 1994. Effects of dyadic quality and duration on performance appraisal. Academy of Management Journal, 37: 499–521.CrossRefGoogle Scholar
  19. Erdogan, B., Liden, R. C., & Kraimer, M. L. 2006. Justice and leader-member exchange: The moderating role of organizational culture. Academy of Management Journal, 49: 395–406.Google Scholar
  20. Ferris, G. R. 1985. Role of leadership in the employee withdraw process: A constructive replication. Journal of Applied Psychology, 70: 777–781.CrossRefGoogle Scholar
  21. Gerstner, C. R., & Day, D. V. 1997. Meta-analysis review of leader-member exchange theory: Correlation and construct issues. Journal of Applied Psychology, 82: 827–844.CrossRefGoogle Scholar
  22. Graen, G. B. 1976. Role making processes within complex organization. In M. D. Dunnette (Ed.), Handbook of industrial and organizational psychology. Chicago: Rand-McNally.Google Scholar
  23. Graen, G. B., & Cashman, J. 1975. A role-making model of leadership in formal organizations: A developmental approach. In J. G. Hunt & L. L. Larson (Eds.). Leadership frontiers: 143–165. Kent, OH: Kent State University Press.Google Scholar
  24. Graen, G. B., & Scandura, T. A. 1987. Toward a psychology of dyadic organizing. In L. L. Cummings & B. M. Staw (Eds.). Research in organizational behavior, 9: 175–208. Greenwich, CT: JAI.Google Scholar
  25. Graen, G. B., & Uhl-Bien, M. 1995. Development of leader-member exchange (LMX) theory of leadership over 25 years: Applying a multi-level multi-domain perspective. Leadership Quarterly, 6: 219–247.CrossRefGoogle Scholar
  26. Graen, G. B., Dansereau, J. F., & Minami, T. 1972. Dysfunctional leadership styles. Organizational Behavior & Human Performance, 7: 216–223.CrossRefGoogle Scholar
  27. Graen, G. B., Liden, R. C., & Hoel, W. 1982. The role of leadership in the employee withdrawal process. Journal of Applied Psychology, 67: 868–872.CrossRefGoogle Scholar
  28. Graen, G. B., Novak, M., & Sommerkamp, P. 1982. The effects of leader-member exchange and job design on productivity and job satisfaction: Testing a dual attachment model. Organizational Behavior and Human Performance, 30: 109–131.CrossRefGoogle Scholar
  29. Hofstede, G. 1980. Culture’s consequences: International differences in work-related values. Beverly Hills, CA: Sage.Google Scholar
  30. Hui, C., & Graen, G. B. 1997. Guanxi and professional leadership in contemporary Sino-American joint ventures in mainland China. Leadership Quarterly, 8: 451–465.CrossRefGoogle Scholar
  31. Hui, C., Law, K. S., & Chen, Z. X. 1999. A structural equation model of the effects of negative affectivity, leader-member exchange and perceived job mobility on in-role and extra-role performance: A Chinese case. Organizational Behavior and Human Decision Processes, 77: 3–21.CrossRefGoogle Scholar
  32. Ilies, R., Nahrgang, J. D., & Morgeson, F. P. 2007. Leader-member exchange and citizenship behaviors: A meta-analysis. Journal of Applied Psychology, 92: 269–277.CrossRefGoogle Scholar
  33. Ji, L., Peng, K., & Nisbett, R. E. 2000. Culture, control and perception of relationships in the environment. Journal of Personality and Social Psychology, 78: 943–955.CrossRefGoogle Scholar
  34. Jöreskog, K. G., & Sörbom, D. 2001. LISREL 8.5: Structural equation modeling with the SIMPLIS command language. Chicago: Scientific Software International Inc.Google Scholar
  35. Katz, D., & Kahn, R. L. 1978. The social psychology of organizations, 2nd ed. New York: Wiley.Google Scholar
  36. Lam, S. S. K., Hui, C., & Law, K. S. 1999. Organizational citizenship behavior: Comparing perspective of supervisors and subordinates across four international samples. Journal of Applied Psychology, 84: 594–601.CrossRefGoogle Scholar
  37. LePine, J. A., Erez, A., & Johnson, D. E. 2002. The nature and dimensionality of organizational citizenship behavior: A critical review and meta-analysis. Journal of Applied Psychology, 87: 52–65.CrossRefGoogle Scholar
  38. Liden, G., & Graen, G. B. 1980. Generalizability of the vertical dyad linkage model of leadership. Academy of Management Journal, 23: 451–465.CrossRefGoogle Scholar
  39. Liden, R. C., & Maslyn, J. M. 1998. Multidimensionality of leader-member exchange: An empirical assessment through scale development. Journal of Management, 24: 43–72.CrossRefGoogle Scholar
  40. Liden, R. C., Wayne, S. J., & Stilwell, D. 1993. A longitudinal study on the early development of leader-member exchanges. Journal of Applied Psychology, 78: 662–674.CrossRefGoogle Scholar
  41. Lindsay, C. P., & Dempsey, B. L. 1985. Experiences in training Chinese business people to use US management techniques. The Journal of Applied Behavioral Science, 21: 65–79.CrossRefGoogle Scholar
  42. Maslyn, J. M., & Uhl-Bien, M. 2001. Leader-member exchange and its dimensions: Effects of self-effort and other’s effort on relationship quality. Journal of Applied Psychology, 86: 697–708.CrossRefGoogle Scholar
  43. Nisbett, R. E., & Miyamoto, Y. 2005. The influence of culture: Holistic versus analytic perception. Trends in Cognitive Sciences, 9(10): 467–473.CrossRefGoogle Scholar
  44. Nisbett, R. E., Peng, K., Choi, I., & Norenzayan, A. 2001. Culture and systems of thought: Holistic versus analytic cognition. Psychological Review, 108: 291–310.CrossRefGoogle Scholar
  45. Nunnally, J. C. 1978. Psychometric theory, 2nd ed. New York: McGraw-Hill.Google Scholar
  46. Nystrom, P. C. 1990. Vertical exchanges and organizational commitments of American business mangers. Group and Organization Studies, 15: 296–312.CrossRefGoogle Scholar
  47. Organ, D. W. 1988. OCB: The good soldier syndrome. Lexington, MA: Lexington Books.Google Scholar
  48. Organ, D. W. 1997. Organizational citizenship behavior: It’s construct clean-up time. Human Performance, 10: 85–97.CrossRefGoogle Scholar
  49. Podsakoff, P. M., MacKenzie, S. B., Moorman, R. H., & Fetter, R. 1990. Transformational leader behaviors and their effects on followers’ trust in leader, satisfaction, and organizational citizenship behavior. Leadership Quarterly, 1: 107–142.CrossRefGoogle Scholar
  50. Podsakoff, P. M., MacKenzie, S. B., Paine, J. B., & Bachrach, D. G. 2000. Organizational citizenship behaviors: A critical review of the theoretical and empirical literature and Suggestions for Future Research. Journal of Management, 26: 513–563.CrossRefGoogle Scholar
  51. Scandura, T. A., & Graen, G. B. 1984. Moderating effects of initial leader-member exchange status on the effects of a leadership intervention. Journal of Applied Psychology, 69: 428–436.CrossRefGoogle Scholar
  52. Schriesheim, C. A., Castro, S. L., & Cogliser, C. C. 1999. Leader-member exchange (LMX) research: A comprehensive review of theory, measurement, and data-analytic practices. Leadership Quarterly, 10: 63–113.CrossRefGoogle Scholar
  53. Setton, R. P., Bennett, N., & Liden, R. C. 1996. Social exchange in organizations: The differential effect of perceived organizational support and leader member exchange. Journal of Applied Psychology, 81: 219–227.CrossRefGoogle Scholar
  54. Tsui, A. S., & Lau, C. M. (Eds.). 2002. Management of enterprises in the People’s Republic of China. Boston: Kluwer Academic.Google Scholar
  55. Tsui, A. S., Pearce, J. L., Porter, L. W., & Tripoli, A. M. 1997. Alternative approaches to the employee-organization relationship: Does investment in employees pay off? Academy of Management Journal, 40: 1089–1121.CrossRefGoogle Scholar
  56. Van Scotter, J. R., & Motowidlo, S. J. 1996. Interpersonal facilitation and job dedication as separate facets of contextual performance. Journal of Applied Psychology, 81: 525–531.CrossRefGoogle Scholar
  57. Vecchio, R. P., & Gobdel, B. C. 1984. The vertical dyad linkage model of leadership: Problems and prospects. Organizational Behavior and Human Decision Processes, 34: 5–20.Google Scholar
  58. Wang, H., Law, K. S., Wang, D., & Chen, Z. 2001. The linkage role of LMX: A mediating effect of LMX on the relationship between transformational leadership and followers’ performance and OCB. Paper presented at the annual Academy of Management Meeting, Washington, DC, August.Google Scholar
  59. Wang, H., Law, K. S., Hackett, R., Wang, D., & Chen, Z. 2005. Leader-member exchange as a mediator of the relationship between transformational leadership and followers’ performance and organizational citizenship behavior. Academy of Management Journal, 48: 420–432.Google Scholar
  60. Wayne, S. J., Shore, L. M., & Liden, R. C. 1997. Perceived organizational support and leader-member exchange: A social exchange perspective. Academy of Management Journal, 40: 82–111.CrossRefGoogle Scholar
  61. Wayne, S. J., Shore, L. M., Bommer, W. H., & Tetrick, L. E. 2002. The role of fair treatment and rewards in perceptions of organizational support and leader-member exchange. Journal of Applied Psychology, 87: 590–598.CrossRefGoogle Scholar
  62. Werner, J. M. 1994. Dimensions that make a difference: Examining the impact of in-role and extra-role behaviors on supervisory ratings. Journal of Applied Psychology, 79: 98–107.CrossRefGoogle Scholar
  63. Westwood, R. 1997. Harmony and patriarchy: The culture basis for paternalistic leadership among the overseas Chinese. Organizational Studies, 18: 445–480.CrossRefGoogle Scholar
  64. Yang, K. S. 1993. Chinese social orientation: An integrative analysis. In L. Y. Cheng, F. M. C. Cheung & C. N. Cheng (Eds.). Psychotherapy for the Chinese: 19–56. Hong Kong: The Chinese University of Hong Kong.Google Scholar

Copyright information

© Springer Science+Business Media, LLC 2009

Authors and Affiliations

  1. 1.Department of ManagementThe Chinese University of Hong KongShatinHong Kong
  2. 2.School of BusinessUniversity of Hong KongPok Fu Lam RoadHong Kong
  3. 3.Guanghua School of ManagementPeking UniversityBeijingPeople’s Republic of China

Personalised recommendations