Leader Member Exchange Revisited: An Investigation of the Moderating and Mediating Effects of LMX in Two Samples — USA and India

Numerous studies of supervisor-subordinate relationships (LMX) have confirmed the differential impact of the quality of relationship on subordinate ratings. In other words, subordinates that have high quality relationships with their supervisors receive higher rewards (e.g., ratings, guidance, support, etc.). However, most of these studies have assumed that high quality LMX relationships automatically lead to high performance ratings, without examining the impact of performance levels. In this two-nation quasi-experimental study, we test for the moderation and mediation effects of LMX quality. Further, given the recent emphasis on, and call for, cross-cultural studies, we extend the study of LMX to a cross-cultural context by comparing the workings of LMX in the U.S. and India. Our results show that the quality of relationship had a significant impact on performance ratings in India — while this did not hold true in the U.S. sample.