Subordinates’ core self-evaluations and performance predict leader-rated LMX

Purpose: The purpose of this paper is to test the effects of subordinates’ individual differences or traits and their performance behavior on the formation of leaders’ LMX, based on leader-member exchange (LMX) theory, thus proposing that both who subordinates are and what they do may affect supervisors’ LMX perceptions. Design/methodology/approach: Two studies were conducted. The first was a non-experimental field study and the second was a laboratory experiment. Findings: Study 1, a non-experimental field study, HLM, showed that subordinates’ self-reported characteristics predict their leaders’ LMX ratings; Study 2, a laboratory experiment, showed that subordinate performance causes leaders’ LMX perceptions while holding subordinate’s individual differences constant. Originality/value: The current research was the first to demonstrate experimentally that LMX develops over multiple interactions. Additionally, it demonstrates that task-oriented behavior (i.e. job performance) and personality characteristics (i.e. internal locus of control and self-efficacy) are predictors of LMX.