SOAS Research Online

Abstract

In the current study, we aim to extend the understanding of how and when leader-member exchange social comparison (LMXSC) influences followers’ work behaviour. Based on social exchange theory, we argue that felt obligation to one’s leader is a mediator of the relationship between LMXSC and follower outcomes. Further, we posit that the relationship between LMXSC and felt obligation will occur over and above overall LMX quality. We also investigate whether the effect of LMXSC is not consistent across employees but influenced by their level of psychological entitlement (PE). We found evidence that LMXSC was associated with followers’ organizational commitment in Study 1 (using data collected in two phases from 188 employees) and both organizational commitment and job performance in Study 2 (based on data collected in two phases from 300 employees and their 34 supervisors) via felt obligation toward the leader. In both studies, we found this relationship was significant while controlling for LMX quality, suggesting that perceptions of relative LMX standing are more influential than overall LMX quality. Moreover, high levels of PE reduced employees’ feelings of obligation to reciprocate positive treatment and the extent to which they exhibit higher levels of organizational commitment and job performance. Our findings show that individual differences play a significant role in determining the outcomes of exchange relationships.