Abstract

ARIANI, Dorothea W.  and  FERIYANTO, Nur. How leader-member exchange affects work outcomes in small-and-medium enterprises?. SAJHRM [online]. 2024, vol.22, pp.1-12. ISSN 2071-078X.  http://dx.doi.org/10.4102/sajhrm.v22i0.2397.

ORIENTATION: Employees with a collectivistic culture want the closeness and support of their leaders. How leader-member exchange (LMX), perceived organisational support (POS), job satisfaction (JS) and organisational commitment (OC) influence each other still requires in-depth research because there are differences between the results of previous studies. RESEARCH PURPOSE: This study examined the relationship model of LMX and POS as antecedent, mediator and moderator variables on work outcomes such as JS and OC in small- and medium enterprises (SMEs) with a collectivistic culture and high-power distance MOTIVATION FOR THE STUDY: Leadership in SMEs gets less attention because of its role in managing and carrying out operational activities. RESEARCH APPROACH/DESIGN AND METHOD: Data were collected from 427 employees using questionnaires with purposive sampling, which was tested for validity and reliability. Structural equation modelling (SEM) and multi-group SEM were used to test the relationship model. MAIN FINDINGS: The results of testing four relationship models proved that the LMX relationship did not directly affect JS and OC but was mediated by POS. LMX can also be a mediator and moderator of the relationship model PRACTICAL/MANAGERIAL IMPLICATIONS: This study emphasises the need to minimise the differences between in-group and out-group in the leaders-followers relationship to improve employee performance. Leaders must expand the range of their relationships with followers to improve work outcomes. Contribution/value-add: This study examined LMX as an important predictor of work outcomes with clearer mechanisms. LMX cannot be a predictor if employees do not feel the leader's support as a representative of the organisation.

Keywords : leader-member exchange; perceived organisational support; job satisfaction; organisational commitment; collectivistic culture.

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