Interactive Effects of Leader-Member Exchange (LMX) and Job Competency on Performance Expectancies and Job Performance

Despite the well-established positive relationship between a subordinate’s LMX and job performance, little research has been done on whether the effect of a subordinate’s LMX on job performance varies contingent on a subordinate’s job competency and whether this interactive effect of a subordinate’s LMX and job competency is mediated by an employee’s performance expectancies. Drawing on the substitutes for leadership model, this study developed and investigated a conceptual model and hypotheses. To test the proposed study model and hypotheses, empirical data was collected from 232 R&D employees working in a South Korean electronics parts company and was analyzed with a series of hierarchical multiple egression analyses. As expected, this study found that the LMX-job performance relationship was weaker when a subordinate was higher in job competency and that an employee’s performance expectancies transmitted the joint effect of LMX and job competency to job performance. The study findings were discussed along with managerial implications and recommendations for future research.