The Impact of Leader-Member Exchange (LMX) Quality on Subordinates’ Innovative Behavior and Performance

Drawing on social exchange theory and leader-member exchange (LMX) theory, this study seeks to examine the positive influences of the quality of the supervisor–subordinate relationship (i.e., LMX) on subordinates’ innovative behavior and in-role and extra-role job performance and the mediator role of innovative behaviors on the relationships of LMX with in-role and extra-role job performance. Data collected from 193 supervisor–subordinate dyads in Korean large companies across various industries indicated that (a) the quality of LMX positively affects subordinates’ innovative behaviors, in-role job performance, and extra-role job performance; (b) subordinates’ innovative behavior also positively affects subordinates’ in-role and extra-role job performance; and (c) subordinates’ innovative behaviors mediate the influence of LMX on subordinates’ in-role and extra-role job performance. The findings of this study highlight the importance of developing a high-quality LMX relationship for performance improvement and innovation for employees. Moreover, given the fact that innovative behaviors were found to be a significant mediator between LMX and performance, it is important for leaders to provide supportive resources (e.g., open communication, access to information, and consideration of the unique needs of employees) that encourage innovative behaviors.