LMX Differentiation through the Lens of Categorization Elaboration Model: The Interplay between Informational Justice Climate and Team Informational Elaboration

This study examines how Leader-Member Exchange (LMX) differentiation impacts team effectiveness through the lens of the Categorization Elaboration Model (CEM). We propose and test a moderated mediation model, where team information elaboration mediates the relationship between LMX differentiation and team effectiveness, and informational justice climate moderates the effect of LMX differentiation on team information elaboration. Using data from 106 teams in South Korea, the results confirm that LMX differentiation negatively impacts team effectiveness through reduced information elaboration. This negative effect is mitigated under high informational justice and exacerbated under low informational justice. The study contributes to the LMX and team diversity literature by integrating CEM, clarifying mixed findings on LMX differentiation, and highlighting the role of informational justice climate.