The Impact of Leader-Member Mutual Tenure on Employee Level Outcomes-The Mediating Role of Leader-Member Exchange Quality

Syed Zaheer, Abbas Kazmi
2017 NUML International Journal of Business & Management   unpublished
Deriving its theoretical foundations from congruence theory and path dependence perspective, present study examines the relationship of Leader-Member Mutual Tenure (LMMT) with various employee level outcomes. The study also explains underlying mechanism i.e Perceived Quality of Leader-Member Exchange (LMX). Data were collected from 283 employees working in the cement industry of Pakistan. Correlations and Regression were used to test the direct relations and mediation. Barron & Kenny's
more » ... procedure was utilized to test the mediation paths. The study has confirmed the main effect relationships of both LMMT and perceived LMX Quality with employee level outcomes. LMMT has positive significant relationship with Job Satisfaction and Organizational Commitment. It is however, negatively related with Job Stress and Turnover Intentions. The LMX Quality is also positively associated with Job Satisfaction and Organizational Commitment, while it has negative relationship with Job Stress and Turnover Intentions. LMMT does positively influence the LMX Quality. Perceived LMX quality fully mediates the relationship between LMMT and Organizational Commitment. Partial support for the intervening role of perceived LMX quality in relationships of LMMT with Job Satisfaction, Job Stress and, Turnover Intentions was also witnessed. The study has important theoretical and managerial implications. Theoretically, the relationship between LMMT and the employee level outcomes and the mediation effect of LMX Quality has rarely been tested before; hence making valuable addition to the literature. Utilization of data from cement industry of Pakistan provides perspectives from Asian economy, a developing nation having different culture and management practices as compared to the Western world. Managers can utilize these results to improve the employee level outcomes through improving the LMX Quality of the organizational members.