My LMX standing with my leader as compared to my coworkers: conditional indirect effect of LMX social comparison

Purpose The paper examines the effect of relative leader-member exchange (LMX) on follower's in-role performance, citizenship behaviour and cynicism via relational identification. Moreover, LMXSC (LMXSC) moderates the direct and mediating relationship. Design/methodology/approach Based on multi-level (individual and group level) model, dyadic data were collected from 298 employees working under 47 group managers in the banking sector in Pakistan. Findings The multi-level moderated mediation model tested in Mplus and HLM software showed the full support for direct, mediating and moderating hypothesized relationships; however, the moderated mediation hypothesis was partially supported. It reveals that relative LMX standing of followers predicted in-role performance, organizational citizenship behaviour at an individual level (OCB-individual) and cynicism. Relational identification with the leader mediated the relationship. Moreover, at high LMXSC, the relationship between relative LMX and relational identification and consequently the outcomes were stronger. Originality/value LMX has widely been studied at dyadic level, despite the suggested high and low LMX quality relationships that exist in a workgroup. This study not only investigates the role of relative LMX on employee performance through relational identification but also reports that subjective evaluation of LMXSC plays a major role in promoting employee performance.