Relational Dynamics of Leadership: Problems and Prospects

Relationships are central to understanding what occurs in the workplace. The leader-member exchange (LMX) approach dominates the literature on relational dynamics of leadership. Research supports LMX as a mediator between leadership and outcomes, and this reflects the centrality of relationships at work. However, LMX is not a leadership theory. We critically review the literature on LMX, with discussion of the requirements for "good" theory and how LMX falls short. We acknowledge some attempts through the years to develop theory to guide LMX research. The concept of "exchange" was not original to LMX. Our review of social exchange theory reveals that, contrary to the common approach, LMX is not consonant with exchange theory. Other attempts at theory offer partial explanations that do not capture leader-member relational dynamics. Some promising approaches to studying leader-member relationships have emerged in recent years. We offer suggestions for future theory and research and advocate for a return to role theory and the development of emotional sociocognitive approaches.