PERCEPTIONS OF AN INNOVATIVE CLIMATE - EXAMINING THE ROLE OF DIVISIONAL AFFILIATION, WORK GROUP-INTERACTION, AND LEADER SUBORDINATE EXCHANGE

Results from a cross-sectional field study with 198 members of an international chemical company suggest that divisional affiliation, work group interactions (WGX), and the quality of exchange between leader and subordinate (LMX) significantly predict employee perceptions of climate factors believed to foster innovative activities. Tests also indicate that LMX remains a significant predictor of five of the six climate variables measured, even after controlling for divisional affiliation and the quality of work group exchanges (WGX). Further, analyses reveal that the interaction between WGX and LMX accounts for significant and unique variance on all six of the climate factors studied in this investigation. Results are discussed in terms of their implications for managerial practice and future research.