Leader-member exchange (LMX) and innovation climate: the role of LMX differentiation.

Leader-member Exchange (LMX) theory has been shown to be one of the most compelling theories for understanding the effects of leadership on organizational behavior. This theory proposes that leaders establish differentiated relationships with each of their subordinates according to the exchanges produced between them. Recently, the concept of LMX differentiation has been introduced into the theory to extend research from the dyadic to the group level. The present paper uses a longitudinal design to analyze the moderator role of LMX differentiation in the relationship between mean LMX and innovation climate in a sample of 24 healthcare teams. The results showed no direct effects of mean LMX on changes in innovation climate over time. However, they provide support for the moderator effect of LMX differentiation in this relationship, as it was stronger when LMX differentiation was low than when it was high.