The ties that bind: The impact of leader-member exchange, transformational and transactional leadership, and distance on predicting follower performance.

Abstract

The authors examined the linkages between leader-member exchange (LMX), transformational and transactional leadership, and physical distance in predicting performance of 317 followers over a 1-year period. Results from a partial least squares analysis revealed that LMX was related positively to transformatio nal and contingent reward leadership and negatively to management-by -exception. LMX and active management-by-exception positively predicted follower performance, and physical distance moderated leadership-performance relationships. Transformational leadership produced significantly higher follower performance in close versus distant situations, whereas LMX produced high follower performance irrespective of physical distance between leaders and followers. Interest in leadership in complex organizations is characterized by the parallel development of two different perspectives. One viewpoint is leader-focused. This stream of research attempts to explain individual, group, or organizational performance outcomes by analyzing specific leader behaviors and linking them directly to those outcomes. Examples of such perspectives include transformational, charismatic, and value-based theories of leadership, as developed by Bass (1985), House (1977), and House, Delbecq, and Taris (1996), respectively. In contrast, the second perspective focuses on the explicit one-on-one relationships that develop between leader and follower. Adherents of this perspective propose a link between follower performance and the quality and level of mutual trust, respect, and influence within those individual leader-follower relationships. The best example of this perspective is the leadermember exchange (LMX) theory of leadership originated

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