Disagreement in leader-follower dyadic exchanges: Shared relationship satisfaction and investment as antecedents

Leader–member exchange (LMX) has long been considered a relationship-based, dyadic model of leader–follower interactions. Recent reviews of this literature have, however, documented a paucity of research focusing on relationship-based antecedents and dyadic-level outcomes. In this study, we draw upon the relationship investment model to consider the effects of shared perceptions (or lack thereof) of relationship satisfaction and investment in the LMX relationship, from both the leader and follower's perspectives in predicting divergent perceptions of LMX (i.e., dyadic LMX disagreement). Using multi-source data obtained from managers and their subordinates working at 31 organizations, we test hypotheses using a specific form of multivariate multilevel regression (i.e., a one-with-many model). Our findings suggest that dyadic LMX disagreement is associated with differences in how leaders and followers weight the importance of satisfaction and investments in their relationship. Also, if leaders are overinvested or over-satisfied, we observe unique forms of disagreement in LMX ratings. Based on these results, we highlight implications for extending theory and research in LMX as well as work relationships. Practitioner points: Disagreements among leaders and subordinates regarding the quality of their relationship (i.e., not seeing eye to eye) can weaken the impact of subordinates’ efforts and reduce their engagement. Leaders and subordinates can more easily see eye to eye about their relationships by acknowledging the difference in importance they place on the previous investment they have made in the other person and discussing what each member of the pair is seeking to obtain from their relationship. It is more difficult for leaders and subordinates to see eye to eye about their relationships when leaders have invested more or are more satisfied than their subordinates.