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A multilevel investigation of leader–member exchange differentiation’s consequences: A moral disengagement perspective

Not yet classifiedby Amer Ali Al-Atwi, Elham Alshaibani, Ali Bakir, Haneen M. Shoaib, Mohanad DahlanSeptember 15, 2022 56 min read
leader-member exchange lmx differentiation moral disengagement team dynamics deviant behaviour frontline employees customer service ethics at work multilevel research leadership

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Editorial verdict

Methodologically solid academic study with meaningful theoretical contributions, but cross-sectional design and single-sector sample limit causal claims — treat findings as directional rather than definitive.

Executive summary

This study examines how leader-member exchange (LMX) differentiation — the degree to which leaders treat team members differently — influences customer-oriented deviant behaviors among frontline employees, using team moral disengagement as a mediating mechanism. The authors argue that LMX differentiation's effects are not uniform but depend critically on the basis of differentiation: performance-based differentiation (perceived as legitimate) reduces team moral disengagement, while personal liking-based differentiation (perceived as illegitimate) increases it. Drawing on moral disengagement theory and social hierarchy theory, the study employs multilevel data from 289 frontline banking employees across 76 service teams. Confirmatory factor analysis and multilevel modelling support a six-factor measurement model. Results indicate that LMX differentiation alone does not predict moral disengagement or deviance; rather, the performance basis and personal liking basis moderate these relationships. Team moral disengagement significantly predicts both customer-oriented destructive deviance (CODD) and constructive deviance (COCD). The study partially supports moderated mediation hypotheses, with differentiation basis moderating indirect effects on CODD but not consistently on COCD. The authors acknowledge limitations including cross-sectional design, single-sector sampling, and an oversimplified standard deviation measure of LMX differentiation.

researchRelevance: 6/10Asia-Pacific

Key insights

  • 1LMX differentiation alone does not predict team moral disengagement or deviant behavior — the basis on which leaders differentiate (performance vs. personal liking) is the critical moderating factor.
  • 2LMX differentiation was associated with lower team moral disengagement when the performance basis was high or the personal liking basis was low; when the personal liking basis was high the link was positive but not significant. Fairness was part of the authors' reasoning but was not measured.
  • 3Team moral disengagement predicted both customer-oriented destructive deviance (CODD) and constructive deviance (COCD), but it carried the effect of LMX differentiation conditions to CODD only, not to COCD, extending moral disengagement theory to collective and customer-directed outcomes.

Practical takeaways

  • Differential treatment of team members by leaders is not inherently harmful; the perceived legitimacy of the basis for that differentiation — whether tied to measurable performance or personal favoritism — shapes downstream ethical and behavioral outcomes.
  • Transparency and consistency in applying performance criteria when allocating differentiated leader attention, resources, or opportunities may reduce the likelihood of morally disengaged team cognition and associated deviant behavior toward customers.

Frameworks mentioned

Leader-Member Exchange (LMX)

A relational leadership theory positing that leaders develop differentiated dyadic relationships with individual team members, varying in quality, trust, and mutual obligation.

LMX-7 Scale

A seven-item validated instrument developed by Graen and Uhl-Bien (1995) to measure the quality of leader-member exchange relationships.

References

  1. Bandura (1999).Moral disengagement in the perpetration of inhumanities.
  2. Bandura (1986).Social foundations of thought and action.
  3. Graen & Uhl-Bien (1995).LMX-7 Scale.
  4. Henderson et al. (2009).LMX differentiation and group outcomes.
  5. Han et al. (2021).LMX differentiation and social undermining.
  6. Seo et al. (2018).LMX configurations and team performance.
  7. Sui et al. (2015).LMX differentiation and team coordination.
  8. Spector & Fox (2005).Counterproductive work behavior.
  9. Scandura (1999).Organizational justice and LMX.
  10. Tyler (2006).Legitimacy theory.
  11. Bliese (2000).Multilevel analysis methods.

Source & Provenance

Numbers checked
Publisher / Source

Not specified

Author

Amer Ali Al-Atwi, Elham Alshaibani, Ali Bakir, Haneen M. Shoaib, Mohanad Dahlan

Publication Date

September 15, 2022

Article Type

Research Study

Geography

Asia-Pacific

Content Type
Unknown Source Type
Original Source

Original source metadata is preserved. AI analysis is generated separately.

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