Implications of cognitive and affective mechanisms for interpersonal exchange relationships in teams

In this study, we investigated the effect of leader-member exchange (LMX) on team-member exchange (TMX), and tested the meditation effects of social identification and positive affect in the relationships between LMX and TMX. Our sample comprised of 291 front-line employees working within local branches of an Australian banking organisation. Results showed that LMX was positively related to social identification, positive affect, and TMX. We found further that social identification and positive affect mediated relationships between LMX and TMX. Our findings suggest that employees enjoying high-quality LMX relationships tend to develop high-quality TMX relationships; and that this is because they socially identify with their work groups, and experience positive emotions in the relationships that strengthen their relationships with other team members