Leader Trust, Competence, LMX, and Member Performance: A Moderated Mediation Framework

Abstract

Based on social exchange theory, this study examines the influence of leaders' trusting behavior and competence in in-role activities on members' perceived leader-member exchange (LMX) relationships. Our study proposes that a leader's trust in a member contributes to the member's perceived LMX, and that the leader's competence in in-role activities moderates this relationship. Furthermore, our study suggests that perceived LMX mediates the relationship between the leader's trust and members' task performance. Finally, the study proposes that the leader's competence moderates the mediating role of LMX in transmitting the effect of the leader's trust on members' task performance. Analyses of the data collected from soldiers and platoon leaders in the South Korean army support these hypotheses.