A multilevel study of group-focused and individual-focused transformational leadership, social exchange relationships, and performance in teams

Abstract

Using matched reports from 73 team leaders and 359 of their members across 23 companies in Korea, we examined a multilevel model where group-and individual-focused transformational leadership and their influence processes operate at the team and dyadic levels independently and interactively to be associated with team and member performance. Results indicated that group-focused transformational leadership was positively associated with team performance through team member exchange (TMX), whereas individual-focused transformational leadership positively related to team members' in-role and extra-role performance through leader-member exchange (LMX). TMX not only positively mediated the relationships between group-focused transformational leadership and member performance after controlling for LMX but also positively moderated LMX-performance relationships. Moreover, the indirect effect of individual-focused transformational leadership through LMX on member performance was contingent upon the level of TMX. Theoretical and applied implications are discussed. Copyright (c) 2015 John Wiley & Sons, Ltd.