Leader–member exchange in teams: An examination of the interaction between relationship differentiation and mean LMX in explaining team-level outcomes

The purpose of this study was to examine the interaction between mean level of LMX and the differentiation of LMX relationships within a team to explain team potency and team conflict. Hypotheses were tested in a team-based organization, the Canadian Forces. Soldiers (N = 162), who were members of 35 military teams, completed questionnaires assessing the different variables. All analyses were conducted at the team level. As expected, mean LMX within teams was positively related to team potency and negatively related to team conflict. Furthermore, mean LMX interacted with relationship differentiation within teams to explain team potency and team conflict. The results are discussed in terms of their implications for LMX theory and leadership practice.