||The Effect of Leader-Member Exchange on the Innovative Work Behavior
||The Effect of Leader-Member Exchange on the Innovative Work Behavior
||Institute of International Management (IIMBA--Master)
Innovative work behavior
Perceived distributive justice
The aims of this study are to investigate the affect of leader-member exchange on the innovative work behavior of the selected bank and university in Indonesia; to explore the relationship among leader-member exchange, trust, perceived organizational support and perceived distributive justice as well as innovative work behavior at the selected bank and university in Indonesia; and to investigate whether trust, perceived organizational support and perceived distributive justice are the mediating variables of the relationship between leader-member exchange and innovative work behavior or not. The respondents of this study are the officer of selected bank and university in Indonesia. Of 250 questionnaires, 200 return back and was used to do further analysis.
This empirical study found that the leader-member exchange was not positively significant associated with the trust, perceived organizational support as well as perceived distributive justice. Another finding of this research is that the trust and perceived distributive justice was not positively associated with the innovative work behavior, only perceived distributive justice was significant to contribute in predicting innovative work behavior. Finally, trust and perceived organizational support would not mediate the relationship between leader-member exchange and innovative work behavior, only perceived distributive justice would be mediating variable of the relationship between leader-member exchange and innovative work behavior and leader member exchange. In addition to these results, details of relationship among these variables were also discussed, including suggestion and implications.
TABLE OF CONTENTS IV
LIST OF TABLES VIII
LIST OF FIGURES X
CHAPTER ONE INTRODUCTION 1
1.1 Research Background. 1
1.2 Research Objectives and the Scope of the Study. 3
1.3 Research Procedures 4
1.4 Research Structure 5
CHAPTER TWO LITERATURE REVIEW 7
2.1 Definition of Construct. 7
2.1.1 Leader-Member Exchange. 7
2.1.2 Trust. 9
2.1.3 Perceived Organizational Support. 11
2.1.4 Perceived Distributive Justice. 13
2.1.5 Innovative Work Behavior. 13
2.2 Hypothesis Development. 15
2.2.1 The relationship between Leader-Member Exchange and Trust. 16
2.2.2 The relationship between Leader-Member Exchange and Perceived Organizational Support. 17
2.2.3 The relationship between Leader-Member Exchange and Perceived Distributive Justice. 18
2.2.4 The relationship between Trust and Innovative Work Behavior. 19
2.2.5 The relationship between Perceived Organizational Support and Innovative Work Behavior. 20
2.2.6 The relationship between Perceived Distributive Justice and Innovative Work Behavior. 21
2.2.7 Trust to the Relationship of Leader-Member Exchange and Innovative Work. 22
2.2.8 Perceived Organizational Support to the Relationship of Leader-Member Exchange and Innovative Work Behavior. 23
2.2.9 Perceived Distributive Justice to the Relationship of Leader-Member Exchange and Innovative Work Behavior 23
CHAPTER THREE RESEARCH DESIGN AND METHODOLOGY 25
3.1 The Conceptual Model. 25
3.2 The Construct Measurement Procedures. 25
3.2.1 Leader-Member Exchange 26
3.2.2 Trust 26
3.2.3 Perceived Organizational Support 27
3.2.4 Perceived Distributive Justice 28
3.2.5 Innovative Work Behavior 28
3.2.6 The Profile of the Respondent 29
3.5 Respondent 29
3.6 Data Analysis Procedures 29
3.6.1 Descriptive Statistic Analysis 29
3.6.2 Purification Statistics Analysis 30
3.6.3 One-Way Analysis of Variance 30
CHAPTER FOUR RESEARCH RESULTS 32
4.1 The Descriptive Analysis 32
4.1.1 Data Collection 32
4.1.2 Non-Response Bias 33
4.1.3 Characteristic 33
4.2 Confirmatory Factor Analysis (CFA) Procedures 34
4.2.1 CFA of Leader-Member Exchange. 36
4.2.2 Construct Validity of Leader-Member Exchange. 36
4.2.3 CFA of Trust 38
4.2.4 Construct Validity of Trust 38
4.2.5 CFA of Perceived Organizational Support 39
4.2.6 Construct Validity of Perceived organizational Support. 40
4.2.7 CFA of Perceived Distributive Justice 41
4.2.8 Construct Validity of Perceived Distributive Justice 42
4.2.9 CFA of Innovative Work Behavior 43
4.2.10 Construct Validity of Innovative Work Behavior 43
4.3 Regression Analysis of the Relationship between Leader-Member Exchange, Trust and Perceived Organizational Support 44
4.4 Regression Analysis of the Relationship between Leader-Member Exchange and Innovative Work Behavior 46
4.6 Mediating Role of the Trust as well as Perceived Organizational Justice and Perceived Distributive Justice on the Relationship between Leader-Member Exchange and Innovative Work Behavior 49
CHAPTER FIVE CONCLUSION AND SUGGESTIONS 52
5.1 Discussion and Research Conclusion 52
5.2. Research Contribution 55
5.3. Limitations and Suggestion for Future Research 56
Amabile, T. M. (1988). A model of creativity and innovation in organizations. In B. M. Staw & L. L. Cummings (Eds.). Research in organisation behavior 187-209.
Baron, R., & Kenny, D. (1986). The Moderator-Mediator Variable Distinction in Social Psychological
Research: Conceptual, Strategic, and Statistical Considerations. Journal of Personality and Social Psychology, 51(6), 1173-1182.
Basu, R., & Green, S. G. (1997). Leader-member exchange and transformational leadership: an empirical examination of innovative behaviors in leader-member dyads. Journal of Applied Social Psychology, 27, 477-499.
Blau, P. M. (1964). Exchange and power in social life. New York: Wiley.
Butler, J. (1991). Toward understanding and measuring conditions of trust: Evolution of a conditions of trust inventory. Journal of Management. 17(643–663).
Carlotte, & David. (1997). Meta-analytic review of leader-member exchange theory: Correlates and construct issues. Journal of Applied Psychology, 82, 827–844.
Carlotte Gerstner, & Day, D. V. (1997). Meta-analytic review of leader-member exchange theory: Correlates and construct issues. Journal of Applied Psychology, 82, 827–844.
Cashman, J., Dansereau, F., Graen, G., & Haga, W. J. (1976). Organizational understructure and leadership: A longitudinal investigation of the managerial role-making process. Organizational Behavior and Human Performance, 15, 278-296.
Clegg, C., Unsworth, K., Epitropaki, O., & Parker, G. (2002). Implicating trust in the innovation process. Journal of Occupational & Organizational Psychology, 75(4), 409-422.
Cook, J., & Wall, T. (1980). New work attitude measures of trust, organizational commitment and personal need non-fulfillment. Journal of Occupational Psychology, 53(1), 39-52.
Crouch, A., & Yetton, P. (1988). The management team: An equilibrium model of manager and subordinate performance and behavior.
Dansereau, F., Graen, G., & Haga, W. J. (1975). A vertical dyad approach to leadership within formal organizations. Organizational Behavior and Human Performance, 13, 46 78.
Deluga, R. R. (1994). The relationship between trust in the supervisor and subordinate organizational citizenship behavior. Military Psychology,
Dienesch, R. M., & Liden, R. C. (1986). Leader-member exchange model of leadership: A critique and further development. Academy of Management Review, 11, 618-634.
Dirks, K. T., & Ferrin, D. L. (2001). The role of trust in organizational settings. Organization Science, 12, 450–467.
Eden, D., & Shani, A. B. (1982). Pygmalion goes to boot camp: Expectancy, leadership, and trainee performance. Journal of Applied Psychology, 67, 194-199.
Eisenberger, R., & Debora, S. (1986). Perceived organizational support. Journal of Applied Psychology, 71, 500-507.
Eisenberger, R., Fasolo, P., & Davis-LaMastro, V. (1990). Perceived organizational support and employee diligence, commitment, and innovation. Journal of Applied Psychology 75, 51-59.
Eisenberger, R., Huntington, R., Hutchison, S., & Debora, S. (1986). Perceived Organizational Support. Journal of Applied Psychology, 71(3), 500-5007.
Gambetta, D. (1988). Can we trust? In D. Gambetta (Ed.), Trust: Making and breaking of cooperative relations, pp. 213–238,
Gouldner, A. W. (1960). The norm of reciprocity: A preliminary statement. American Sociological Review, 25, 161-178.
Graen, G. (1976). Role-making processes within complex organizations. In M. D. Dunnettc (Ed.). In H. o. i. a. o. psychology (Ed.) (pp. 1201-1245). Chicago: Rand McNally.
Graen, G., & Cashman, J. (1975). A role-making model of leadership in organizations: A development approach. In J. G. Hunt & L. L. Larson (Eds.). In Kent (Ed.), Leadership frontiers (pp. 143-165): OH: Kent State University Press.
Graen, G., & Scandura, T. A. (1987). Toward a psychology of dyadic organizing. In B. M. Staw & L. L. Cummings (Eds.). Research in organizational behavior 9, 175-208.
Hair Jr, J., Black, W., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2006). Multivariate data analysis (6 ed.). New Jersey: Prentice Hall.
Harris, M. J., & Rosenthal, R. (1985). Mediation of interpersonal expectancy effects: 31 metaanalyses. Psychological Bulletin, 97, 363-386.
Hirschman, A. O. (1970). Exit, voice, and loyalty: Responses to decline in firms, organizations, and states. Cambridge, M.A: Harvard University Press.
House, R. J., & Aditya, R. N. (1997). The social scientific study of leadership: Quo vadis? . Journal of Management, 23, 409-473.
House, R. J., & Javidan, M. (2004). Culture, leadership, and organizations: The GLOBE study of 62 societies. CA: Sage: Thousand Oaks.
Janssen, O. (2000). Job demands, perceptions of effort-reward fairness and innovative work behaviour. Journal of Occupational and Organizational Psychology, 73, 287-302.
Janssen, O. (2004). How fairness perceptions make innovative work behavior more or less stressful. Journal of Organizational Behavior, 25, 201-215.
Jones, G. R., & George, J. M. (1998). The experience and evolution of trust: Implications for cooperation and teamwork. Academy of Management Review, 23, 531–546.
Kanter, R. M. (1988). When a thousand flowers bloom: Structural, collective, and social conditions for innovation in organizations. In B. M. Staw 5c L. L. Cummings (Eds.). Research in organizational behavior, pp. 169-211,
Katz, D., & Kahn, R. L. S. (1978). The social psychology of organisations,
King, N., & Anderson, N. (2002). Managing innovation and change: a critical guide for organizations. London: Thomson.
Kopelman, R. E., Brief, A. P., & Guzzo, R. A. (1990). The role of climate and culture in productivity. In B. Schneider (Ed.). Organizational culture and climate,
Kottke, J. L., & Sharafinski, C. E. (1988). Measuring perceived supervisory and organizational support. Educational and Psychological Measurement, 48, 1075-1079.
Lewicki, R. J., & Bunker, B. B. (1996). Developing and maintaining trust in work relationships. In R. Kramer & T. Tyler (Eds.). Trust in organizations: Frontiers of theory and research, pp. 114-135,
Lewis, J. D., & Weigert, A. (1985). Trust as a social reality. Social Forces, 63, 967–985.
Liden, Wayne, & Stilwell. (1993). A longitudinal study on the early development of leader-member exchanges. Journal of Applied Psychology, 78, 662-674.
Liden, R., & Maslyn. (1998). Multidimensionality of leader-member exchange: an empirical assessment through scale development. Journal of Management, 24(1), 43-72.
Liden, R., Sparrowe, R., & Wayne, S. (1997). Leader-member exchange theory: The past and potential for the future. In G. R. Ferris (Ed.). Research in personnel and human resources management, pp. 47–119,
Malhotra, D., & Murnighan, J. K. (2002). The effect of contracts on interpersonal trust. Administrative Science Quarterly, 47, 534–559.
Mayer, R. C., Davis, J. H., & Schoorman, D. F. (1995). An integrative model of organizational trust. Academy of Management Review, 20, 709–734.
Moorman, R. H. (1991). Relationship between organizational justice and organizational citizenship behaviors : do fairness perceptions influence employee citizenship? Journal of applied psychology 6, 845-855.
Mumford, M. (2000). Managing creative people: strategies and tactics for innovation Human Resource Management Review(3), 313-351
Oldham, G. R., & Cummings, A. (1996). Employee creativity: Personal and contexual factor at work. Academy of Management Journal, 39, 607-634.
Organ, D. W. (1977). A reappraisal and reinterpretation of the satisfaction-causes-performance hypothesis. Academy of Management Review, 2(1), 46-53.
Organ, D. W. (1988). Organizational citizenship behavior: The good soldier syndrome. Lexington, MA: Lexington Books.
Perrone, V., Zaheer, A., & McEvily, B. (2003). Free to be trusted? 2007 Williams 619 Organizational constraints on trust in boundary spanners. Organization Science, 14(422–439).
Powell, W. W. (1990). Neither market nor hierarchy: Network forms of organization. Research in Organizational Behavior, 12, 295–336.
Randall, M. L., Cropanzano, R., Bormann, C. A., & Birjulin, A. (1994). The relationship of organizational politics and organizational support to employer attitudes and hehavior. Paper presented at the Paper presented at the annual meeting of the Academy of Management.
Ring, P. S., & Ven, A. H. V. d. (1994). Developmental processes of cooperative interorganizational relationships. Academy of Management Review, 19, 90–118.
Rousseau, D. M. (1990). New hire perceptions of their own and their employer's obligaUons: A study of psychological contracts. Journal of Organizational Behavior, 11, 369-100.
Rousseau, D. M., & Parks, M. L. J. (1993). The contracts of individuals and organizations. In L. L. Cummings & B. M. Staw (Eds.). Research in organizational behavior, pp. 1-3,
Saparito, P., Chen, C. C., & Sapienza, H. J. (2004). The role of relational trust in bank–small firm relationships. Academy of Management Journal, 47, 400–410.
Sbore, L. M., & Tetrick, L. E. (1991). A construct validity study of the Survey of Perceived Organizational Support. Journal of Applied Psychology, 76, 637-643.
Schriesheim, C. A., Castro, S. L., & Cogliser, C. C. (1999). Leader-member exchange (LMX) research: A comprehensive review of theory, measurement, and data-analytic practices. Leadership Quarterly, 10, 63-114.
Scott, S. G., & Bruce, R. A. (1994a). Determinants of innovative behavior: a parth model of individual innovation in the workplace. Academy of Management Journal, 37(3), 580-607.
Scott, S. G., & Bruce, R. A. (1998). Following the leader in R&D: the joint effect of subordinate problem-solving style and leader-member relations on innovative behaviour. IEEE Transactions on Engineering Management, 45, 3-10.
Settoon, R. P., Bennett, N., & Liden, R. C. (1996). Social exchange in organizations: Perceived organizational support, leader-member exchange, and employee reciprocity. Journal of Applied Psychology, 81, 219-227.
Shalley, C. E. (1995). Effects of coactions, expected evaluation, and goal setting on creativity and productivity. Academy of Management Journal, 38, 483-503.
Shore, L. M. F., & Tetrick, L. E. (1994). The psychological contrast as an explanatory framework in the employment relationship. In C. Cooper & D. Rousseau (Eds.). Trends in organizational behavior, pp. 91-109,
Siegel, S. M., & Kaemmerer, W. F. (1978). Measuring the perceived support for innovation in organizations. Journal of Applied Psychology, 63(5), 553-562.
Sparrowe, R. T., & Liden, R. C. (1997). Process and Structure in Leader-Member Exchange. The Academy of Management Review, 22(2), 522-552.
Stogdill, R. M. (1974). Handbook of leadership: A survey of theory and research.
Tetrick, L. E., Shore, L. M. F., & Miles, R. L. (1994). Sources of perceived organizational support: Social support and human resources practices. In D. Wayne State University (Ed.): Unpublisbed manuscript.
Uhl-Bien, M., Graen, G., & Scandura, T. A. (2000). Implications of leader-member exchange (LMX) for strategic human resource management systems: Relationship as social capital for competitive advantage. In G. R. Ferris (Ed.), Research in personnel and human resource management. 18, 137-185.
Uzzi, B. (1997). Social structure and competition in interfirm networks: The paradox of embeddedness. Administrative Science Quarterly, 42, 35–67.
Ven, A. H. V. d. (1986). Central problems in the management of innovation. Management Sciente, 32, 590-607.
West, M. A., & Farr, J. L. (1989). Innovation at work: Psychological perspective. Social Behavior, 4, 15-30.
Whitener, E. M., Brodt, S., Korsgaard, A., & Werner, J. M. (1998). Managers as initiators of trust: An exchange relationship framework for understanding managerial trustworthy behavior. Academy of Management Review, 23, 513–530.
Williams, M. (2001). In whom we trust: Social group membership as an affective context for trust development. Academy of Management Review, 26, 377–396.
Woodman, R. W., Sawyer, J. E., & Griffin, R. W. (1993). Toward a theory of organizational creativity. Academy of Management Review, 18, 293-321.
Yukl, G. (1994). Perspectives on effective leadership behavior. In Leadership in Organizations (3rd ed., pp. 53-79). Englewood Cliffs: NJ: Prentice Hall.
Zaheer, A., McEvily, B., & Perrone, V. (1998). Does trust matter? Exploring the effects of interorganizational and interpersonal trust on performance. Organization Science, 9, 1–20.
Zand, D. E. (1972). Trust and managerial problem solving. Administrative Science Quarterly, 17, 229–239.
Zhou, J., & George, J. M. (2001). When job dissatisfaction leads to creativity: encouraging the expression of voice. Academy of Management Journal, 44(4), 682-696.