THE EFFECT OF LEADER-MEMBER EXCHANGE ON ORGANIZATIONAL INNOVATIVENESS: FINDINGS FROM A LITHUANIAN PUBLIC SECTOR ORGANIZATION

Raminta Pučėtaitė and Aurelija Novelskaitė

Economy & Business Journal, 2014, vol. 8, issue 1, 159-171

Abstract: The paper investigates the impact of the quality of the relationships between leader and followers or leader-member exchange (LMX) on five dimensions of organizational innovativeness such as product, market, process, behaviour and strategy. The empirical findings were obtained by a survey (n=757) in a public sector organization in Lithuania, where autocratic relationships between leader and followers may be still a tendency due to socio-historical reasons. The findings of a series of regression analysis indicate that, in general, LMX has a comapratively low although statistically significant explanatory power, but for behaviour innovativeness. Regression analysis of the split sample to test the relation between a perceived low, medium and high quality of relationships between leader and followers has yielded no consistent difference in the effect of differentiated LMX levels on organizational innovativeness.

Keywords: leadership; leader-member exchange; organizational innovativeness; lithuania; public organizations (search for similar items in EconPapers)
JEL-codes: A (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:isp:journl:v:8:y:2014:i:1:p:159-171

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