The Impact of Leader-Member Exchange on Job Performance: Exploring the Psychological Influence of Employee Self-Fulfilling Prophecy

Che-chang Cheng () and Tsang-kai Hung
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Che-chang Cheng: National Changhua University of Education, Graduate Institute of Human Resource Management
Tsang-kai Hung: National Changhua University of Education, Graduate Institute of Human Resource Management

A chapter in Proceedings of the 13th International Conference on Business, Accounting, Finance and Economics (BAFE 2025), 2025, pp 244-254 from Springer

Abstract: Abstract Over the past few decades, the impact of Leader-Member Exchange (LMX) on job performance has been widely confirmed. However, most studies focus on the leader’s perspective or simple dyadic interactions, lacking a systematic discussion of the role of members’ internal psychological processes, particularly the key moderating role of “self-fulfilling prophecy” (SFP) in this relationship. This research gap limits our understanding of the deep-seated mechanisms through which LMX influences performance. This study aims to integrate LMX theory and self-fulfilling prophecy theory to construct a moderating effect model, exploring how employees’ positive and negative self-expectations strengthen or weaken the positive correlation between LMX and job performance. It also investigates whether the impact of the leader-member exchange relationship on performance varies due to differences in members’ personality traits. Adopting the perspective of self-fulfilling prophecy, this study introduces this theoretical concept into the field of management research. The expected research findings will bridge the gap between the two major research fields of “leader-member” interaction and “member internal psychology,” providing more nuanced insights for organizational management practices. It emphasizes that while establishing high-quality LMX, intervention measures to cultivate employees’ positive self-expectations (such as coaching leadership and growth mindset training) are essential for maximizing job performance.

Keywords: Leader-Member Exchange; Job Performance; Self-Fulfilling Prophecy; Moderating Effect; Internal Psychological Process (search for similar items in EconPapers)
Date: 2025
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DOI: 10.2991/978-94-6463-968-1_18

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