Relationship building in empowering leadership processes: A test of mediation and moderation

Abstract

AbstractThe direct positive relationship between empowering leadership and subordinate empowerment is well established. However, leader–member exchange (LMX) research, which concerns a leader’s relationship-building with subordinates in a work unit, suggests that the direct leader empowering–subordinate empowerment association may be more complex than understood in the current literature. Accordingly, this study examined LMX theory-based mediation and moderation processes occurring between empowering leadership and subordinate empowerment. In a field study employing 132 administrative workers in 26 work groups, as expected, an individual subordinate’s perceived LMX mediated the positive effects of empowering leadership on the subordinate’s psychological empowerment. In addition, LMX differentiation cross-level moderated the linkage between empowering leadership and perceived LMX. Together, study findings suggest that subordinates’ perceived LMX in a dyadic relationship with a leader and in a work group needs to be carefully considered in empowering leadership processes.