Effect of Leader–Member Exchange on Proactive Employee Behavior and Employee Performance: The Moderating Role of Innovative Climate

Abstract

This study aims to investigate the mechanisms and regulatory processes underlying the relationship between leader–member exchange and employee performance. Social exchange theory and self-determination theory argue that proactive employee behavior has an intermediary effect on the relationship between leader–member exchange and employee performance. In addition, it is predicted that the innovative climate will regulate this indirect effect. Data were collected via questionnaire from 266 people working in organizations operating in various sectors located in Gebze and Istanbul using a survey method. Data analysis was conducted using structural equation modeling (SEM) and PROCESS macro. According to the findings, the hypothesis that leader–member exchange is positively related to employee performance and that proactive employee behavior mediates this relationship is supported. In addition, an innovative climate regulates the positive relationship between leader–member exchange and proactive employee behavior, deepening the theoretical understanding of the consequences of this interaction.