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Economy & Business, Volume 8, 2014

THE EFFECT OF LEADER-MEMBER EXCHANGE ON ORGANIZATIONAL INNOVATIVENESS: FINDINGS FROM A LITHUANIAN PUBLIC SECTOR ORGANIZATION
Raminta Pučėtaitė, Aurelija Novelskaitė
Pages: 159-171
Published: 29 Aug 2014
Views: 1903
Downloads: 727
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
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