A Multilevel Analysis of Leader-member Exchange (LMX) and Leader-member Guanxi (LMG) in the Chinese Hospitality Industry

Abstract

This research adopts a quantitative method to investigate the supervisor-subordinate relationship and how it affects staff performance in Chinese hospitality industry from a multi-level perspective. An indigenous construct, leader-member guanxi (LMG) which identifies supervisor-subordinate personal relationship is applied and compared to leadermember work relationship (LMX) originated from social exchange theory. The differentiation of LMX and LMG is also analysed and its dual effect on subordinates’ job satisfaction, service oriented organisational citizenship behaviour, and team cohesion is discussed with practical implications for the managers in the hospitality industry.