Examining the Mediating Role of Empowerment in the Relationship Between LMX and Task and Contextual Performance in Dutch Organizations

Abstract

This study investigated the relationships between LMX and task and contextual performance and the mediating role of empowerment on these relationships by means of an online survey study. LMX relationships with performance outcomes are proposed, as LMX theory asserts that supervisors tend to provide more resources and support to subordinates in high-quality LMX relationships. A mediating effect of empowerment was expected because supervisors can influence the level of empowerment of subordinates. Dyads of 96 subordinates and their immediate supervisors were used to test the hypotheses. The model 3 of the 8 proposed mediation models were supported. Specifically, empowerment mediated the relationships between predictor subordinate-rated LMX and outcome variables subordinate-rated task and contextual performance and supervisor-rated contextual performance. Unexpectedly, empowerment had a negative indirect effect on supervisor-rated contextual performance. Furthermore and contrary to predictions, supervisor-rated LMX relationships with outcome variables were not mediated by empowerment. Rather, supervisor-rated LMX was a strong predictor of performance outcomes rated by the supervisor. A suggestion for future research would be to replicate the current study with a bigger sample size, consisting of more and bigger teams.