The Curvilinear Relation Between LMX Differentiation and Group Performance

The impact of leader-member exchange (LMX) differentiation on group performance has been considered ambiguous. To resolve this ambiguity, we theorized that LMX differentiation would have a curvilinear effect on group performance and that various types of group diversity would moderate this relationship. Results from 63 work groups in South Korean companies indicated that LMX differentiation had an inverted U-shaped relationship with group performance. Additionally, we found that gender diversity and age diversity negatively moderated the curvilinear relationship between LMX differentiation and group performance. However, the interaction between LMX differentiation and education level diversity was not significant.Implications, limitations, and directions for future research are discussed.