Leader-member exchange and employee resilience: the mediating role of regulatory focus

Purpose - This study aims to investigate whether leader-subordinate exchange (LMX) quality influences subordinate resilience. Drawing upon Higgins' (1998) regulatory focus theory, it is hypothesized that high LMX leaders induce a positive appraisal of situations which primes promotion regulatory focus in subordinates which in turn increases employee motivation and resilience. Design/methodology/approach - The study uses a cross-sectional survey design. Responses were collected from 139 employees of three information technology and enabled services organizations in India. Data were analyzed using PLS-based structure equation modeling package ADANCO. Findings - LMX was found to be positively related to employee resilience. Promotion regulatory focus mediated the relationship between LMX and employee resilience. Originality/value - Previous studies have found different types of leadership styles to be associated with subordinate resilience. This suggests that there are certain factors across various leadership styles that influence resilience. The study uses LMX theory to suggest that it is not leadership style but underlying dimensions such as trust, reciprocity and clarity that play a vital role in cultivating employee resilience.