Leader-Member Exchange as a Moderator of the Relationship Between Work Group Diversity and Team Performance

This study tests a moderator of the association between diversity and work group performance: leader-member exchange (LMX). The authors theorized performance effects associated with the differentiation and aggregate level of the dyadic LMX relationships in work groups and that the nature of these LMX effects would vary qualitatively as a function of work group diversity. The model was tested with a U.S. military operational simulation, including 224 high-ranking officers in 65 temporary work groups. Results indicate that LMX interacted with work group gender diversity, such that in more gender diverse groups LMX differentiation was positively associated with work group performance when aggregate LMX was high (above the median); among less gender diverse groups, LMX differentiation was not associated with performance when aggregate LMX was high, consistent with prior research. No effects of gender diversity were found among work groups reporting low aggregate LMX or with regard to group member functional background diversity.