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Running head: LMX TO PERFORMANCE AND TURNOVER
In press, Journal of Applied Psychology
A Longitudinal Study of the Moderating Role of Extraversion:
LMX, Performance, and Turnover during New Executive Development
Talya N. Bauer
Berrin Erdogan
Portland State University
Robert C. Liden
Sandy J. Wayne
University of Illinois at Chicago
Author Notes
We want to thank Murray Barrick, Jeanne Enders, Carl Maertz, and Donald Truxillo for
their helpful comments on earlier drafts of this paper. An earlier version of this paper
was presented at the 2004 Academy of Management meeting in New Orleans, LA. This
research was funded by a Research Grant from the Society of Human Resource
Management (SHRM) Foundation and the University of Illinois’s Center for Human
Resource Management (CHRM).
LMX to Performance and Turnover 1
A Longitudinal Study of the Moderating Role of Extraversion:
LMX, Performance, and Turnover during New Executive Development
Abstract
Identifying factors that help or hinder new executives to “get up to speed” quickly and
remain with the organization is vital to maximizing the effectiveness of executive
development. The current study extends past research by examining extraversion as a
moderator of leader-member exchange (LMX) to performance, turnover intentions, and
actual turnover relationships for an executive sample. The sample consisted of 116 new
executives who were surveyed prior to starting their employment as well as three months
post-entry. A total of 67 senior executives rated these new executives in terms of overall
performance at six months post-entry. Turnover data were gathered from company
records 3 1/2 years later. Hierarchical regression results showed that LMX was not
related to performance or turnover intentions for those high in extraversion, but for
individuals low in extraversion, there was a relation between LMX, performance, and
turnover intentions. Furthermore, survival analyses showed that LMX was only related to
turnover hazard rate for individuals low in extraversion.
LMX to Performance and Turnover 2
A Longitudinal Study of the Moderating Role of Extraversion:
LMX, Performance, and Turnover during New Executive Development
Executives are among the highest paid workers in the United States, and they
occupy high-level jobs within organizations with over 3 million of them working at the
turn of the century (Bureau of Labor Statistics, 2000). Organizations spend considerable
time, money, and effort to transform executives into productive assets. Research has
shown that the cost of losing executive talent is high. For example, Overton (2001)
estimated that the direct and indirect costs of replacing an executive amount to more than
their annual salary, and has been estimated to be $500,000 per lost executive (McCall,
Lombardo, & Morrison, 1988). In addition to replacement costs, losing top talent can also
result in the loss of competitive industry secrets. This is especially true for Fortune 500
organizations, which tend to hire employees from competing Fortune 500 firms
(Williamson & Cable, 2003).
Executives hold powerful and prestigious positions and are key organizational
members who have the ability to shape and influence decisions regarding a variety of
important factors. But coupled with these seemingly positive aspects of executive jobs is
the pressure put on them to perform well and to do so quickly (McCall et al., 1988).
Identifying factors such as personality characteristics and insider support that may help or
hinder new executives in “getting up to speed” is vital to maximizing the effectiveness of
new executives and retaining them (McCall et al., 1988).
The literature on new employee socialization may be useful in understanding how
executives adjust to their new roles. Research on socialization shows that establishing
effective working relationships with leaders early on is a key way that new employees
LMX to Performance and Turnover 3
can successfully integrate into their organizations (e.g., Bauer & Green, 1998;
Kammeyer-Mueller & Wanberg, 2003; Major, Kozlowski, Chao, & Gardner, 1995).
Similarly, the executive development literature has established the importance of
developing relationships (Mainiero, 1994), finding mentors (Lyness & Thompson, 2000;
McCall et al., 1988), and receiving top management support (McCauley, Ruderman,
Ohlott, & Morrow, 1994) for executive success. Therefore, examining relationship
development with new executives and their superiors may increase our understanding of
new executive success in terms of enhancing performance and avoiding organizational
withdrawal.
One theory that examines the relationship quality between superiors and
subordinates is leader-member exchange (LMX). A distinctive feature of this approach
to leadership is its focus on the dyadic level of leadership. Rather than thinking about a
leader as having one set style, LMX theory proposes that leaders form unique
relationships with each of their subordinates so that high LMX employees receive greater
growth opportunities (Graen & Scandura, 1987) and higher levels of support (Kraimer,
Wayne, & Jaworski, 2001). Theorists posit that social networks are important to
organizational members (Brass, Butterfield, & Skaggs, 1998). More specifically to
LMX, Sparrowe and Liden contended (1997) and empirically verified (2003) that high
LMX employees are more readily integrated into the leader’s personal network. These
researchers discovered that being incorporated into the leader’s set of trusted contacts
was related to focal members being perceived by others as influential players in the
organization. Paralleling these results, Seibert, Kraimer, and Liden (2001) found that
establishing a social network (including contacts in different functional areas) was related
LMX to Performance and Turnover 4
to the procurement of resources and information and ultimately to career success. Given
that executives tend to be charged with making high profile decisions that require access
to a wide variety of information as well as being charged with the responsibility of
executing tasks that demand access to resources, establishing oneself as an influential
member of a far-reaching social network may be especially critical for individuals
holding executive positions. Thus, we expect the relationship that new executives are able
to form with their superiors to be a salient factor in the executive development process.
To date, the executive development literature has not incorporated the findings of
LMX theory. Similarly, the LMX literature has typically not examined employees who
hold high-level positions. Therefore, our main objective in this study is to integrate these
literatures by exploring the role of LMX in the new executive development process as
measured by executive performance and withdrawal. Furthermore, we contend that the
importance of high-quality LMXs will be contingent on the personality of new
executives. We propose that introverted executives, individuals who are less inclined to
seek social attention (Ashton, Lee, & Paunonen, 2002), will benefit more from forming
high-quality relationships than their more extraverted counterparts.
Our study makes three contributions to the literature. First, we contribute to the
executive development literature by examining how performance and withdrawal are
influenced by the interaction between executive personality and the unique relationships
that form between new executives and their immediate superiors. This is especially
important as the executive development literature has primarily focused on gender as a
key individual difference (e.g., Lyness & Thompson, 2000; McCauley et al., 1994), but
has not examined how executives with different personalities adjust to their new roles.
LMX to Performance and Turnover 5
Second, we make a contribution to the LMX literature by introducing a potential
moderator of LMX to outcome relations. Several LMX researchers have expressed
concern that LMX studies have adopted a universalistic perspective that has resulted in a
dearth of knowledge on the circumstances that make LMX more or less important for
executive success (e.g., Erdogan & Liden, 2002; Schriesheim, Castro, & Yammarino,
2000; Vecchio, Griffeth, & Hom,1986).
Finally, our third contribution is a re-examination of the LMX to actual turnover
relationship while employing methodological advancements in the turnover literature.
Although a number of studies have revealed non-significant relationships between LMX
and turnover, researchers have called for additional studies that examine moderators
(Gerstner & Day, 1997), are conducted with high-level employees (Vecchio, 1995), and
employ longitudinal designs (Singer & Willett, 1991) to further test the relationship
between LMX and actual turnover. We address these calls for further examination by
using survival analysis, examining a new moderator, extraversion, and studying a high-
level executive sample across time.
Hypotheses
Executive Performance
One of the main goals for new executives is to adjust to their new jobs in order to
perform well. LMX is associated with better role adjustment in terms of performance, as
research has consistently found that LMX and performance are related across a wide-
range of jobs (Gerstner & Day, 1997). For example, in a cross-sectional study
Masterson, Lewis, Goldman, and Taylor (2000) found that, in their sample of university
employees with an average tenure of seven years, performance was related to LMX.
LMX to Performance and Turnover 6
Similarly, Wayne, Shore, and Liden (1997) studied employees with at least five years of
work experience and found a positive relationship between LMX and performance.
Settoon, Bennett, and Liden (1996) discovered that LMX and performance were related
in their sample of hospital employees with approximately six years of tenure. For their
sample of expatriates, Kraimer et al. (2001) found a similar relationship. In one of the
few studies of new employees that included performance as an outcome, Bauer and
Green (1996) studied new college graduates and found that LMX and performance were
related at two months on the job as well as nine months on the job.
LMX researchers have posited several mechanisms relating LMX to performance.
For example, new employees need information to do their jobs and to gain clarity for role
expectations (Bauer et al., 1998). Indeed, the literature shows a strong relationship
between LMX and role clarity, perhaps because individuals in high LMX relationships
interact more frequently with their leaders (Kramer, 1995). Further, high LMX members
often enjoy more challenging assignments, sponsorship, and greater access to information
relevant to the job (Graen & Scandura, 1987).
While the existing literature shows a relationship between LMX and job
performance, to date, no study has examined this relationship in an executive sample
where “who you know” can be as important as “what you know” (Burke, 1984). Having a
strong LMX relationship should help with these dimensions of executive performance,
which are often ambiguous and high profile. Research shows that developing
relationships is key to advancing to executive positions (Mainiero, 1994; Ragins,
Townsend, & Mattis, 1998). Lyness and Thompson (2000) found that mentoring was
related to executive success even after controlling for tenure, gender, age, education, and
LMX to Performance and Turnover 7
human capital. Further, interviews with executives show that their superiors are key in
helping them to understand management values and to navigate the politics of the
organization (McCall et al., 1988). McCauley et al. (1994) found that major areas of
learning for executives experiencing job transitions included having higher responsibility
and visibility, and dealing with nonauthority relationships to get their jobs done.
Following findings from the LMX and executive development literatures, forming
high LMX relationships should help new executives deal with job transitions, garner
greater responsibility, learn insider information, and overcome obstacles. All of these
factors should enhance new executive job performance. Therefore, we first examine
whether the previously established relationship holds true with this sample of new, high-
level executives.
Hypothesis 1: LMX is positively related to new executives’ job performance as
rated by their supervisors.
Executive Turnover Intentions
Only a handful of studies have examined LMX and turnover intentions. Despite the
small number of studies of this relationship, meta-analytic results have found an overall
negative relationship between LMX and turnover intentions (Gerstner & Day, 1997). The
socialization literature has also examined interpersonal interaction and turnover
intentions. For example, relationship building was found to influence turnover intentions
across three-waves of data collection (Kammeyer-Mueller & Wanberg, 2003). This study
provides preliminary evidence for the salience of leaders as key socializing agents, but
none of these studies examined new executive employees.
LMX to Performance and Turnover 8
Executives who are able to form high LMX relationships should become more
attached to their workplace as they feel more supported (Kacmar, Carlson, & Brymer,
1999; Liden, Wayne, & Sparrowe, 2000; Schriesheim et al., 2000), receive more
feedback from their superiors (Kramer, 1995), and belong to a network at work
(Sparrowe & Liden, 2003). On-the-job embeddedness refers to employees being situated
or connected in a social web at work that creates a disinclination to consider leaving as
the cost of turnover increases (Lee et al., 2004). If executives do not want to lose valued
relationships with their superiors, they are more psychologically attached to the
organization and should have lower turnover intentions (Maertz & Campion, 1988).
Hypothesis 2: LMX is negatively related to new executive turnover intentions.
Executive Turnover
Although it is clear that LMX is negatively related to turnover intentions, research
on LMX and actual turnover has tended to show mixed results, with results from a meta-
analysis indicating that no relationship exists (Gerstner & Day, 1997). However, we
propose that the same mechanisms that link turnover intentions with LMX will operate
for actual turnover as well.
We revisited the relation between LMX and actual turnover for several reasons.
First, relatively few studies of LMX have examined turnover, and none of these to our
knowledge have been conducted with a sample of executives. Indeed, we expect that
factors that relate to executive turnover will be related, at least partially, to the ability of
new executives to learn from their leaders (e.g., McCall et al., 1988; McCauley et al.,
1994). Although Ferris (1985) replicated the findings of Graen, Liden, and Hoel (1982)
for LMX relating to actual turnover, Vecchio (1985) was unable to replicate these results
LMX to Performance and Turnover 9
in his sample of bank tellers. He noted, however, that “…the leader-member exchange
approach has potentially greater predictive utility for turnover among high-level
employees than among low-level employees” (p. 483). Consistent with this speculation,
the sample in the Graen et al. (1982) research, which found a strong negative correlation
between LMX and turnover, consisted of highly educated computer and systems analysts.
Second, there are characteristics associated with executives that provide support for
the relation between LMX and turnover. In a study of the predictors of executive career
success, Judge, Cable, Boudreau, and Bretz (1995) found that higher-level executives
were more “promotion motivated” than lower-level executives, despite the more limited
prospective promotion opportunities given their high level in the organization.
Furthermore, they found job tenure negatively predicted number of promotions. These
findings suggest that high-level executives tend to be very ambitious and desiring of
promotions. As a result, they may be less likely to tolerate a low LMX relationship with
their superior as this person typically has a significant impact on promotion decisions.
Furthermore, it seems that executives may have many alternative job opportunities given
the “war” for executive talent (Michaels, Handfield-Jones, & Axelrod, 2001). Thus, the
LMX relationship between new executives and their immediate superiors may be
especially salient with respect to turnover.
Additionally, Gerstner and Day concluded that the relationship between LMX and
actual turnover is worthy of further examination and Vecchio et al. (1986) indicated that
the search for this relationship should not be abandoned. Finally, research since Gerstner
and Day’s meta-analysis has found some support for the importance of leadership. For
example, Kammeyer-Mueller and Wanberg (2003) compared different socializing
LMX to Performance and Turnover 10
influences and found that across seven different organizations, leader influence was the
only socializing agent that was related to actual turnover.
If new executives have low LMX relationships, they may not fit into the
organization and are likely to have an unfavorable work situation that would motivate job
search behaviors and cause them to leave more rapidly. High LMX may create a sense of
patience not to “rush out the door” and an obligation to one’s manager that might
lengthen tenure. Thus, in both cases LMX would be related to duration of stay as well as
turnover.
In terms of the methods used when studying actual turnover, Singer and Willett
(1991) note that turnover research should be longitudinal, allow sufficient time for
turnover to take place, utilize survival analysis to analyze predictors of turnover, and
capture turnover in terms of days stayed rather than simply as a dichotomous
“stayed/left” variable. The use of survival analysis utilizes the information regarding
when turnover occurred in addition to whether or not it occurred. Therefore, it provides a
richer understanding of the process by which employees leave the organization. For
example, over a three-year period, all subjects could have left the organization. However,
from the organization’s perspective as well as theoretically, there is a difference between
an executive who leaves after staying for three months, and someone who leaves after
staying 2.5 years. Even if both individuals would have turned over by the end of our
study, it makes theoretical sense to utilize information regarding how long individuals
stayed. In fact, Morita, Lee, and Mowday (1993) demonstrated that survival analysis and
logistic regression may give contradictory findings and the use of survival analysis
LMX to Performance and Turnover 11
provides a more accurate method of estimating relations between turnover and other
variables.
All of the published studies of LMX and turnover utilized logistic regression
procedures (e.g., Ferris, 1985; Graen et al., 1982; Vecchio, 1985; Vecchio et al., 1986).
Logistic regression is appropriate for examining predictors of turnover. However, it
discards information regarding how long individuals stayed before leaving. Utilizing this
information may reveal that even though LMX may not be related to whether individuals
left or stayed, those with high LMX may stay for longer periods of time before they
leave. One goal of this study was to build on past research and to examine the LMX to
actual turnover relationship following the recommendations of Singer and Willett (1991).
Hypothesis 3: LMX is negatively related to new executive actual turnover.
The Moderating Effect of Extraversion
To this point we have posited main effects for LMX relating to performance and
withdrawal. However, LMX researchers have consistently called for the examination of
moderators, and in particular individual difference moderators, of the LMX to
performance and turnover relationships (e.g., Erdogan & Liden, 2002; Gerstner & Day,
1997; Vecchio et al., 1986). Our search of the literature for potential moderators
identified a key personality variable, extraversion. Extraversion has surfaced as an
individual difference variable that is stable and exerts an influence on a wide range of
employee behaviors. Extraversion is perhaps the dominant factor in the Five-Factor
Model (FFM) of personality (e.g., Costa & McCrae, 1992; Digman, 1990; Judge, Bono,
Ilies, & Gerhardt, 2002), and of the five factors is the most theoretically and empirically
related to the constructs of interest in the current investigation. Most major personality
LMX to Performance and Turnover 12
inventories include some form of extraversion (Watson & Clark, 1997). Research shows
that extraversion is a valid predictor across criterion types for managers (which included
foremen through top-level executives). And in their meta-analysis on the FFM, Barrick
and Mount (1991) concluded that being extraverted was helpful for managerial jobs, but
less important for other occupations such as secretaries, accountants, production workers,
engineers, and architects. They also found that extraversion was related to higher training
success. Of particular importance, given that our sample consisted of executives learning
new jobs, are the findings of Barrick and Mount indicating that extraversion is a key
personality characteristic for managers. In fact, Judge and his colleagues (2002) found
meta-analytic evidence that extraversion was the most consistent correlate of leadership
across study settings and leadership criteria.
LMX is a theory of social interaction. Therefore, its effects should be contingent on
the extent to which employees interact effectively with others. Personality theory and
research show that people high on extraversion are characterized as seeking out
interaction opportunities with others, generally liking other people, being gregarious and
talkative (Costa & McCrae, 1992), and being high in reward sensitivity. Depue and
Collins (1999) define reward sensitivity as the tendency to experience “an incentive
motivational state that facilitates and guides approach behavior to a goal” (p. 495).
Research has identified reward sensitivity which included ascendance (social dominance,
enjoyment of leadership roles, assertiveness, and goal accomplishment) as a higher-order
factor underlying extraversion (e.g., Lucas et al., 2000). Subsequently, Ashton et al.
(2002) found that a central feature of extraversion is the “drive to garner social attention”
which they define as the tendency for people to behave in ways that attract and hold
LMX to Performance and Turnover 13
social attention, and that these individuals enjoy engaging in these behaviors. Introverts,
on the other hand, tend to be reserved, independent and prefer their own company or that
of habitual companions. In terms of job characteristics, extraverts seek out novel,
complex, challenging, and varied tasks, as well as intense stimuli, while introverts tend to
prefer predictable paths in their work (Costa & McCrae, 1992).
Successful executives have reported developmental experiences associated with
their success such as networking, having developmental job assignments, and
encountering novel situations (Lyness & Thompson, 2000). Interestingly, the benefits of
high LMX relationships and the personality characteristics associated with being
extraverted are strikingly similar in terms of the extent to which they influence success as
an executive. Because extraverts are characterized as seeking situations which garner
social attention and interaction, they are likely to do well in these positions, without the
necessity of forming high-quality relations with their leader. Extraversion is a trait that
fits well with the demands of an executive position, and therefore new executives high on
extraversion seek information, engage in social networking (Bozionelos, 2003), and
behave in ways that would lead to higher levels of adjustment in their new positions. For
example, in their study of new employees, Wanberg and Kammeyer-Mueller (2000)
found that extraversion was positively related to feedback seeking and interactions with
organizational insiders.
High LMX relationships are characterized by frequent interaction (e.g., Bauer &
Green, 1996; Kramer, 1995), and extraverts desire interaction. And while high LMX
relationships are characterized by challenging assignments and a wide range of job
responsibilities (e.g., Liden et al., 2000), extraverts enjoy job challenge and novel work.
LMX to Performance and Turnover 14
In essence, the preferences and behavioral tendencies that characterize extraverts parallel
the qualities of both typical high-quality LMX relationships as well as executive success
(Lyness & Thompson, 2000). Therefore, for extraverts, LMX and performance should be
weakly related, as extraverts should be able to perform well at executive jobs regardless
of the quality of their LMX relationships.
Introverts are in a seemingly precarious situation whereby their personalities do not
fit the needs of new employees to seek information to help them adjust to their new roles.
Without a high LMX relationship, introverts may find it difficult to access needed
information and resources as well as to navigate complex social networks. Therefore, it is
possible that for introverts, LMX relationships play a critical role in their adjustment.
Without the benefits derived from establishing high LMX relationships, their tendency to
be reserved and reclusive may make it difficult for them to perform at the level of their
extraverted counterparts. We propose that for an introvert, performance will be related to
LMX, such that the higher their LMX, the higher their performance. Those introverts
who are able to successfully establish and maintain high LMX relationships should be
able to accrue benefits similar to their extraverted coworkers.
Hypothesis 4: Extraversion moderates the relationship between LMX and job
performance, such that there is a positive relationship for those low on extraversion
(introverts) whereas the relationship is not significant for individuals high on extraversion
(extraverts).
Similarly, for introverts, we propose that LMX will be crucial for their integration
into the organization, such that the higher their LMX, the lower their turnover intentions
and actual turnover. If introverts working as executives are unable to establish high LMX
LMX to Performance and Turnover 15
relationships and subsequently are unable to become successful in terms of social
integration and/or job performance, they should be less embedded into the organization,
and more likely to want to leave the organization (Lee et al., 2004).
However, although a leader can be instrumental in supporting and motivating
employees (Eisenberger et al., 2002), subordinates are dependent upon such a leader only
to the extent that alternate forms of support, guidance, and feedback are lacking.
Extraverts are more inclined to seek out these alternative sources of support as they tend
to be more independent and likely to engage in proactive socialization behaviors such as
relationship building and feedback seeking than are introverts (Crant, 1995). Related to
their tendency to be proactive, extraverts seek out information, opportunities for social
interaction, and new activities (Bozionelos, 2003; Judge, Martocchio, & Thoresen, 1997),
all behaviors that have been linked to socialization success (Jablin, 2000). Although
introverts can garnish this information and develop contacts with key individuals in the
organization through a strong relationship with the leader (Sparrowe & Liden, 2003), we
contend that extraverts can do so without relying on their leader. This argument is
consistent with substitutes for leadership (Kerr & Jermier, 1978), which suggests that
subordinate independence from others, characteristic of extraverts, serves as a substitute
for leadership.
Thus, we propose that for introverts, LMX is crucial for their successful attainment
of work-related goals, such that the higher their LMX, the lower their turnover intentions
and actual turnover. If introverts working as executives are unable to establish high
LMX relationships they will be less likely to become effectively socialized into the
organization and thus will be more likely to leave the organization. Because extraverts
LMX to Performance and Turnover 16
are able to secure the resources and support needed to become successfully socialized
into the organization without the help of the immediate leader, for extraverts, LMX,
turnover intentions, and actual turnover should be unrelated.
Hypothesis 5: Extraversion moderates the relationship between LMX and turnover
intentions, such that there is a negative relationship for those low on extraversion
(introverts) whereas the relationship is not significant for individuals high on extraversion
(extraverts).
Hypothesis 6: Extraversion moderates the relationship between LMX and actual
turnover, such that there is a negative relationship for those low on extraversion
(introverts) whereas the relationship is not significant for individuals high on extraversion
(extraverts).
Method
Participants and Procedure
Our sample consisted of new employees and transferees holding executive positions
in a Fortune 500 pharmaceutical organization. Two-hundred thirty-one new employees
(new hires and transferees to executive-level positions) and their respective superiors
were invited to participate in this study. Data were collected across four points in time via
three surveys and organizational records. Research on new employee socialization shows
that it takes employees several months before they begin to feel adjusted to both the
social and task aspects of their job suggesting that entry is a key timeframe for
understanding subsequent performance and turnover (Bauer et al., 1998). Therefore, the
timing on these included: prior to entry (Time 1) and three-months post-entry (Time 2)
for the new executives, a survey completed by senior executives about the new
LMX to Performance and Turnover 17
executives at six-months post-entry (Time 3), and data obtained from organizational
records 3 1/2 years later (Time 4).
The organization sent the Time 1 pre-entry survey via postal mail to all new hires,
along with their official job offer. Transferees completed the same survey online, after
receiving the link from the second author. This survey assessed the extraversion level of
new executives, and participants returned their completed surveys directly to the
researchers via U.S. mail in self-addressed, postage paid envelopes or online for
transferees. The Times 2 and 3 surveys were web-based, and the second author forwarded
the links for these surveys directly to new executives at three months following their start
dates and to the supervising senior executives at six months. The Time 2 employee
survey assessed the relationship quality between new executives and their senior
executives and turnover intentions from the new executive’s perspective, and the Time 3
superior survey assessed performance of new executives from the senior executives’
perspective. Time 4 turnover data were gathered from company records 3 1/2 years later.
A total of 168 new executives completed the pre-entry survey for a response rate of
73%. One hundred forty-six new executives completed the three-month survey for a
response rate of 63%. One hundred and eleven senior executives participated in the six-
month senior executive survey for a response rate of 48%. The number of employees who
responded at both pre-entry and at three months was 116, which was the sample size for
Hypotheses 2, 3, 5, and 6 (overall response rate = 50%). The number of dyads (new
executives paired with supervising senior executives) for which we had complete data
across the first three time periods was 67 (with 58 senior executives rating only one new
executive, three senior executives rating two new executives, and one senior executive
LMX to Performance and Turnover 18
rating three new executives), a response rate of 29%. This was the sample size available
to test Hypotheses 1 and 4.
Sixty-six percent of the new executives were new hires, whereas 34% were
employees transferring within the company. However, as noted below, whether the
executive was a new hire or transferee did not affect the results. According to company
records, the average age of new executives was 41 (SD = 7). Fifty-nine percent of the
respondents were male. Seventy-seven percent of the sample was identified as Caucasian,
11.5% as Asian/Pacific Islander, 5.3% as Hispanic, 1.8% as African American, and .9%
as Puerto Rican. The respondents had high levels of education, as 37% of the sample
held a bachelor’s degree, 33% had a masters degree, and 30% held a doctoral degree. The
job titles held by the new executives included 81 Directors and Associate Directors, 24
Senior Managers, and 11 Vice Presidents.
Senior executives who rated new executives were mostly male (75%), and
Caucasian (75%) with 8.8% of the superior sample identified as Asian/Pacific Islander,
4.4% as Hispanic, and 1.5% as African American. The average age of senior executives
was 45 (SD = 6.54). In terms of education level, 22% of the managers held a bachelor’s
degree, 30% had a masters degree, and 48% held a doctoral degree. The job titles held by
the senior executives included 5 Presidents, 34 Vice Presidents, and 44 Senior Directors.
Measures
Control Variables. We identified several potentially relevant control variables. For
example, gender and age have been shown to relate to executive relationship formation
(Lyness & Thompson, 2000). Research has shown that transferees and new hires may
differ (e.g., Kramer, Callister, & Turban, 1995). Therefore, age, gender, and new
LMX to Performance and Turnover 19
executive status (i.e., new hire or transferee) were all gathered from company records.
New hires were coded as “1” and transferees as “0.” Gender was coded “1” for men and
“0” for women. In addition, research has shown that the amount of interaction between
subordinates and superiors is sometimes related to LMX (Schiemann, 1977). Therefore,
we asked new executives to report on the number of hours per week (on average) they
interacted with their superior at Time 2.
Extraversion. At pre-entry, we measured extraversion using 8 adjectives developed
by Saucier (1994) as part of his measure of the five factor model of personality. New
executives reported the extent to which these adjectives were accurate in describing their
personality, using a 9-point scale (1 = extremely inaccurate to 9= extremely accurate).
Example adjectives include “bold,” “energetic,” “extroverted,” and “talkative” ( = .82).
Leader-member exchange. Three months (Time 2) after the new executives started
their new positions, we measured LMX from their perspective, using the 12-item LMX-
MDM scale developed by Liden and Maslyn (1998). Although the LMX-MDM can be
used as a multidimensional scale, Liden and Maslyn (1998) found support for a higher-
order factor, allowing for a composite of all items to be used as a measure of global
LMX. New executives reported their level of agreement using a 7-point scale, ranging
between 1 = strongly disagree and 7 = strongly agree. An example item is “My
supervisor would come to my defense if I were “attacked” by others.” We averaged all
items to create the LMX score ( = .90).
Job Performance. At six months post-entry, we measured job performance from the
superior’s perspective, using four items developed by Welbourne, Johnson, and Erez
(1998). Managers used a 5-point scale (1 = needs much improvement to 5 = excellent) to
LMX to Performance and Turnover 20
rate new executive job performance ( = .91). Sample items included ratings of new
executive “quality of work output” and “quantity of work output.”
Turnover intentions. Three months (Time 2) after the new executives started their
new positions, they reported turnover intentions using a 5-item scale used by Wayne et al.
(1997). Employees reported their level of agreement using a 7-point scale, ranging
between 1 = strongly disagree to 7 = strongly agree. An example item is “I am seriously
thinking of quitting my job” ( = .87).
Turnover. Three and one half years following organizational entry (Time 4),
information regarding new executive turnover was gathered from company records. Of
the 168 executives who participated in this study at Time 1, 68 left the organization by
Time 4 (40%). In addition to turnover, we gathered the dates of separation to examine
the length of stay in the organization.
The methods relating to the measurement and analysis of turnover have garnered
considerable attention (e.g., Dickter et al., 1996; Huselid & Day, 1991; Morita et al.,
1993; Singer & Willett, 1991). The general consensus is that OLS regression is
inappropriate when dealing with binary dependent variables (e.g., Huselid & Day, 1991;
Morita et al., 1993). As Morita et al. (1993) noted, examining when an event such as
turnover happens as well as whether it happens is more informative than what logistic
and probit regression can test. Therefore, researchers recommend using survival analysis
when examining actual turnover. Survival analysis examines both when and if turnover
occurs. Singer and Willett (1991) offer guidelines for survival analyses. Of these, we
followed several suggestions such as gathering longitudinal data, having a specific “start”
time such as entry, gathering data over a meaningful period of time so that the event has a
LMX to Performance and Turnover 21
chance to occur, comparing respondents and non-respondents to ensure no major
differences exist, reporting the survivor function, examining interactions, and examining
the shape of the hazard profile.
We calculated days stayed as the number of days between the day each new
executive completed a Time 2 survey and the day they quit or Time 4. We did not
operationalize the number of days stayed starting from their date of entry, because this
would involve using LMX (a Time 2 variable) to predict survival before Time 2.
However, because Time 2 was exactly three months after the start date for each
individual, calculating the days stayed starting from the day executives start their new
positions did not change the results. Those who eventually left the organization had been
with the organization for an average of 643 days (SD = 357). The average number of
days remaining for the entire sample (both leavers and those who remained) was 1,017
(SD = 403). The earliest time anyone in our sample left was 20 days after completing the
Time 2 survey.
Replication Sample. In addition to this executive sample, we wanted to gather
additional data in order to address the concern that our interaction results might not
generalize to other populations. Therefore, we gathered data from 102 working adults at a
University located in the Northwest using a snowball sampling technique. Jobs of the
participants were diverse and included financial analysts, test engineers, and sales.
Participants were an average of 28 years old (SD = 6.83), had an average of 10 years of
work experience (SD = 6.04), and 60% of the respondents were male.
All of the measures collected were parallel to the executive sample to examine
Hypothesis 5 (LMX, extraversion, turnover intentions, and the control variables of
LMX to Performance and Turnover 22
gender, age, and part-time/full-time work status). Because manager ratings and actual
turnover were not available for this sample, we did not test hypotheses involving
performance or actual turnover (Hypotheses 4 and 6).
Results
Means, standard deviations, and intercorrelations are presented in Table 1. Before
testing our hypotheses, we examined the relationships between respondents and non-
respondents for the main sample as well as between the variables of interest, and several
demographic control variables to make sure significant differences did not affect our
results. Based on t-test results, new executives who responded at both Times 1 and 2 did
not differ from Time 2 non-respondents in terms of age, gender, new executive status,
hours of interaction, or extraversion. Further, new executives who had superiors
complete a Time 3 performance survey did not differ from those who did not in terms of
age, gender, new executive status, hours of interaction, extraversion, LMX, or turnover
intentions. And finally, there were no differences among those who participated in our
study and those who did not in terms of number of days remaining on the job or actual
turnover rate.
In order to examine the potential influence of control variables, we examined the
correlation matrix. As seen in Table 1, age and gender were correlated with extraversion.
In addition, gender was positively related to LMX quality and negatively correlated with
turnover intentions. Finally, number of hours of interaction was positively correlated
with LMX. Therefore, we controlled for age, gender, and hours of interaction in all
analyses but not for employee status, as it was unrelated to our variables of interest.
LMX to Performance and Turnover 23
In order to test hypotheses 1, 2, 4, and 5, we performed two separate moderated
hierarchical regression analyses. In the first step, we regressed job performance and
turnover intentions on employee age, gender, and hours of interaction, as well as
extraversion after it was centered. In the second step, we entered LMX after it was
centered. The coefficient estimate at this step provided tests of Hypotheses 1 and 2. Then,
in the third step we entered the product of the centered LMX and extraversion to the
equation (Aiken & West, 1991), providing tests of Hypotheses 4 and 5.
We tested Hypotheses 3 and 6 via survival analysis. Because there were several
individuals who remained with the organization at the conclusion of the study, the
turnover data were right censored (meaning that a majority of the sample did not leave
the organization during our data collection). Therefore, following Singer and Willett
(1991) we utilized survival analysis via Cox’s proportional hazard model. The dependent
variable in these analyses was the number of days before turnover occurred.
The results of the hierarchical regression analyses are presented in Tables 2 and 3.
Our analyses suggested that LMX was significantly related to both job performance
(= .31, t = 2.64, p < .05) and turnover intentions (= -.35, t = -4.01, p < .01),
providing support for Hypotheses 1 and 2. LMX explained 10% of the variance in job
performance and 11% of the variance in turnover intentions, after controlling for
employee age, gender, hours of interaction, and extraversion.
In order to test Hypothesis 3, we first plotted the sample survivor profile as
recommended by Singer and Willett (1991). Specifically, we examined the probability of
remaining with the organization (the survival function) for individuals high and low in
LMX. Figure 1 depicts the survival functions for low LMX (below mean) and high LMX
LMX to Performance and Turnover 24
(above mean) levels. These curves suggest that the survival rate was higher for
individuals high in LMX.
Survival curves provide preliminary information about the differences between
groups, but because our interest was in examining the more complex relationship of the
interaction between LMX and extraversion, this plot does not provide an actual test of
our hypotheses. Therefore, we used the results from the Cox proportional hazard model,
which is able to test more complex models (Singer & Willett, 1991). The results from the
second step of the Cox regression suggested that the coefficient for LMX was significant
( = -.44, Wald = 4.44, p < .05) and that the coefficient was in the expected direction. In
addition, the change in 2 when LMX was added to the equation was significant (2 (1)
= 4.14, p < .05). LMX was negatively related to the hazard ratio such that, one standard
deviation increase in LMX was associated with a 36% decrease in the odds of leaving.
These results provided support for Hypothesis 3.
Hierarchical regression results presented in Tables 2 and 3 provided preliminary
support for Hypotheses 4 and 5, as the interaction terms of LMX and extraversion were
significantly related to performance and turnover intentions. In order to examine the
pattern of relationships, we plotted the significant interactions following the procedure
described by Cohen and Cohen (1983).
Figure 2 depicts the relation between LMX and performance at high and low values
of extraversion (one standard deviation above and below the mean). Post-hoc analyses
(Aiken & West, 1991) demonstrated that, as expected, there was a positive relationship
between LMX and job performance only for individuals low in extraversion (introverts)
(= .58, t = 4.12, p < .01), but the relationship was not significant for individuals high in
LMX to Performance and Turnover 25
extraversion (= -.01, t = -.06, p > .05). The interaction term explained 10% of the
variance in job performance and the entire model accounted for 19%. These results
provided support for Hypothesis 4.
Figure 3 depicts the nature of the relationship between LMX and turnover
intentions at high and low levels of extraversion. Supporting Hypothesis 5, there was a
negative relationship between LMX and turnover intentions for individuals low in
extraversion (introverts) (= -.53, t = -4.78, p < .01), but no relationship for individuals
high in extraversion (= -.03, t = -.26, p > .05). The interaction term accounted for 5%
of the variance in turnover intentions and the entire model accounted for 24%.
Proportional hazard model results provided support for Hypothesis 6. As presented
in Table 4, the interaction term was significantly related to the hazard rate (= .47, Wald
= 7.24, p < .01). Following Aiken and West’s (1991) technique, we found that for
individuals high in extraversion, there was no relationship between LMX and the hazard
rate ( = .06, Wald = .04, p > .05). However, for individuals low in extraversion, LMX
was negatively related to the hazard rate ( = -1.02, Wald = 11.92, p < .01), meaning
that LMX was negatively related to the probability of turnover. We also calculated the D
statistic, which is similar to the R2 used in regressions, following the formula reported in
Sheridan (1992). The interaction term explained 7% of the variance in hazard rates, and
the overall model explained 11%. These results provided support for Hypothesis 6.
We also tested the proportional hazards assumption inherent in Cox regression
(Singer & Willett, 1991). We plotted hazard functions for different levels of all
predictors, and found the hazard plots to be parallel in all cases. Furthermore, we entered
the interaction term of our variables of interest (LMX and extraversion) with time into the
LMX to Performance and Turnover 26
equation, and found them to be nonsignificant. These analyses indicated that the
proportionality assumption was not violated.
Replication of results. We tested Hypothesis 5 using the replication sample of
working adults. We ran a hierarchical moderated regression in which we regressed
turnover intentions on the control variables, LMX, and extraversion in the first step and
the interaction term in the second step. The interaction term of extraversion and LMX
was significantly related to turnover intentions ( = .19, t = 2.24, p < .05). The
interaction term explained 3% of the variance in turnover intentions. The plot of the
interaction in Figure 4 shows that the relationship between LMX and turnover intentions
was stronger for introverts than for extraverts. These findings are consistent with the
findings from the executive sample. Thus, we established that the results for Hypothesis
5 replicated in our general adult working population.
Discussion
At the outset of this article we argued that organizations that are able to maximize
the effectiveness of their new executives have a competitive advantage over those that do
not. Yet, few studies have examined the socialization of senior-level executives. We
proposed that extraversion moderates the relation between LMX quality, executive
performance, and withdrawal.
Strong support was found for all the hypothesized moderating relationships, as
evidenced by R2 for the interaction terms ranging between 5% and 10% above the main
effects and control variables. We found support for the expectation that extraversion
would moderate the relationship between LMX, turnover intentions, and turnover. Our
findings also support the idea that performance is related to LMX, but that this
LMX to Performance and Turnover 27
relationship must take into account the personality of the employee being rated such that
new executives low on extraversion need the support of organizational insiders, such as
their immediate superiors, to help them succeed and remain with the organization.
At the multivariate level, the performance of extraverts appeared unrelated to LMX
with extraverts performing at the same level regardless of their LMX relationships.
Conversely, for introverts, having a high LMX relationship was critical to high
performance. Those individuals who were introverted and who were unable to establish a
high LMX relationship had lower ratings of performance.
Our results indicated that high LMX and high extraversion provided similar
advantages to new executives, such that only for relatively introverted executives was
LMX significantly related to performance, turnover intentions, and turnover. The job of
executive-level employees requires social interaction, networking, and dealing with novel
situations. Extraverts may manage these situations via their more attention seeking
personality whereas introverts seem to need the assistance of high LMX relationships.
Thus, for an introverted executive, a high LMX relationship seems essential for success,
but extraverts’ ability to seek social interaction, resources, and support suggests that
extraversion may serve as a substitute for leadership (Kerr & Jermier, 1978).
Even though we hypothesized that extraversion would act as a moderator of LMX,
it is also possible to interpret the results in a way in which LMX is the moderator. In
other words, our results could be interpreted such that high LMX acts as a substitute for
extraversion. Our results indicate that there would be a difference in performance and
turnover between introverts and extraverts for only those with low LMX. This is an
encouraging finding, given that personality is a fairly stable construct that is not likely to
LMX to Performance and Turnover 28
change over short periods of time. Even though extraverts seem to be at an advantage as
new executives, introverts can deal with their limitations by seeking and forming high
LMXs with their immediate managers.
Taken together, it seems apparent that personality matters to new employees, at
least at the executive level. It is interesting to note that this sample had a relatively high
level of extraversion (the average was 6.67 on a 9 point scale). Future research should be
conducted to see if these relationships hold in other samples of employees who hold
lower-level positions and/or have more variance in terms of personality, as research has
shown that different behaviors for success are needed for those above and below middle
management (e.g., McCauley et al., 1994).
Implications
In terms of turnover intentions and turnover, it is apparent that those who are
introverted and do not have high-quality LMX relationships are the most vulnerable
executives. This has important implications for organizations as they invest large sums
of money in new hires, especially at the executive level, and a loss of a high-level
employee can also cause potential problems for competitiveness. This study was
conducted in the pharmaceutical industry where industry secrets are closely held and
information is an important commodity. This underscores the need to work with new
executives, especially those who are more introverted, to enhance retention.
Extraverts were rated more highly in terms of performance at the bivariate level.
This implies that organizations may want to consider including some measures of
personality in their selection batteries. This is consistent with findings by Barrick and
Mount (1991) that show personality relating to job outcomes for managers. Conversely,
LMX to Performance and Turnover 29
the negative effects of introversion on task performance can be ameliorated by building
effective relationships with managers. Organizations can maximize the effectiveness of
their human resources by reaching out to more introverted employees in terms of
mentoring or even providing LMX training for superiors as described in Scandura and
Graen (1984) as a way to smooth the transition for introverted employees.
It is also possible that the observed lower performance for introverts in low LMX
relationships reflects an observation bias on the part of the senior executives who were
rating performance. For example, the true performance of introverts, who are less likely
to seek out interactions, may go unnoticed. Conversely, it may be that extraverts are
better able to communicate and clarify their ideas with their superiors even given a
relatively low-quality exchange. However, it is also possible that for executives, the
ability to communicate with others is a key job performance dimension, thus the ratings
may reflect a true difference in performance levels based on personality. Therefore, it
would be helpful to extend the present study with future research that includes objective
performance ratings and/or peer performance ratings.
Another set of interesting findings revolved around the demographics of new
executive age and gender that were unrelated to superior ratings of performance.
However, men, 59% of the new executive employee sample, reported having higher-
quality LMX relationships than women while women reported having higher turnover
intentions. This pattern of findings is consistent with previous research demonstrating a
subtle difference in how men and women perceive the environment at higher levels of the
organization (Lyness & Thompson, 2000). We would characterize this Fortune 500
organization as a traditional, hierarchical organization. The superiors who participated in
LMX to Performance and Turnover 30
this sample were primarily male (75% of the sample) and previous research on executives
has found that women and younger employees may have a harder time forming strong
relationships (Lyness & Thompson, 2000) and receiving developmental job experiences
(Ohlott, Ruderman, & McCauley, 1994). This may, in part, relate to the ‘glass ceiling’
that has been reported to exist in Fortune 500 organizations (Davies-Netzley, 1998;
Lyness & Thompson, 1997). Future research is encouraged that further examines the role
that gender and age play in the formation of strong LMX relationships for new executives
to ensure a “level playing field” and welcoming environment.
Potential Limitations
Although 168 new executives and 111 senior executives participated, the final
sample used for this study was 116 new executives (50% response rate) with 67 for the
performance analyses (29% response rate). While these response rates are consistent
with previous longitudinal, new employee studies (Bauer et al., 1998), a potential concern
exists that the lack of power somehow comprised our findings. The usual concern with
low power is typically one of inability to detect true differences (Cohen & Cohen, 1983).
The concern for low power is even more evident in studies of interaction; where
problems such as small sample size, unreliability in predictor variables, and range
restriction in predictor variables are cited as some reasons interactions often go
undetected (Aguinis & Stone-Romero, 1997). These concerns are lessened here due to the
strong support garnered for all of the interaction hypotheses. Interaction effects are very
difficult to detect, and account for 1 to 3% of the variance (Aiken & West, 1991). The
interactions we examined accounted for 5-10% of the variance in our outcomes.
Therefore, the moderation effects detected seem strong in comparison, and our ability to
LMX to Performance and Turnover 31
detect them with a modest sample size may be indicative of the magnitude of the effect
sizes in the overall population. In fact, for the R2 found here for the interaction, our
power was .84 (Borenstein, Rothstein, & Cohen, 2001).
Another potential concern regarding the sample size is generalizability. However,
our response and non-response analyses revealed no differences between respondents and
non-respondents at Times 2 or 3. Further, no differences were found between participants
and non-participants in terms of actual days on the job, or in their actual turnover rates.
This implies that our sample was not overly skewed in terms of the study variables.
Finally, we were able to replicate the interaction finding for turnover intentions with a
cross-section of lower-level jobs. This leads us to be less concerned about
generalizability. Nonetheless, future research that extends the generalizability of this
study is encouraged.
In addition, correlations between two measures may be inflated if both are obtained
from the same person at the same point in time using the same data collection technique.
We designed this study to minimize this potential limitation. Our data collection was
across three time periods over several months and then again after 3 1/2 years which
should mitigate common stimulus cues and consistent responding. Also, data were
collected from three sources: superiors, new executives, as well as from organizational
records. This eliminates the concern of common method bias for those measures. And
third, tests were run conservatively by controlling for any additional variables that were
theoretically related and which covaried with predictors and criteria (in this case age,
gender, and interaction hours). Therefore, we have confidence that the observed
relationships are not simply due to common method variance.
LMX to Performance and Turnover 32
A final limitation is our inability to make causal inferences, a shortcoming that
plagues non-experimental research. It is difficult to address causality, even in a
longitudinal study, because we cannot know how respondent cognitions influence
behaviors occurring between data collections. For example, when performance is
measured at a later time than LMX, leaders may be thinking about the performance of
subordinates prior to that measurement, and this could influence future interactions.
Liden, Wayne, and Stilwell’s (1993), finding that LMX relationships appear to form
within the first two weeks post-entry, largely based on perceived similarity and liking and
not performance, indicates an LMX to performance causal direction. In fact, researchers
(e.g., Bauer & Green, 1996) have argued that the relationship between LMX and
performance is probably reciprocal. It would be helpful to have future research
specifically address this issue of causality.
With respect to causality between LMX and turnover, it is important to note that
none of the executives in our sample left their jobs before three months. To the extent
that Liden et al’s (1993) finding that LMX relationships formed in two weeks generalizes
to other organizations, it is unlikely that turnover intentions would determine LMX
quality. We contend that newcomers who have exerted the effort associated with
searching for and transitioning into a new position would not have decided within the
first two weeks that they wanted to leave the organization. Therefore, although we
acknowledge that it is possible for turnover intentions to drive LMX, we feel that an
LMX to turnover causal direction is much more likely.
As noted earlier, executives are key organizational members who have the ability to
shape and influence the decisions made regarding a variety of important factors. We
LMX to Performance and Turnover 33
identified key factors that may help or hinder new executives to “get up to speed” quickly
and to remain with the organization. This study illustrates the importance of personality
as a moderator of the LMX to outcome relationship for new executives. We found that
high LMX is helpful in achieving new executive adjustment, but only for introverted
executives. Extraverted new executives are likely to be successful in their new positions,
but the same benefits can be achieved among introverts who succeed in forming high
LMX relationships with their superiors. Our results demonstrate the importance of paying
attention to both personality and relationships for executive development.
LMX to Performance and Turnover 34
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Table 1
Means, Standard Deviations and Intercorrelations among Variables
Variable Mean SD 1 2 3 4 5 6 7 8 9
1. Age (T1) 40.97 7.03 -
2. Gender (T1) .59 .49 .06 -
3. Employee Status (T1) .66 .47 -.16 -.03 -
4. Hours of Interaction (T2) 4.56 4.93 -.15 -.03 -.02 -
5. Extraversion (T1) 6.67 1.13 -.18* -.19* .04 -.01 (.82)
6. LMX (T2) 5.84 .77 -.12 .18* .15 .18* .16 (.90)
7. Turnover Intentions (T2) 1.71 .87 -.07 -.31** -.11 .09 -.04 -.37** (.87)
8. Job Performance (T3) 4.37 .74 -.09 -.07 -.02 .11 .25* .33** -.02 (.91)
9. Days Stayed (T4) 1017.18 403.18 .03 .06 -.08 -.05 .04 .13 -.20* .25* -
Note. n = 67 – 120. Gender was coded 1 = male, 0 = female; employee status was coded 1 = new hire, 0 = transferee; T1 = Time 1
(pre-entry, new executive rated); T2 = Time 2 (3 months post-entry, new employee rated); T3 = Time 3 (6 months post-entry, superior
of new executive rated); T4 = Time 4 (3 1/2 years). Coefficient alpha reliability estimates are presented along the diagonal. Age,
gender, employee status, and days stayed in the organization were all gathered from company records.
* p < .05. ** p < .01.
LMX to Performance and Turnover 43
Table 2
Hierarchical Regression Analysis with Job Performance as the Dependent Variable
Job Performance
Variable Step 1 Step 2
(Hypothesis 1)
Step 3
(Hypothesis 4)
Age -.03 .00 .00
Gender -.01 -.03 -.03
Hours of Interaction .06 .03 .06
Extraversion .23 .21 .20
LMX .31* .25*
LMX x Extraversion -.32**
R2 .07 .10 .10
F 1.17 7.00* 8.26**
R2 .07 .17 .27
Adj. R2 .01 .10 .19
Overall F 1.17 2.42* 3.64**
Note. n = 67 for Hypotheses 1 and 4. LMX = leader member exchange. Gender was
coded 1 = Male and 0 = Female. Standardized regression coefficients are reported.
Extraversion and LMX are centered variables. Confidence intervals for the hypothesized
and supported relationships did not include zero.
* p < .05. ** p < .01.
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Table 3
Hierarchical Regression Analysis with Turnover Intentions as the Dependent Variable
Turnover Intentions
Variable Step 1 Step 2
(Hypothesis 2)
Step 3
(Hypothesis 5)
Age -.06 -.09 -.10
Gender -.32** -.25* -.22**
Hours of Interaction .07 .13 .12
Extraversion -.12 -.05 -.04
LMX -.35** -.31**
LMX x Extraversion .23**
R2 .12 .11 .05
F 3.79** 16.13** 7.72**
R2 .12 .23 .28
Adj. R2 .08 .19 .24
Overall F 3.79** 6.67** 7.18**
Note. n = 116 for Hypotheses 2 and 5. LMX = leader member exchange. Gender was
coded 1 = Male and 0 = Female. Standardized regression coefficients are reported.
Extraversion and LMX are centered variables. Confidence intervals for the hypothesized
and supported relationships did not include zero.
* p < .05. ** p < .01.
LMX to Performance and Turnover 45
Table 4
Results of the Proportional Hazards Model using Cox Regression
Independent Variables Step 1 Step 2 Step 3
SE Wald OddsRatio
SE Wald OddsRatio
SE Wald OddsRatio
Age -.01 .02 .20 .99 -.01 .02 .26 .99 -.02 .02 .54 .98
Gender -.19 .31 .36 .83 -.05 .32 .02 .95 .07 .33 .04 1.07
Hours of Interaction .01 .03 .22 1.01 .03 .03 .73 1.03 .03 .03 1.20 1.03
Extraversion -.04 .14 .09 .96 -.01 .14 .00 .99 .12 .15 .58 1.12
LMX -.44 .21 4.44* .64 -.49 .22 5.23* .61
LMX x Extraversion .47 .17 7.24** 1.61
2 .86 4.14* 6.86**
2 .87 5.30 13.32*
D .00 .04 .11
Note. n = 116 for Hypothesis 6. Gender was coded 1 = Male and 0 = Female. Extraversion and LMX are centered
variables. Confidence intervals for the hypothesized relationships did not include 1. * p < .05 ** p <.01.
LMX to Performance and Turnover 46
Figure Captions
Figure 1. Sample survivals function at high and low levels of LMX.
Figure 2. The relationship between LMX and performance at high and low levels of
extraversion.
Figure 3. The relationship between LMX and turnover intentions at high and low levels
of extraversion.
Figure 4. The relationship between LMX and turnover intentions at high and low levels
of extraversion.
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LMX to Performance and Turnover 48
LMX to Performance and Turnover 49
LMX to Performance and Turnover 50