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Effectiveness of leader-member exchange on employee outcomes in cross-cultural environment of China–Pakistan economic corridor

Hafiz Muhammad Arshad (Department of Management Sciences, COMSATS University Islamabad, Sahiwal Campus, Sahiwal, Pakistan)
Muhammad Waheed Akhtar (Department of Management Sciences, COMSATS University Islamabad, Sahiwal Campus, Sahiwal, Pakistan)
Muhammad Imran (Department of Management Sciences, COMSATS University Islamabad, Sahiwal Campus, Sahiwal, Pakistan)
Irem Batool (Department of Management Sciences, University of Management and Technology, Lahore, Pakistan)
Muhammad Asrar-ul-Haq (Department of Management Sciences, COMSATS University Islamabad, Sahiwal Campus, Sahiwal, Pakistan)
Minhas Akbar (Department of Management Sciences, COMSATS University Islamabad, Sahiwal Campus, Sahiwal, Pakistan)

Kybernetes

ISSN: 0368-492X

Article publication date: 26 December 2022

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Abstract

Purpose

China–Pakistan Economic Corridor (CPEC) is a framework of regional connectivity in which employees have to work in a cross-cultural environment. This study has extended the leader-member exchange theory by investigating the mediating role of employee commitment (EC) between the relationship of leader-member exchange (LMX) and employee's work-related behaviors.

Design/methodology/approach

PLS-SEM technique was used to test the model by utilizing a multi-wave/two-source data collected from employees and their supervisors (n = 500) working in different energy projects of CPEC.

Findings

According to the results/findings, LMX has a significant positive impact on employee commitment, employee performance (EP) and open-minded discussions, but insignificant impact on innovative work behaviour (IWB). Mediating role of employee commitment was significant between the relationship of LMX with EP and open-minded discussions, but insignificant with the IWB.

Originality/value

The study contributes empirical evidence to understanding the leader-member exchange relationship among Chinese managers and Pakistani workers. It also contributes to the LMX theory literature by investigating the effect of LMX on followers' outcomes (employee performance, IWB, open-minded discussions) through employee commitment.

Keywords

Citation

Arshad, H.M., Akhtar, M.W., Imran, M., Batool, I., Asrar-ul-Haq, M. and Akbar, M. (2022), "Effectiveness of leader-member exchange on employee outcomes in cross-cultural environment of China–Pakistan economic corridor", Kybernetes, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/K-05-2022-0746

Publisher

:

Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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