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The purpose of this paper is to examine the influence of one personal variable (locus of control) and two relationship variables (leader-member exchange and co-worker cooperation) on perceptions of organizational politics in Lebanese small and medium-sized enterprises (SMEs).

Survey data was collected from 300 Lebanese employees from different SMEs located between Tripoli and Beirut.

Results of regression analysis indicated that all the three variables were significant predictors of perceptions of politics, and that perceptions of politics affected employee outcomes. More specifically, higher levels of politics are associated with higher turnover intention and lower job satisfaction.

Results of this study raise several implications for companies and employers. Perceptions of politics were found to have a negative impact on employee attitudinal and behavioral outcomes. Therefore, employers must examine the factors that affect employee perceptions of politics in the workplace. Since leader-member exchange and co-worker cooperation were found to predict politics, management's efforts should focalize on improving the relationships between employees and their supervisor as well as their relationships with each other. Management should develop strategies to create an atmosphere of cooperation and support in the organization.

There is paucity of studies on organizational politics in Arabic cultures. This study extends the organizational politics literature by investigating antecedents and outcomes of politics in Lebanon, a country that differs in its culture from US and European contexts.