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This study explores how status, demographic and positional, moderates the negative effect of deep-level dissimilarity on leader–member exchange (LMX) quality.

Data from three samples were analyzed using hierarchical linear regression and linear mixed-effects methods.

Results suggest that the negative effect of deep-level dissimilarity (perceived work-related attitude and perspective differences) on LMX quality is stronger when the LMX partner has low demographic status (e.g. the LMX partner is an African-American woman). This moderating effect was not significant when deep-level dissimilarity was extended to include differences in personality, interests and values. Results were mixed on whether low positional status (i.e. when the LMX partner is a member rather than a leader) strengthens the negative effect of deep-level dissimilarity on LMX quality.

This study may help leaders, organizational members and diversity managers better manage attitude and perspective dissimilarity in leader–member dyads.

This study expands research exploring interactive effects of dissimilarity and status on work-related outcomes. It is novel in that it explores status not in relative terms but at the societal level. It is also the first study to analyze the moderating effects of two types of status: demographic and positional.