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The impact of leader-member exchange (LMX) differentiation on group performance has been considered ambiguous. The purpose of this paper is to resolve this ambiguity by theorizing and examining a curvilinear relationship between LMX differentiation and group performance, and the moderating effects of group diversity on this relationship.

Data were drawn from 63 work groups (consisting of 322 members and 63 group leaders) selected from 27 technology service companies in South Korea. Group members rated their perceived LMX quality, while the human resource (HR) directors of each company assessed group performance.

The results showed that LMX differentiation had an inverted U-shaped relationship with group performance and that gender diversity and age diversity negatively moderated that relationship. However, the interaction between LMX differentiation and education-level diversity was not significant.

This study extends extant research by addressing the inconsistency among theoretical perspectives on the effects of LMX differentiation. This study transcends earlier research by considering the complex process of LMX differentiation, such as the curvilinear relationship between LMX differentiation and group performance, and the moderating effects of group diversity on that relationship.

While the origin of Korean Industrial Relations goes back 150 years when the country opened its seaports to foreign countries, it didn’t emerge as a field of study until 1950s when academics began to write books and papers on the Korean labor movement, labor laws, and labor economics. In this paper, we sketch this history and describe important events and people that contributed to the development of industrial relations in Korea. Korean industrial relations in the early 20th century were significantly distorted by the 35-year-Japanese colonial rule (1910–1945). After regaining its independence, the U.S. backed, growth-oriented, military-based, authoritarian Korean government followed suit and consistently suppressed organized labor until 1987. Finally, the 1987 Great Labor Offensive allowed the labor movement to flourish in a democratized society. Three groups were especially influential in the field of industrial relations in the early 1960s: labor activists, religious leaders, and university faculty. Since then, numerous scholars have published books and papers on Korean industrial relations, whose perspectives, goals, and processes are still being debated and argued. The Korean Industrial Relations Association (KIRA) was formed on March 25, 1990 and many other academic and practitioner associations have also come into being since then. The future of industrial relations as a field of study in Korea does not seem bright, however. Issues regarding organized labor are losing attention because of a steadily shrinking unionization rate, changing societal attitude toward labor unions, and the enactment of new and improved laws and regulations regarding employment relationships more broadly. Thus, we suggest that emerging issues such as contingent workers, works councils and tripartite partnership, conflict management, and human rights will be addressed by the field of industrial relations in Korea only if this field breaks with its traditional focus on union and union–management relations.