Transformational leadership and leader-member exchange: a critical review

PurposeTransformational leadership (TFL) and leader-member exchange (LMX) are two widely studied leadership constructs in the field of leadership. While they seem different, a closer look reveals similarities between TFL and high-quality LMX that question their distinctiveness. By adopting a mixed-method approach, this study aims to critically review the relationship between TFL and LMX from both conceptual and empirical perspectives to evaluate their distinction and unique contributions to workplace outcomes.Design/methodology/approachThe conceptual section reviews the extant literature to identify similarities between TFL and high-quality LMX. The empirical section adopts an umbrella review method, identifying 36 meta-analytic studies with TFL, LMX or both to examine meta-analytic correlations between TFL and LMX and TFL, LMX and their shared nomological networks.FindingsThe conceptual review shows that TFL incorporates conceptual elements of high-quality LMX and vice versa. The empirical review shows that TFL and LMX are highly correlated and the patterns of their shared nomological networks are different. LMX shows stronger correlations with employee performance, citizenship behaviors, overall job satisfaction and commitment. On the other hand, TFL is more strongly associated with motivation, satisfaction with the leader and reduced deviance. While it cannot be concluded that TFL and LMX are redundant, the findings suggest a significant overlap.Originality/valueThis comparative review of TFL and LMX provides an opportunity for a more parsimonious accumulation of findings and extends the understanding of two prominent leadership constructs.