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The Effect Of Leader-Member Exchange On Organizational Innovativeness: Findings From A Lithuanian Public Sector Organization

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  • Raminta Pučėtaitė
  • Aurelija Novelskaitė

Abstract

The paper investigates the impact of the quality of the relationships between leader and followers or leader-member exchange (LMX) on five dimensions of organizational innovativeness such as product, market, process, behaviour and strategy. The empirical findings were obtained by a survey (n=757) in a public sector organization in Lithuania, where autocratic relationships between leader and followers may be still a tendency due to socio-historical reasons. The findings of a series of regression analysis indicate that, in general, LMX has a comapratively low although statistically significant explanatory power, but for behaviour innovativeness. Regression analysis of the split sample to test the relation between a perceived low, medium and high quality of relationships between leader and followers has yielded no consistent difference in the effect of differentiated LMX levels on organizational innovativeness.

Suggested Citation

  • Raminta Pučėtaitė & Aurelija Novelskaitė, 2014. "The Effect Of Leader-Member Exchange On Organizational Innovativeness: Findings From A Lithuanian Public Sector Organization," Economy & Business Journal, International Scientific Publications, Bulgaria, vol. 8(1), pages 159-171.
    • Handle: RePEc:isp:journl:v:8:y:2014:i:1:p:159-171
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    References listed on IDEAS

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    More about this item

    Keywords

    leadership; leader-member exchange; organizational innovativeness; lithuania; public organizations;
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    JEL classification:

    • A - General Economics and Teaching

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