Friend or foe in the eyes of the beholder? How and when LMX increases and decreases workplace ostracism

Purpose This study aims to build on social comparison theory to develop a theoretical model of leader–member exchange (LMX) relationship to workplace ostracism through perceived organizational status by coworkers and envy. This study further proposes that warmth and competence may potentially moderate these two indirect effects. Design/methodology/approach This study tested the hypotheses in a battery manufacturing company located in South China by a survey of 216 employees organized in 55 work teams, using different sources. Additionally, the authors conduct two online vignette experiments to test this study’s mediation, proving the causality. Findings The authors found that high-level LMX leads to both envy and perceived organizational status by coworkers, which results in a mixed blessing on workplace ostracism toward the employee with high-level LMX. The focal employee’s warmth and competence moderate these indirect relationships. Research limitations/implications The authors use LMX to explore antecedents of workplace ostracism and explain how and when these focal employees suffer workplace ostracism from their coworkers. The authors extend the research on LMX by examining the interpersonal risk of being a focal employee. The authors discover two critical boundary conditions – warmth and competence. Practical implications This study suggests that it is important to balance the level of the differential LMX; appropriately endorsing other members is a good way to avoid eliciting envy and opposition. Meanwhile, person-oriented citizenship behaviors such as demonstrations of concern or help may shortly build up an employee’s warm impression on their coworkers. Originality/value By discovering the bright and dark sides of LMX, this paper has the potential to advance theories on LMX and workplace ostracism. Therefore, the authors believe the current research will have an important impact on relevant research in the future.