THE ROLE OF ENGAGEMENT AND SERVICE CLIMATE IN THE RELATIONSHIP BETWEEN LEADERS, TEAM MEMBER AND ORGANIZATIONAL CITIZENSHIP BEHAVIOR

Objective: The theory of leader member exchange (LMX) is complemented by team member exchange (TMX) to increase extra performance mediated by work engagement (WEN) and organizational service climate (OCL). Therefore, this research aimed to examine the influence of WEN as a mediator of LMX and TMX on organizational citizenship behavior (OCB) and OCL as a moderating variable. Theoretical Framework: This study is based on social exchange theory, balance theory, and job-demand resource model to test the influence of LMX and TMX on OCB mediated by WEN and moderated by OCL. Method: Data was obtained through a survey with a questionnaire having a sample of 500 employees of micro, small, and medium enterprises (MSME) in Indonesia. Testing the relationship model using structural equation modeling (SEM) with a two-stage approach in AMOS was carried out after testing the questionnaire to be valid and reliable and there was a correlation between the variables studied. Results and Discussion: The results showed that WEN was a mediating variable and OCL moderated the relationship model. However, LMX did not affect OCB directly like TMX and WEN. Research Implications: This research provided implications to build OCL in MSME and extended the direct influence of LMX on OCB. Building WEN will improve employee performance broadly. Originality/ Value: Close relationships with leaders and coworkers strengthen interpersonal relationships in the workplace, thereby improving performance.