Exploring the curvilinear relationship between LMX and negative affect during organizational change: can transformational leadership brighten the dark corners?

Purpose While many studies confirm the benefits of high-quality leader-member exchange (LMX), the majority of previous research assumes that “more is better” (i.e. positive leader behaviors), failing to consider more complicated patterns in which the beneficial effect of positive behavior may start to wear out. In this study, drawing on the “too much of a good thing” framework, we aim to explore a curvilinear relationship between LMX and negative affect during an impactful organizational change. Design/methodology/approach To test our hypotheses, we conducted a survey with 160 employees going through a significant organizational change process during a merger and acquisition (M&A) situation. Findings We find that in very low and high levels of LMX, followers tend to experience higher negative affect. Moreover, we investigate whether transformational leadership moderates this curvilinear relationship and find that the curvilinear effect of LMX on negative affect is weaker when the manager displays transformational leadership. Originality/value With our findings, we contribute to the debate on the potential complexities of high-quality LMX relationships and respond to the calls to have a balanced examination of the costs and benefits LMX. Moreover, we discuss the bright and dark sides of leadership, particularly in a change and transformation context.