Affect, organizational justice, and innovative performance: the mediating impact of leader-member exchange
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Date
2005-05
Authors
Saw, Wan Koon
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Abstract
Innovation has received great attention from organizations nowadays. A growing body of research has been carried out to study the antecedents leading to increased innovative performance. This study is intended to contribute to the pool of literature (Malaysian and Western) pertaining to this subject. In this research, innovative performance is the dependent variable, while affect and organizational justice were chosen as the independent variables of interest. Affect was studied from two perspectives--trait and state. Each of them was conceptualized along two dimensions--Positive Affectivity (PA) and Negative Affectivity (NA). Organizational justice consisted of four dimensions--procedural justice, distributive justice, interpersonal justice, and informational justice. Leader-member exchange (LMX) was chosen as mediator and was conceptualized as multidimensional having four dimensions--contribution, loyalty, affect, and professional respect. Data were collected by means of structured questionnaire from 304 supervisor-subordinate dyads who worked in the manufacturing industry in Penang. Seven major hypotheses were formulated. Results obtained partially supported the direct impact of (a) affect on innovative performance (b) organizational justice on innovative performance (c) affect on LMX (d) organizational justice on LMX, and (e) LMX on innovative performance. Partial support was also obtained for the mediating impact of LMX on affect-innovative performance and organizational justice-innovative performance relationships. Implications of the findings highlight the importance of NA as a trait, distributive justice, interpersonal justice, and social currencies of LMX in contributing to innovative performance. Henceforth, Malaysian organizations are recommended to undertake necessary steps to reduce employees’ negative affectivitiy and to promote
distributive and interpersonal justice as well as good social exchange relationships between supervisors and subordinates to raise the level of innovative performance.
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Keywords
Business Administration , Organizational Justice , Innovative Performance , Leader-Member Exchange