One member, two leaders: extending leader-member exchange theory to a dual leadership context

In this study, we develop and test a model that extends leader-member exchange (LMX) theory to a dual leadership context. Drawing upon relative deprivation theory, we assert that when employees work for 2 leaders, each relationship exists within the context of the other relationship. Thus, the level of alignment or misalignment between the 2 relationships has implications for employees' job satisfaction and voluntary turnover. Employing polynomial regression on time-lagged data gathered from 159 information technology consultants nested in 26 client projects, we found that employee outcomes are affected by the quality of the relationship with both agency and client leaders, such that the degree of alignment between the 2 LMXs explained variance in outcomes beyond that explained by both LMXs. Results also revealed that a lack of alignment in the 2 LMXs led to asymmetric effects on outcomes, such that the relationship with agency leader mattered more than the relationship with one's client leader. Finally, frequency of communication with the agency leader determined the degree to which agency LMX affected job satisfaction in the low client LMX condition.