Leader-member exchange and industrial relations climate: Mediating role of participatory management in China

Abstract

This study investigates the link between leader-member exchange ( LMX) and the industrial relations climate ( IRC) in the Chinese context. More specifically, we propose that the relationship between LMX and the IRC is mediated by effective participatory management. Based on data collected from three manufacturing firms in Zhejiang Province, China, we find that effective participatory management fully mediates the effects of LMX on openness and apathy dimensions of IRC. However, effective participatory management has a partial mediating effect on the relationships between LMX and harmony and hostility dimensions of IRC. Both the theoretical and practical implications of these findings are discussed.