Linking Leader-Member Exchange to Turnover Intention: The Roles of Job Satisfaction and Positive Organizational Climate
Linking Leader-Member Exchange to Turnover Intention: The Roles of Job Satisfaction and Positive Organizational Climate

Summary/Abstract: Purpose – This study investigates whether, how, and when leader-member exchange (LMX) relates to employee turnover intention. Drawing upon the LMX theory and job demands-resources model, a research model is developed and tested to identify the role of job satisfaction acts as a mediator and positive organizational climate as a moderator. Design/methodology/approach – The study used a cross-sectional design, collecting data through online questionnaires from 454 employees at a large logistics company via random sampling. Data analysis was conducted using PLS-SEM with SmartPLS 4 software to test the proposed model. This process involved calculating path coefficients, R² values, and effect sizes (f²) to assess the strength and significance of variable relationships, along with evaluating the reliability and validity of the constructs in the proposed model. Findings – LMX positively impacted job satisfaction, and higher job satisfaction resulted in a decrease in turnover intention. However, LMX's direct effect on turnover intention was found to be insignificant. Instead, the influence of LMX on turnover intention was fully mediated via job satisfaction. Contrary to the initial expectations, positive organizational climate did not moderate the LMX-job satisfaction relationship. Discussion – The factors influencing turnover intention are multifaceted, and LMX alone may not fully explain turnover intention. While leaders may develop strong relationships with their staff, the effectiveness of these interactions in retaining employees largely depends on whether these relationships contribute to job satisfaction. Additionally, the quality of LMX appears to have a stronger effect on employee job satisfaction than the overall organizational climate.

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