A Multi-Level Analysis of Team Climate and Interpersonal Exchange Relationships at Work

This paper seeks to advance research on interpersonal exchange relationships between supervisors, subordinates, and coworkers at work by integrating social exchange, workplace friendship, and climate research to develop a multi-level model. We tested the model using hierarchical linear modeling (HLM) with data obtained from a sample of 215 manager-employee dyads working in 36 teams. At the individual level, leader-member exchange (LMX) was found to be related to workplace friendship. Further, workplace friendship was positively related to team-member exchange (TMX) and mediated the LMXTMX relationship. At the team level, HLM results indicated that the relationship between LMX and workplace friendship was moderated by affective climate. These findings suggest that high-quality LMX relationships are associated with enhanced workplace friendship between employees, especially when the affective climate is strong.