EFFECTS OF SUPERVISORS' UPWARD EXCHANGE RELATIONSHIPS ON EMPLOYEES: TESTING MULTILEVEL MEDIATION ROLE OF EMPOWERMENT
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This study empirically examined the proposition that supervisors' exchange relationships with their own supervisors (i.e., LLX) influence their subordinates' work related outcomes through three mechanisms: (1) motivating the team and its members, captured by team and individual empowerment, (2) providing leader-member relationship norms, and (3) facilitating the relationships between leader-member exchange (i.e., LMX) and individual outcomes. Analyses of multi-source and lagged data from 104 team supervisors and 577 subordinates showed that team and individual empowerment sequentially mediated the positive effect of LLX on subordinates' job satisfaction and job performance. Further, LMX mediated the positive effect of LLX on individual empowerment. It was also found that the indirect relationships of LMX with job satisfaction and job performance via individual empowerment were stronger when LLX was higher. Theoretical and practical implications of the findings were discussed.