How Leader-Member Exchange Influences Person-Organization Fit: A social exchange perspective

Drawing from social exchange theory, we theorize as to how relationships involving leader-member exchange (LMX) can affect employees’ person-organization (P-O) fit in the Chinese context. We administrated three-wave surveys to 184 employees in various manufacturing industries. The results show that high-quality LMX is positively related to P-O fit, and more importantly, perceived HRM strength mediates the relationship between LMX and P-O fit. In addition, the relationship between LMX and perceived HRM strength is moderated by communication openness. Specifically, the effect of LMX on perceived HRM strength becomes stronger as the degree of communication openness decreases. Theoretical and practical implications of our findings are discussed, and future research directions are suggested.