Leader-member exchanges and psychological contract: testing for interaction effects

Abstract

Purpose – The purpose of this paper is to examine the interaction effects of leader-member exchange (LMX) dimensions and how they blend to affect psychological contract in the public service in Uganda. Design/methodology/approach – The authors employ the structural equation model to test a conditional hypothesis. Findings – It is indicated that the magnitude of effect of affect and professional respect on psychological contract is dependent upon perceived contribution, implying that the predictive power of affect and professional respect on psychological contract increases considerably when perceived contribution increases. Research limitations/implications – Only a single-research methodological approach was employed. So, future research through interviews could be undertaken to triangulate the results. Furthermore, future research should be undertaken to examine the multiplicative effects studied in this paper across time. Practical implications – In order to increase the perceptions of fulfillment of the psychological contract in the public service in Uganda, managers should always endeavor to identify a viable LMX mix that can add value to expectations that employee and employer have of each other. Originality/value – This is the first study that focuses on testing the interactive effect of LMX dimensions on psychological contract in Uganda’s public service.