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Effects of Authentic Leadership and Leader-Member Exchange on Employee Psychological Ownership and Organizational Commitment

The Journal of Distribution Science / The Journal of Distribution Science, (P)1738-3110; (E)2093-7717
2015, v.13 no.11, pp.23-30
https://doi.org/https://doi.org/10.15722/jds.13.11.201511.23
Yang, Hoe-Chang
Kwon, Jae-Hyun
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Abstract

Purpose - Small- and medium-sized enterprises often rely on the owner's personal characteristics. This study aims to verify the impact of the awareness of such a business leader's sincerity and the sincerity of their leader-member exchange (LMX) on employee psychological ownership and organizational commitment. The findings offer clues to how small- and medium-sized company leaders should engage with employees. Research design, data, and methodology - A total of 289 valid questionnaires were examined using frequency, descriptive statistics, and correlation analyses and structured equation modeling. Results - Authentic leadership and LMX were both found to have a positive impact on each trust factor, each trust factor had a positive impact on psychological ownership and organizational commitment, and psychological ownership had a positive impact on organizational commitment. Conclusion - These results suggest that small- and medium-size company leaders should use self-awareness and self-regulation to encourage the recognition of their sincerity, and strive to achieve a positive relationship with employees. It also suggests that leaders should improve trust between employees and establish various strategies to enable employee psychological ownership.

keywords
Authentic Leadership, Leader-Member Exchange, Psychological Ownership, Organizational Commitment, Multidimensional Trust

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The Journal of Distribution Science