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Original Articles

Diagnosing the effects of leader-member exchange quality on performance in the context of organizational culture: a case from Turkish family-owned businesses

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Pages 174-195 | Received 19 Sep 2011, Accepted 28 Dec 2011, Published online: 04 Mar 2014
 

Abstract

The main purpose of this study was to diagnose the effects of leader-member exchange (LMX) quality on performance in the context of organizational and Turkish culture. The study was conducted in two family-owned businesses (FOBs), as they are very important structures in which in-group and out-group formations can be seen. Firm A (33 employees representing 41 dyads) and Firm B (61 employees representing 60 dyads) were especially chosen as they enabled us to apply the coding system leading to effective evaluation of surveys as the unit of analysis is “dyads”. In this framework, this study offers an important contribution to the international management literature as positive effects of LMX quality on firm performance, subordinate performance, intention to leave and job satisfaction were found within the context of organizational and Turkish culture. As the proportion of FOBs is almost 95% in Turkey, they represent Turkish economy and business culture well, leading to more generalizable results. Thus, firms can lead to increase in both subordinate and firm performance by creating an organizational culture in which high quality leader-member relationships are emphasized, finally leading to positive organizational outcomes.

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Notes on contributors

Nazli Ayse Ayyildiz Unnu

Nazli Ayse Ayyildiz UNNU got her Master degree from Ege University, Institute of Social Sciences, Department of Business Administration in 2008. After getting her Master degree, she started PhD program at Ege University, Institute of Social Sciences, Department of Business Administration in the province of Izmir, Turkey. She has been working as an Assistant Professor in Ege University, Faculty of Economics and Administrative Sciences since 2013. She has been also working as “Departmental Coordinator for Erasmus Program” She is the former editorial assistant of Ege Academic Review, an international peer reviewed Journal (www.eab.ege.edu.tr). Her main field of study is Management and Organization. She has presented many papers at both international and national conferences and all of her papers have been published as proceedings. Besides, she has articles published in national and international refereed journals. She and her colleagues got Best Paper Award with the paper titled “Management Fads and Fashion In Turkey: Role of Consulting Firms on Dissemination Process of Strategic Management Tools”, presented at International Strategic Management Conference in 2007. She is also the co-author of a book, which is mainly related with postive and negative styles of leadership, named “Öteki Liderlik” (entitled as “The Other Side of Leadership” in English).

Julide Kesken

Julide KESKEN is a Professor in Ege University, Faculty of Economics and Administrative Sciences, Department of Business Administration. She has been also working as “Dean” of the Faculty since 2012. Besides, she has been working as a Conjunct Professor at Izmir University of Economics and Yasar University located in the province of Izmir in Turkey. Her PhD was on Organizational Politics. Her main field of study is Management and Organization. She has many articles published in national and international journals. She and her colleagues got Best Paper Award with the paper titled “Management Fads and Fashion In Turkey: Role of Consulting Firms on Dissemination Process of Strategic Management Tools”, presented at International Strategic Management Conference in 2007. She is the member of Global Awarenees Society International and European Group of Organizational Studies. She is also a member of Ege University, Social Sciences Institute's Board of Directors. Besides, she is the former consultant of Aegean Region Chamber of Industry. She has been carrying out many consultancy assignments for both family-owned businesses and international companies. She is also the author of a book, which is mainly related with postive and negative styles of leadership, named “Öteki Liderlik” (entitled as “The Other Side of Leadership” in English).

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