The development of leader–member exchanges: Exploring how personality and performance influence leader and member relationships over time Jennifer D. Nahrgang * , Frederick P. Morgeson 1 , Remus Ilies 1 The Eli Broad Graduate School of Management, Michigan State University, N475 North Business Complex, East Lansing, MI 48824-1122, USA article info Article history: Received 16 November 2007 Accepted 10 September 2008 Available online 25 October 2008 Accepted by John Shaubroeck Keywords: Leader–member exchange LMX Leadership Performance Personality Growth-curve modeling abstract Scholars have long recognized the importance of leader–member relationships for a host of important outcomes, including satisfaction, performance, and citizenship behaviors. Yet, relatively little research has explored how these relationships develop over time. Using a longitudinal design and growth-curve modeling, we examine the development of leader–member relationships from the initial interaction through the early relationships stages (the first 8 weeks). Results based on 330 student dyads support predictions that leaders form differentiated exchanges with members. We find that team member extra- version and leader agreeableness influence the ratings of relationship quality at the initial interaction whereas leader and member performance influence the development of the relationship over time. Ó 2008 Elsevier Inc. All rights reserved. Considerable research has shown that workplace relationships have a significant impact on important employee attitudes and behaviors. Research has found that positive relationships with coworkers and supervisors are related to lower stress and turnover intentions, increased employee job satisfaction, and increased per- formance and citizenship behaviors (Gerstner & Day, 1997; Hum- phrey, Nahrgang, & Morgeson, 2007; Ilies, Nahrgang, & Morgeson, 2007). Furthermore, workplace relationships have been shown to be important in the socialization process of employees (Major, Koz- lowski, Chao, & Gardner, 1995). Because individuals’ careers involve multiple transitions across organizational boundaries (e.g. Arthur & Rousseau, 1996; Greenhaus, 2003; Hall, 1996), it becomes increas- ingly important to examine leader–member relationships, which have been suggested to be the most important relationship for assimilating a new employee into an organization (Graen, 1976). An important question posed by researchers is how leaders and members of a group develop and maintain these effective working relationships (Graen & Scandura, 1987; Graen & Uhl-Bien, 1995). One of the keys to leader–member relationships is to understand how the relationship develops from the initial interaction through the early stages of the relationship (Liden, Wayne, & Stilwell, 1993). This is particularly important as researchers have proposed that early relationship stages are a critical period that determines subsequent relationship quality (Berlew & Hall, 1966; Dienesch & Liden, 1986; Graen & Cashman, 1975; Graen & Scandura, 1987; Li- den & Graen, 1980). Despite the empirical evidence demonstrating the significant influence of the leader–member relationship in assimilating employees into an organization (Major et al., 1995) and its impact on important outcomes (Gerstner & Day, 1997; Ilies et al., 2007; Wayne, Liden, Kraimer, & Graf, 1999), we know relatively little about how the relationship develops over time. Even less research has examined how the relationship develops from the initial inter- action between the leader and member. Instead, the tendency of researchers has been to examine the relationship using cross-sec- tional designs and established dyads, a key weakness in the empir- ical research (Gerstner & Day, 1997; Liden, Sparrowe, & Wayne, 1997). Thus, we know little about what influences the early stages of the relationship and if these influences differ over time. Although the theories supporting the leader–member relation- ship speculate about the reciprocal influence between leader and member and the importance of both parties in the relationship, this has rarely been examined. In fact, the prevailing practice in existing research has been to examine the relationship solely from the member’s perspective (Scandura & Schriesheim, 1994). Given the emphasis on employees managing their own careers (Green- haus, 2003; Hall, 1996; Sullivan, 1999), viewing the relationship from both perspectives enables the employee to understand the ways in which they influence the quality of the relationship, as well as understand the ways in which their leader influences the relationship’s quality. 0749-5978/$ - see front matter Ó 2008 Elsevier Inc. All rights reserved. doi:10.1016/j.obhdp.2008.09.002 * Corresponding author. Fax: +1 517 432 1111. E-mail addresses: nahrgang@msu.edu (J.D. Nahrgang), morgeson@msu.edu (F.P. Morgeson), ilies@msu.edu (R. Ilies). 1 Fax: +1 517 432 1111. Organizational Behavior and Human Decision Processes 108 (2009) 256–266 Contents lists available at ScienceDirect Organizational Behavior and Human Decision Processes journal homepage: www.elsevier.com/locate/obhdp