Explaining the relational mechanisms and outcomes of multi-modal leader–member-exchange differentiation

Research suggests that multi-modal leader–member-exchange (LMX) differentiation could be the most problematic pattern of differentiation. Therefore, we outline a conceptual model to explain how multi-modal LMX differentiation can manifest as an LMX faultline—a special type of group faultline representing leader-sourced social divides between a leader's preferred subgroup and nonpreferred subgroup(s) within a specified collective. LMX faultlines have dimensions of perceived multi-modal LMX differentiation as well as faultline potency components of compositional diversity, unfairness of differentiation, and faultline agreement. We use LMX faultlines to explain how group members coalesce into subgroups based on concurrent forces of intra-subgroup cohesion and inter-subgroup polarization. Cohesion and polarization explain group-level outcomes (coordination, performance, and viability), subgroup-level insulation, and individual-level outcomes (performance, well-being, and conformity to the subgroup).