The Leadership Quarterly 25 (2014) 772783

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The Leadership Quarterly

journal homepage: www.elsevier.com/locate/leaqua

The interactive effect of leadermember exchange and

electronic communication on employee psychological
empowerment and work outcomes
N.Sharon Hill a,1, Jae Hyeung Kang c,2, Myeong-Gu Seo b,3
a
b
c

The George Washington University, School of Business, Department of Management, 315 F Funger Hall, 2201 G Street, NW, Washington, DC 20052, USA
University of Maryland, R. H. Smith School of Business, Department of Management and Organization, College Park, MD 207421815, USA
Oakland University, School of Business Administration, Department of Management and Marketing, 2200 N. Squirrel Road,Rochester,Michigan, 48309, USA

a r t i c l e

i n f o

Article history:
Received 6 March 2013
Received in revised form 20 February 2014
Accepted 18 April 2014
Available online 10 May 2014
Handling Editor: Kevin Lowe
Keywords:
Leadermember exchange
Electronic communication
Virtual work
Psychological empowerment

a b s t r a c t
We advance understanding of the role that leaders play in promoting psychological empowerment
and positive work outcomes (job satisfaction, organizational commitment and job performance)
for employees who engage in a high degree of electronic communication in their job. By
integrating leadermember exchange (LMX) theory and theories of electronic communication,
we build and test a mediated moderation model in which employees degree of electronic
communication in their job amplifies the positive relationship that LMX has to psychological
empowerment and subsequent employee work outcomes. Based on a sample of 353 early-career
professionals employed in a range of different types of organizations, we found general support
for the hypothesized model. We discuss the studys theoretical and practical implications for
leading employees in electronically-enabled work environments.
2014 Elsevier Inc. All rights reserved.

The growth in virtual work arrangements and the increased availability of information and communication technologies (ICT)
have led to an increase in employees use of electronic rather than face-to-face communication for interactions with others
in their job (Kirkman, Gibson, & Kim, 2012; Martins, Gilson, & Maynard, 2004; WorldatWork, 2006). For example, given the
widespread use of telecommuting (WorldatWork, 2006), many employees either work away from a central office or interact with
others who are not in the office. In addition, recent estimates show that well over half of professional employees, regardless of
their work location, now participate in at least one virtual team (Martins et al., 2004), using electronic communication to interact
with distributed team members. Even when coworkers are in the same office, research has shown that at distances of a few
meters between communicating parties (e.g., on different floors of the same building), there is a drastic reduction in face-to-face
communication and an increased use of electronic communication (for a review, see Axtell, Fleck, & Turner, 2004). Given the
proliferation of electronically-enabled (Gibson, Gibbs, Stanko, Tesluk, & Cohen, 2011, p. 1481) work activity, it is important that
leaders understand their role in promoting effective work outcomes for their employees who operate to a large degree in this
mode.
In particular, researchers have cautioned that the challenges associated with using a high degree of electronic communication
and the attendant lack of face-to-face interaction might impede the development of positive employee psychological states, and
ultimately important work outcomes (Gibson et al., 2011; Humphrey, Narhgang, & Morgeson, 2007). These challenges include

1
2
3

E-mail addresses: nshill@gwu.edu (N.S. Hill), kang@oakland.edu (J.H. Kang), mseo@rhsmith.umd.edu (M.-G. Seo).
Tel.: +1 202 994 1314.
Tel.: +1 301 910 7934.
Tel.: +1 301 405 7746.

http://dx.doi.org/10.1016/j.leaqua.2014.04.006
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more difficulty establishing a sense of connectedness with others (Gibson & Gibbs, 2006; Kirkman, Rosen, Gibson, Tesluk, &
McPherson, 2002; Wiesenfeld, Raghuram, & Garud, 1999), more problems establishing shared understanding with communication
partners (Cramton, 2001; Hinds & Weisband, 2003), and greater ambiguity and uncertainty in communications (Greenberg,
Ashton-James, & Ashkanasy, 2007; Tangirala & Alge, 2006). Given these challenges, it is important to understand how leaders can
promote positive employee psychological states, and ultimately positive work attitudes and performance in electronic work
environments. Yet, research in this area has been lacking. Accordingly, in this study, we examine the role of leadership in promoting
psychological empowerment in employees that use electronic communication to varying degrees in their job. Psychological
empowerment is an important psychological state that reflects intrinsic task motivation (Spreitzer, 1995) and has been shown to
impact employee attitudes and performance (for a review, see Seibert, Wang, & Courtright, 2011).
One promising theory of leadership related to fostering employee psychological empowerment is leadermember exchange
(LMX) theory (Dulebohn, Bommer, Liden, Brouer, & Ferris, 2012; Seibert et al., 2011; Spreitzer, 2008). Leadermember exchange
refers to the quality of the relationship between an employee and his or her supervisor (Dienesch & Liden, 1986; Graen &
Uhl-Bien, 1995). There is a growing body of empirical evidence to show that high quality LMX facilitates the development of
psychological empowerment (Dulebohn et al., 2012; Seibert et al., 2011). We extend LMX theory by integrating theoretical
perspectives related to electronic communication (DeSanctis & Poole, 1994; Spears & Lea, 1992; Walther, 1996; Wiesenfeld et al.,
1999) in order to examine employees degree of electronic communication as an important moderator of the relationship that
LMX has to psychological empowerment and subsequent employee work outcomes (job satisfaction, organizational commitment,
and job performance).
We also extend research that has demonstrated the varying effects of leadership dependent on different characteristics of
virtual work environments (Gajendran & Joshi, 2012; Golden & Veiga, 2008; Hoch & Kozlowski, 2012; Joshi, Lazarova, & Liao,
2009; Kahai, Huang, & Jestice, 2012; Purvanova & Bono, 2009). Past research examining leadership in conjunction with the use of
electronic media has primarily focused on transformational and transactional leadership effects (e.g., Huang, Kahai, & Jestice,
2010; Kahai et al., 2012; Purvanova & Bono, 2009). In addition, this current research extends past research that has examined
LMX relative to virtual work environments (Gajendran & Joshi, 2012; Golden & Veiga, 2008; Hoch & Kozlowski, 2012) in two
distinct ways. First, past research has focused primarily on employees work location. For example, Golden and Veiga (2008)
showed that employees work location (in or away from the office) moderated the relationship between LMX and employee work
outcomes. However, as noted earlier, there is research to show that employees might use electronic communication to a high
degree even when working in an office. In other words, different characteristics of virtual work environments (e.g., physical
location, use of electronic communication) tend to operate independently and have differential effects on work outcomes based
on different theoretical rationales (Gibson & Gibbs, 2006). Hence, they warrant separate investigation. Accordingly, Golden and
Veiga (2008) called for research that specifically examines the effects of LMX in conjunction with the use of electronic
communication. Second, past research has not considered impacts to employee psychological states, further prompting calls for
research that examines the psychological processes through which LMX links to employee work outcomes in virtual work
environments (Gajendran & Joshi, 2012).
In summary, we extend LMX theory into electronically-enabled work contexts by highlighting degree of electronic
communication as a moderator of the LMX-psychological empowerment relationship. Further, as shown in Fig. 1, we propose a
mediated moderation model (Preacher, Rucker, & Hayes, 2007) where the interactive effect of LMX and degree of electronic
communication influences important work outcomes (job satisfaction, organizational commitment, and job performance)
through psychological empowerment. Past research related to LMX in the context of virtual work has used a single organization
sample (e.g., Gajendran & Joshi, 2012; Golden & Veiga, 2008); and, more generally, research focused on leadership in conjunction
with electronic communication has typically used ad hoc teams in the laboratory (Kirkman et al., 2012). In this study, we test the
theoretical model using a sample of employees from different organizations and industries.
1. Theory and hypotheses
In this section we develop a theoretical model (Fig. 1) in which degree of electronic communication moderates the relationship that
LMX has on psychological empowerment and, ultimately, employee work outcomes (job satisfaction, organizational commitment, and

Fig. 1. Theoretical model.

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job performance). As a first step in developing our hypotheses, we introduce LMX theory and discuss the nature of the relationship that
LMX has with psychological empowerment.
1.1. Leadermember exchange and psychological empowerment
According to LMX theory (Dienesch & Liden, 1986; Graen & Uhl-Bien, 1995), supervisors form relationships of different levels
of quality with their direct reports. Followers in high quality LMX relationships with their supervisors are in-group members who
receive greater levels of trust, attention, communication, rewards, special privileges, and both emotional and instrumental
support from their supervisor. In other words, they receive treatment that goes beyond the formal employment contract.
Conversely, employees with low quality relationships do not receive these benefits, and are treated strictly according to the
stipulations of the employment contract. Further, since employees view their supervisors as agents of the organization
(Eisenberger, Stinglhamber, Vandenberghe, Sucharski, & Rhoades, 2002; Shanock & Eisenberger, 2006), employees with high
quality LMX are more likely to feel that they are central, included, valued and respected in the organization.
Research shows that a trusting and supportive relationship with ones leader, such as that provided by high quality LMX,
positively impacts the development of psychological empowerment, an important psychological state that reflects intrinsic task
motivation (for reviews and meta-analyses, see Dulebohn et al., 2012; Seibert et al., 2011). Psychological empowerment has been
conceptualized as comprising four cognitions: meaning (a judgment that ones work has value), impact (a belief in ones ability to
influence organizational outcomes), competence (a belief in ones ability to successfully perform work tasks), self-determination
(perceptions that one is free to choose how to carry out work tasks: Spreitzer, 1995; Thomas & Velthouse, 1990). These
dimensions combine additively to create an overall construct of individual psychological empowerment, which has been linked
both theoretically and empirically to important work outcomes through its influence on employee intrinsic motivation (Seibert et
al., 2011).
Recent reviews (Spreitzer, 2008) and meta-analyses (Dulebohn et al., 2012; Seibert et al., 2011) summarize several reasons
why LMX should influence psychological empowerment. A high quality LMX relationship signals to employees their importance
to the leader and to the organization and also provides them with greater access to information from their leaders. This should
help employees better understand the meaning and assess the impact of their work. In addition, the coaching and support
received from leaders in high quality LMX relationships should foster a sense of competence among employees. Finally, greater
trust on the part of their leader results in these employees being allowed greater participation in decision making and autonomy
to determine their work, which should also increase impact as well as feelings of self-determination. Related to this, there is a
strong body of research to suggest that supervisors are more likely to empower their employees with whom they have higher
quality LMX relationships by affording them greater influence in decision making (Scandura, Graen, & Novak, 1986) and
delegating to them more frequently (Schriesheim, Neider, & Scandura, 1998).
In this study, we argue that employees degree of electronic communication in their work will moderate the relationship
between LMX and psychological empowerment. As a next step, we discuss this moderating effect.
1.2. Degree of electronic communication as a moderator of the LMX-psychological empowerment relationship
Researchers have used the term electronic communication to describe communication that occurs using information and
communication technologies (ICT) rather than face-to-face (Gibson & Gibbs, 2006; Gibson et al., 2011; Wiesenfeld et al., 1999)
and shown that the relative use of electronic communication can impact individual and team outcomes (e.g., Chudoba, Wynn, Lu,
& Watson-Manheim, 2005; Gibson & Gibbs, 2006; Gibson et al., 2011; Maynard, Mathieu, Rapp, & Gilson, 2012; Suh, Shin, Ahuja, &
Kim, 2011). In line with this research, we focus on employees relative use of ICT versus face-to-face communication for
interacting with others for their job, to which we henceforth refer as degree of electronic communication. Researchers have
suggested that degree of electronic communication might have important implications for employee psychological experiences at
work and ultimately work outcomes (Gibson et al., 2011). Here, we predict that degree of electronic communication will
moderate the relationship between LMX and psychological empowerment, such that this positive relationship will be stronger
when employees make greater use of electronic communication.
To explain this prediction, we first consider the effect that greater use of electronic communication has on the availability
of information and social cues in the work environment. Theories of electronic communication that are based on the
cues-filtered-out perspective (Culnan & Markus, 1987) point to the lack of social context cues available through electronic
communication relative to face-to-face (e.g., social presence theory, Short, Williams, & Christie, 1976; the cluelessness model,
Rutter, 1984; reduced social context cues, Sproull & Kiesler, 1986; and information richness theory, Daft & Lengel, 1986).
According to this perspective, this lack of social context cues results in more impersonal interactions that are low in social
presence. Social presence is the degree of awareness of the other person in the interaction (Short et al., 1976). This can have
several negative effects; including a reduced sense of connectedness with others (Gibson & Gibbs, 2006; Kirkman et al., 2002;
Wiesenfeld et al., 1999), more difficulty establishing shared understanding with communication partners (Cramton, 2001; Hinds
& Weisband, 2003), and ultimately, greater uncertainty and ambiguity in interpersonal interactions (Greenberg et al., 2007;
Tangirala & Alge, 2006).
Based on this perspective, we expect that electronic communication poses a threat to the development of psychological
empowerment, which makes LMX a more salient influence on the development of this psychological state when degree of
electronic communication is high. Electronic communication creates barriers to the formation of psychological empowerment in

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several ways. First, the greater ambiguity and uncertainty in more electronically-enabled work environments (Fussell & Benimoff,
1995; Tangirala & Alge, 2006; Workman, Kahnweiler, & Bommer, 2003) can make it more difficult for employees to determine the
value of their work contributions and, hence, develop a sense of meaning in their work. Second, employees face barriers to the
development of self-determination because the increased uncertainty makes it more difficult to determine the extent of their
authority and what is expected of them (Spreitzer, 1996). Third, electronic comunication reduces opportunities to directly
observe the impact of their work on others. Finally, a greater degree of electronic communication can reduce the feedback needed
to develop perceptions of competence because the greater effort and time required to communicate electronically (Straus, 1997;
Straus & McGrath, 1994; Walther & Burgoon, 1992) can negatively impact the timeliness and amount of feedback that others
provide (Gibson et al., 2011; Kraut, Fish, Root, & Chalfonte, 1993). Research also suggests that it makes feedback more difficult to
interpret (DeSanctis & Monge, 1999; Gibson et al., 2011) and hampers employees ability to make social comparisons (Greenberg
et al., 2007) that help them assess their level of competence relative to others (Festinger, 1954).
Given the increased barriers to developing psychological empowerment when employees make greater use of electronic
communication, we argue that the positive signals high quality LMX employees perceive from their leader are likely to assume
greater importance in the development of psychological empowerment when other cues in the work environment are less
available. In addition, the uncertainty and ambiguity associated with electronic communication likely increases employees need
for reassurance about their value to the organization, making them more attentive to high quality LMX as an important input for
developing psychological empowerment. In summary, although we expect LMX to contribute to psychological empowerment in
any environment, we predict that this effect will be amplified in work environments characterized by a high degree of electronic
communication.
Hypothesis 1. Degree of electronic communication moderates the positive relationship between LMX and psychological empowerment,
such that this relationship is more strongly positive when degree of electronic communication is high than when degree of electronic
communication is low.

1.3. Leadermember exchange, psychological empowerment and employee work outcomes

There is a strong body of theoretical and empirical research linking psychological empowerment to the positive work
outcomes we examine in this study: job satisfaction, organizational commitment and job performance (for a review, see Seibert et
al., 2011). When employees perceive that their work is meaningful, has an impact, is a good match to their skills (competence),
and provides them autonomy to make decisions about how to do their work (self-determination), they are better able to express
their values and interests through their work. This should result in higher levels of job satisfaction and greater commitment to the
organization that provides them with such work opportunities (Seibert et al., 2011). Also, as mentioned earlier, psychological
empowerment reflects intrinsic task motivation (Thomas & Velthouse, 1990). Several theories of motivation (e.g., Hackman &
Oldham, 1976; Herzberg, Mausner, & Snyderman, 1959) propose that employees who are more intrinsically motivated will derive
a greater sense of satisfaction from their work and also exert greater effort to perform job tasks well. In support of these
arguments, Seibert et al.s (2011) meta-analysis found that psychological empowerment was significantly and positively related
to job satisfaction, organizational commitment, and job performance.
Considered in combination, Hypothesis 1, which predicts that LMX interacts with degree of electronic communication to
influence psychological empowerment, along with the expectation that psychological empowerment will positively influence
employee work outcomes, implies that psychological empowerment mediates the interactive effect of LMX and degree of
electronic communication on job satisfaction, organizational commitment, and job performance. This pattern of relationships
represents a mediated moderation model (Edwards & Lambert, 2007; Preacher et al., 2007), or what Edwards and Lambert (2007)
have referred to as a first stage moderation model, wherein the path from the independent variable (i.e., LMX) to the mediator
variable (i.e., psychological empowerment) is moderated, but the path from the mediator to the dependent variable is not
moderated. In terms of the relationship between LMX and employee work outcomes, this should result in a conditional indirect
effect where the indirect effect of LMX on employee work outcomes through psychological empowerment is dependent on
degree of electronic communication. Further, because degree of electronic communication strengthens the positive relationship
between LMX and psychological empowerment, we predict a stronger positive indirect effect between LMX and work outcomes
through psychological empowerment when degree of electronic communication is high.
Hypothesis 2. Psychological empowerment mediates the interactive effect of LMX and degree of electronic communication on (a) job
satisfaction, (b) organizational commitment, (c) job performance; such that the indirect relationship of LMX to these outcomes is more
strongly positive when degree of electronic communication is high than when degree of electronic communication is low.

2. Method
2.1. Sample and procedure
We tested our hypotheses with 353 full-time employed, early-career professionals recruited from a Masters of Business
Administration program of a large university in the mid-atlantic United States. Participants were employed in a range of different

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types of organizations. They completed a web-based survey conducted as part of a developmental 360 degree feedback class
activity to receive the assigned course credits (worth of 10% of the total course grade), as well as an individually tailored feedback
report providing comprehensive assessment of their leadership capabilities; hence, the response rate was 100% (n = 353).
Participants had an average age of 28.18 years (standard deviation = 4.54). Seventy percent of the participants were male, 61
percent were Caucasian, and 98 percent were full-time employees. Industries most commonly represented by the participants
were financial services (19%), consulting (17%), high tech (12%), defense contractor (11%), government (8%), manufacturing (4%),
and healthcare (4%). Focal individuals completed a web-based survey that assessed demographic variables, psychological
empowerment and the attitudinal employee work outcomes. Each participant also self-nominated multiple supervisors who were
very familiar with his/her work. The nominated supervisors were directly contacted by the research team with an instruction that
their responses were completely voluntary and would be used solely to provide developmental feedback. Each of these
supervisors rated the focal individuals job performance on a separate survey. Based on previous research, we expected ratings
provided for developmental purposes (as was the case here) to be more accurate than performance ratings provided for the
purpose of salary administration (Greguras, Robie, Schleicher, & Goff, 2003).
2.2. Measures
Unless otherwise noted, a 5-point Likert scale ranging from 1 (strongly disagree) to 5 (strongly agree) was used for the survey
measures.
2.2.1. Degree of electronic communication
Consistent with the definition of degree of electronic communication as the relative amount of communication using ICT
rather than face-to-face (Gibson & Gibbs, 2006; Kirkman & Mathieu, 2005), and following the approach taken in existing research
(Maynard et al., 2012), we assessed degree of electronic communication by asking participants to report on the percent of total
interactions with others for their job that occur using different communication media such as face-to-face, email, phone, instant
messaging, videoconferences and webconferencing. The figures reported had to total 100%. We computed the degree of electronic
communication as the percent of interaction using non-face-to-face methods. Degree of electronic communication varied
between 5% and 100% (mean = 58.08%, SD = 21.53%). Email and phone were the communication media most widely used by
participants.
2.2.2. Leadermember exchange (LMX)
We measured leadermember exchange using Scandura and Graens (1984) 7-item scale. Employees rated the quality of their
relationship with their supervisor. We used employee ratings of LMX because our theorizing specifically focuses on employees
perceptions of the quality of the LMX relationship with their supervisor. In addition, past reviews of the LMX literature have
indicated that supervisor ratings are more likely to provide socially desirable responses than employee ratings about LMX
relationships between supervisors and their employees (Gerstner & Day, 1997; Golden & Veiga, 2008; Graen & Uhl-Bien, 1995;
Howell & Hall-Merenda, 1999). Sample items included: My supervisor understands my problems and needs, and My
supervisor would use his or her influence to help me solve problems in my work. Coefficient alpha was 0.90.
2.2.3. Psychological empowerment
We measured psychological empowerment using Spreitzers (1995) 12-item scale comprising four dimensions of three items for
each dimension: meaning (e.g., My job activities are personally meaningful to me), competence (e.g., I am confident about my
ability to do my job), autonomy (e.g., I have significant autonomy in determining how I do my job), and impact (e.g., My impact on
what happens in my work team is large). Consistent with theory and past research (e.g., Chen & Klimoski, 2003; Spreitzer, 1995;
Spreitzer, 1996; Zhang & Bartol, 2010) that has conceptualized and measured psychological empowerment as an overall construct
comprised of four subdimensions, the fit indices for four first-order factors and one second-order factor demonstrated good fit [2(50,
N = 353) = 94.96, p b .001, non-normed fit index (NNFI) = .98, comparative fit index (CFI) = .96, root mean square error of
approximation (RMSEA) = .05]. We therefore averaged the four dimensions into a single psychological empowerment scale.
Coefficient alpha was 0.88.
2.2.4. Organizational commitment
We measured organizational commitment using Allen and Meyers (1990) 8-item affective commitment scale. Participants
rated the degree to which they were affectively committed to their organizations. Sample items included: I would be very happy
to spend the rest of my career with this organization, and This organization has a great deal of personal meaning for me.
Coefficient alpha was 0.81.
2.2.5. Job satisfaction
We measured job satisfaction using Hackman and Oldhams (1976) 3-item scale. Sample items include: Generally speaking, I
am very satisfied with my job, and I am generally satisfied with the feeling of worthwhile accomplishment I get from doing this
job. Coefficient alpha was 0.92.

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2.2.6. Job performance

We measured job performance using eight items representing the task and team performance domain items from the
Welbourne, Johnson, and Erezs (1998) role-based performance scale: task performance (e.g., Quality of work output) and team
performance (e.g., Working as part of a work team). We focused on task and team performance because we believed that these
two dimensions have general applicability to the job-related performance of the jobs represented in our sample. We asked the
supervisors nominated by each participant to rate the job performance of the focal person and matched the performance
outcomes with focal responses by using participant ID numbers. Supervisor ratings showed an acceptable level of agreement
(rwg = .96). We therefore used the aggregated supervisor ratings as the measure of performance for each individual. Coefficient
alpha was 0.92.
2.2.7. Control variables
We included three control variables that we believed were theoretically relevant to testing the model for both performance
and attitudinal work outcomes. First, we controlled for job tenure, since employee attitudes and performance can be influenced
by the length of time employees have been in their jobs (e.g., Avolio, Waldman, & McDaniel, 1990; Natarajan & Nagar, 2011). In
addition, we controlled for age, since different generations are likely to respond differently to using technology (e.g., Bargh &
McKenna, 2004). Finally, we controlled for the type of job with regard to the extent to which the job requires communication
with others (job communication demands). This is because for jobs that generally require minimal communication with others,
degree of electronic communication is likely to be less important for shaping work performance and attitudes compared to its
importance in a job that requires a high level of communication with others.
We developed a job communication demands score for each participants job using information from the Occupational
Information Network (O*NET) database (Peterson, Mumford, Borman, Jeanneret, & Fleishman, 1999). O*NET is a comprehensive
database that serves as a primary source of validated occupational information, including job descriptions, for a broad range of
jobs in different occupations. Hence, O*NET provides information on the relative score of different jobs along several important
job characteristics. Two independent raters matched occupation titles from our sample with O*NET job titles so that data from
O*NET related to a jobs characteristics could be used to compute a job communication demands score for the each job in our
sample. They agreed on the codes for 93.3% of cases. In the cases where there was not initial agreement, they met to discuss
and come to final agreement. In this way, the coders reached agreement on all the coded jobs. We used the scores for job
characteristics assigned to jobs in O*NET that indicate the extent to which the jobs work activities involve communicating with
persons outside the organization; communicating with supervisors, peers, or subordinates; and establishing and maintaining
interpersonal relationships. We computed the job communication demands score for each job as the mean of the jobs score
on these three O*NET job characteristics. Coefficient alpha was 0.73 and an exploratory factor analysis on the three job
communication demands items yielded a single factor with factor loadings greater than .70.
2.3. Analyses
2.3.1. Discriminant validity of constructs
We first performed confirmatory factor analysis (CFA) on the LMX, psychological empowerment, job satisfaction, and
organizational commitment variables to establish their discriminant validity. This was important because all of these variables
were from the same source. We compared two models: (1) a one-factor model where all of the items for the four scales
mentioned above where loaded on one factor [2(405, N = 353) = 3947.62, p b .001, NNFI = .44, CFI = .47, RMSEA = .16];
and (2) a four-factor model with LMX, job satisfaction, and organizational commitment loaded on separate factors and the
empowerment dimension modeled as a second-order factor composed of the four first-order factors of meaning, competence,
autonomy, and impact [2(399, N = 353) = 1068.84, p b .001, NNFI = .89, CFI = .90, RMSEA = .07]. The first model
demonstrated poor fit to the data. The second model, in which psychological empowerment was modeled as a second order
factor, showed good fit to the data. This confirmed the discriminant validity of these variables.
2.3.2. Analytic strategy
We tested the study hypotheses using mean-centered predictor variables (Aiken & West, 1991) and a path analytic approach
(Edwards & Lambert, 2007; Preacher et al., 2007). As discussed in the literature (Cole, Walter, & Bruch, 2008; Edwards & Lambert,
2007; Preacher et al., 2007), this approach overcomes some of the methodological shortcomings of earlier approaches such as
those based on the causal steps approach of Baron and Kenny (1986). Specifically, we used the SPSS macro developed by Preacher
et al. (2007: MODMED) that allows for several tests related to the proposed theoretical model. The first test involves a mediator
regression model that regresses the mediator on the controls, predictor variables and their interaction. This allowed us to test
Hypothesis 1, which predicted that degree of electronic communication would moderate the LMX-psychological empowerment
relationship. The second test is a dependent variable model that regresses the dependent variable on the controls, predictor
variables, their interaction, and the mediator variable. This allowed us to confirm that psychological empowerment was positively
related to employee outcomes. Although, this was not presented as a formal hypothesis, it was expected based on past research
findings. It is also a necessary step in demonstrating that the interactive effect of LMX and degree of electronic communication
is indirectly related to employee work outcomes through the mediating effect of psychological empowerment (mediated
moderation prediction in Hypothesis 2). The third and final test uses a bootstrapping procedure to test for conditional indirect

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effects. We used this to test the conditional indirect effect of LMX on employee work outcomes through psychological
empowerment at low and high values of the moderator variable (Hypothesis 2), using bootstrapping with 5,000 draws.

3. Results
3.1. Test of hypotheses
Table 1 shows the descriptive statistics and bivariate correlations among the study variables. The results of the analysis using
the Preacher et al. (2007) macro, described above, for each dependent variable are shown in Table 2 (mediator variable model),
Table 3 (dependent variable model), and Table 4 (bootstrapping procedure to test conditional indirect effects).
Hypotheses 1 predicted an interaction effect between LMX and degree of electronic communication to influence psychological
empowerment. This interaction effect is shown in Table 2 (mediator variable model). Consistent with this hypothesis, there was a
significant interaction effect between LMX and degree of electronic communication on psychological empowerment (B = .005,
p b .01). We plotted the interaction using the plotting procedures suggested by Aiken and West (1991). Fig. 2 shows the
moderating effect of degree of electronic communication on the relationship between LMX and psychological empowerment at
two levels of degree of electronic communication (mean plus and minus one standard deviation). As predicted, degree of
electronic communication positively moderated the LMX-psychological empowerment relationship. Simple slopes analysis
(Aiken & West, 1991) showed that under conditions of high degree of electronic communication, the relationship between LMX
and psychological empowerment was significant and more strongly positive (B = .455, p b .001) than under conditions of low
degree of electronic communication (B = .221, p b .001).
Consistent with past research findings (for a review, see Seibert et al., 2011), psychological empowerment was positively and
significantly related to job satisfaction (Table 3 dependent variable model: B = 1.075, p b .001), organizational commitment
(B = .624, p b .001), and job performance (B = .125, p b .05). These findings meet an important condition for Hypothesis 2,
which predicts a mediated moderation effect (Edwards & Lambert, 2007; Preacher et al., 2007) in which the interactive effect of
LMX and degree of electronic communication is indirectly related to job satisfaction, organizational commitment, and job
performance through psychological empowerment. We used a different macro by Preacher and Hayes (2008: INDIRECT) that uses
a bootstrapping approach to test the significance of this indirect effect for each dependent variable. The results showed that all
three indirect effects were significant: job satisfaction (B = .006, p b .05), organizational commitment (B = .003, p b .001), and
job performance (B = .001, p b .05).
We then proceeded to test the conditional indirect effects of LMX through psychological empowerment on job satisfaction,
organizational commitment, and job performance at different levels of degree of electronic communication (Hypothesis 2a, 2b,
and 2c respectively). We used the bootstrapping procedure, described earlier, to probe the indirect effect at different levels of the
moderator variable. We expected the indirect effect of LMX on employee work outcomes through psychological empowerment
would become more strongly positive as degree of electronic communication moved from a lower to a higher value. We tested
this indirect effect at values of degree of electronic communication equal to the mean plus and minus one standard deviation
(Table 4).
For job satisfaction, the results showed that the indirect effect of LMX on job satisfaction through psychological empowerment
was significant for a value of degree of electronic communication equal to one standard deviation below the mean (B = .237,
p b .001) and was still significant, but stronger, for LMX at one standard deviation above the mean (B = .489, p b .001). Hence,
Hypothesis 2a was supported. Following the approach used in recent published research (Cole et al., 2008; Greenbaum, Mawritz,
& Eissa, 2012), we used this macro function to probe the indirect effect at values of the moderator outside the values of one
standard deviation above and below the mean. The indirect effect became progressively weaker as degree of electronic
communication decreased and nonsignificant at values at or below 1.7 standard deviations below the mean (degree of
electronic communication = 21.46).

Table 1
Descriptive statistics and correlations.

1
2
3
4
5
6
7
8
9

Job tenure
Age
Job communication demands
Degree of electronic communication
Leader member exchange
Psychological empowerment
Organizational commitment
Job satisfaction
Job performance

Mean

SD

2.96
28.18
75.63
58.08
3.88
3.83
3.13
3.16
4.34

2.40
4.54
8.87
21.54
.83
.65
.81
1.13
.50

.44
.33
.35
.13

.55
.64
.15

.63
.09

.07

.30
.05
.03
.11
.09
.06
.02
.04

.05
.05
.09
.01
.05
.03
.18

.04
.03
.09
.03
.04
.06

.03
.04
.05
.00
.03

Note: Means, standard deviations, and correlations for variables were calculated between individuals (n = 353).
p b .05.
p b .01.

N.S. Hill et al. / The Leadership Quarterly 25 (2014) 772783

779

Table 2
Regression results for mediator model predicting psychological empowerment.
Model

Constant
Job tenure
Age
Job communication demands
Degree of electronic communication
LMX
Degree of electronic communication LMX
R2

SE

.239
.003
.005
.005
.001
.338
.005
.219

.347
.014
.007
.004
.002
.039
.002

.689
.245
.686
1.471
.570
8.764
3.006

Note: n = 353. Unstandardized regression coefficients are reported, SE = standard error.

p b .01.
p b .001.

In support of Hypothesis 2b, we found a similar pattern of results related to organizational commitment. The indirect effect of
LMX on organizational commitment was significant at one standard deviation below the mean (B = .138, p b .001) and also
significant, but more strongly positive at one standard deviation above the mean (B = .284, p b .001). This indirect effect became
progressively weaker as degree of electronic communication decreased and nonsignificant at values at or below 1.7 standard
deviations below the mean (degree of electronic communication = 21.46). Finally, the indirect effect of LMX on job performance
followed the same pattern. This effect was significant at one standard deviation below the mean (B = .028, p b .05) and also
significant, but stronger, at one standard deviation above the mean (B = .055, p b .05). The indirect effect became progressively
weaker as degree of electronic communication decreased and nonsignificant at values at or below 1.2 standard deviations
below the mean (degree of electronic communication = 32.23). Hence, Hypothesis 2c was also supported.
3.2. Supplemental Analysis
We conducted supplemental analysis in order to rule out rival models linking LMX, psychological empowerment and
employee work outcomes. Specifically, we tested a second stage moderation model where degree of electronic communication
moderated the relationships between psychological empowerment and employee work outcomes. We also tested a direct effect
model with degree of electronic communication moderating the relationships between LMX and employee work outcomes. Our
analysis showed no significant second stage or direct effect moderation, suggesting that the conditional indirect effect of LMX on
employee outcomes through psychological empowerment is best accounted for by a first stage moderation model.
4. Discussion
The purpose of this study was to gain an understanding of the role that leaders play in promoting positive psychological states
and work outcomes among their employees that use a high degree of electronic communication for work interactions. The
relative lack of research attention to this area is surprising, given the demonstrated challenges associated with heavy reliance on
electronic communication and its growing use in organizations (Gibson et al., 2011; Kirkman et al., 2012; Martins et al., 2004;
WorldatWork, 2006). Our findings make several important research contributions.
First, this investigation responds to recent calls to identify boundary conditions of the relationship between LMX and work
outcomes (e.g., Chang & Johnson, 2010; Dulebohn et al., 2012; Tangirala, Green, & Ramanujam, 2007; Volmer, Spurk, & Niessen,
Table 3
Regression results for dependent variable model predicting employee work outcomes.
Job satisfaction

Predictors

SE

Constant
Job tenure
Age
Job communication demands
LMX
Degree of electronic communication
Degree of electronic communication psychological empowerment
Psychological empowerment
R2

3.268
.023
.003
.001
.1205
.001
.002
1.075
.434

.518
.021
.011
.005
.064
.002
.003
.081

t
6.312
1.010
.280
.150
1.893
.5462
.571
13.210

Note: n = 353. Unstandardized regression coefficients are reported, SE = standard errors.

p b .05.
p b .01.
p b .001.

Organizational
commitment
B
3.138
.007
.009
.003
.101
.003
.001
.624
.316

SE
.409
.016
.008
.004
.050
.002
.002
.064

Job performance

7.680
.434
1.035
.691
2.007
1.849
.649
9.718

4.684
.001
.020
.003
.029
.000
.000
.125
.067

SE
.308
.012
.007
.003
.039
.001
.002
.048

t
15.213
.060
2.954
.825
.754
.189
.033
2.581

780

N.S. Hill et al. / The Leadership Quarterly 25 (2014) 772783

Table 4
Results of bootstrapping procedure to test conditional indirect effects at different levels of degree of electronic communication.
Job satisfaction
Value of degree of electronic communication variable
+1 SD (79.62)
Mean
1 SD (36.54)

Indirect effect
.489
.363
.237

Organizational commitment

SE

.069
.050
.063

7.085
7.298
3.796

Indirect effect

SE

.284
.211
.138

.045
.033
.038

6.344
6.489
3.662

Job performance
Indirect effect

SE

.055
.041
.028

.023
.017
.013

z
2.412
2.438
2.061

Note: n = 353. SD = standard deviation, SE = standard errors, bootstrap sample size = 5,000.
p b .05.
p b .001.

2012). We extend LMX theory by showing that degree of electronic communication is an important boundary condition for
understanding the relationship between LMX, psychological empowerment and employee work outcomes. We found that degree
of electronic communication amplified the positive relationship between LMX and employee psychological empowerment. This
resulted in a mediated moderation effect in which the indirect effect of LMX on employee work outcomes (job satisfaction,
organizational commitment, and job performance) through psychological empowerment was more strongly positive at higher
levels of electronic communication.
Second, these findings also contribute to the broader literature on leadership in virtual work environments. Consistent
with past research that has examined the interaction of LMX with other virtual work characteristics, our results point to the
heightened importance of leadership in promoting positive work outcomes in more virtual work environments. For example,
Golden and Veiga (2008) found that the relationship that LMX had with job satisfaction, organizational commitment, and job
performance was stronger for employees that spent a greater proportion of their average week working away from the office.
Gajendran and Joshi (2012) focused on team geographic dispersion and showed that it amplified the relationship between LMX
and team member influence on team decisions. In addition, research related to virtual teams has also shown that other types of
leadership, such as transformational leadership, have a stronger influence on team outcomes when team geographic dispersion
is high (e.g., Joshi et al., 2009). This study further contributes to research in this area by demonstrating that electronic
communication is another important virtual work characteristic that determines the impact of leadership.
Although we theorized in this study that degree of electronic communication moderates the LMX-psychological
empowerment relationship, another theoretically plausible explanation for the interaction between these two variables is that
LMX moderates the relationship between degree of electronic communication and psychological empowerment. This is based on
theories of communication such as the social identity model of deindividuation effects (SIDE: Spears & Lea, 1992) and the
hyperpersonal model (Walther, 1996) that suggest that the way in which individuals use technology to interact with others, and
hence the impact of electronic communication (positive or negative) on employee outcomes, is influenced by important
contextual factors. These theories particularly focus on factors that influence the extent to which individuals identify with the
group or collective to which they belong. They argue that a salient collective, rather than individual, social identity can substitute
for the absence of social cues transferred by the communication medium to convey social presence and motivate individuals to
pursue shared, rather than individual interests (Haslam, 2001; Rogers & Lea, 2005). It is possible that high quality LMX promotes a
sense of collective identity with their group, which in turn results in employees more active use of electronic communication to
engage with others and participate in the organization in a way that promotes psychological empowerment (Kahai et al., 2012;
Suh et al., 2011). Hence, despite the potential for greater reliance on electronic communication to negatively impact psychological

Fig. 2. Moderating effect of degree of electronic communication on the relationship between leadermember exchange and psychological empowerment.

N.S. Hill et al. / The Leadership Quarterly 25 (2014) 772783

781

empowerment, high quality LMX might mitigate or even reverse this negative effect. The pattern of the interaction effect between
LMX and degree of electronic communication found in this study is consistent with this notion. Under conditions of high quality
LMX, the relationship between degree of electronic communication and psychological empowerment was more strongly positive
than when LMX was low (relationship insignificant). However, it was not possible within the scope of this study to statistically
differentiate between degree of electronic communication and LMX as the moderator in their interactive effect on psychological
empowerment. We therefore encourage future research that can help to disentangle these two different moderating effects and
the theoretical mechanisms that underlie them.
This research also raises an interesting future research question of whether the findings of this study can be applied to virtual
teams, and particularly to those who lead virtual teams using varying degrees of electronic communication. Although virtual team
researchers have focused increasing attention on understanding the role of leaders in enhancing team and team member
outcomes in virtual teams, very few studies have examined virtual team leadership in conjunction with different degrees and
types of electronic communication in an organizational setting (e.g., Hoch & Kozlowski, 2012; Rapp, Ahearne, Mathieu, & Rapp,
2010). Future research might also explore how the interaction between LMX and degree of electronic communication with the
team leader for different members of the team influences team member outcomes in the team.
The results of this study also have important practical implications. Given the increased use of electronic communication by
organizational members and the documented challenges of interactions that are not face-to-face, our findings should be of strong
interest to organizations. They point to a critical role for supervisors in promoting psychological empowerment and positive work
outcomes among their employees whose work is characterized by a high degree of electronic communication. In particular,
organizations should build awareness among supervisors of the important role they can play to ensure effective work outcomes
among their employees that operate to a large extent in this mode. They should encourage these supervisors to forge strong
relationships with their employees, so that employees feel that they are supported and also valuable members of their organizations.
Finally, given research that has shown that LMX has greater influence on employees who operate in work environments characterized
by a high degree of electronic communication when the communication frequency between the leader and member is high
(Gajendran & Joshi, 2012), supervisors should be advised to engage in regular and active communication with their employees.
Despite the theoretical and practical contributions of this study, it is not without limitations. First, all the study data, with the
exception of job performance, were collected from a single sourcethe employee. This was because our theoretical arguments
were based on the employees, rather than the supervisors, perception of the quality of his or her LMX relationship, and we were
interested in linking those perceptions to employee work attitudes as well as performance. Also, as we noted in our description of
the LMX measure, supervisor ratings might not adequately align with employee ratings of LMX. Although we conducted analysis
to ensure the discriminant validity of the perceptual measures, it is possible that common method variance inflated the
relationship between these variables. However, in support of the validity of our findings, an important focus of the paper was
interaction effects and there is research to show that common method variance will tend to attenuate interaction effects (Evans,
1985). Hence, in the case of common method variance, the interaction effects found in this study would be an underestimation of
the true effects.
Our focus on employee perception of LMX points to another interesting direction for future research, which is to gain a better
understanding of how the use of electronic communication to facilitate supervisor-employee interactions influences the
development of LMX. Although this investigation was outside the scope of this current study, it is critical a more complete
understanding of the impact of electronic communication on LMX in electronically-enabled work environments. On the one hand,
researchers have suggested that reduced face-to-face contact between supervisors and employees can create a form of
psychological distance that reduces the quality of their dyadic relationship (Antonakis & Atwater, 2002; Gajendran & Harrison,
2007; Gajendran & Joshi, 2012; Golden & Fromen, 2011). Along these lines, Golden and Fromens (2011) study of employees with
managers who telework or work completely virtually showed that these employees reported less positive work experiences,
including feedback and professional development from their managers. These are important factors that contribute to the
formation of LMX. On the other hand, other researchers have suggested that the potential for negative impact can be mitigated by
using technology in a way that fosters communication and trust (Avolio & Kahai, 2003; Gajendran & Joshi, 2012). Further, a
meta-analysis by Gajendran and Harrison (2007) did not show any significant impact to the quality of relationship between
supervisor and employees who telecommuted. Hence, future research that explores the way in which LMX develops in
electronically-enabled work environments would be worthwhile.
Second, following previous research, we measured the use of electronic communication using self-reports (e.g., Gibson &
Gibbs, 2006; Kirkman, Rosen, Tesluk, & Gibson, 2004; Maynard et al., 2012). However, participants may not have accurately
estimated their use of electronic communication, resulting in error in this measure. Although self-reports of the extent of use of
communication media have been shown to correlate highly with actual use (Martins & Kellermanns, 2004; Taylor & Todd, 1995),
future studies using both self-reports and objective measures of the use of electronic communication may allow more accurate
analysis of the predicted relationships. Finally, we followed previous research that focused on degree of electronic communication
as an objective measure (Gibson & Gibbs, 2006; Maynard et al., 2012). However, it is possible that employees, based on their
individual differences and other factors, might have different responses to the use of the same communication media (Carlson &
Zmud, 1999). Hence, research that examines employees subjective perception of using electronic communication and its impact
on the outcomes examined in this study might be a useful future direction.
In conclusion, this study adds to our understanding of the role supervisors can play to promote positive psychological states
and effective work outcomes for their employees who engage in a high degree of electronic communication. Our findings
demonstrate that degree of electronic communication amplifies the positive relationship between LMX and psychological

782

N.S. Hill et al. / The Leadership Quarterly 25 (2014) 772783

empowerment, as well as the indirect relationship between LMX and employee work outcomes through psychological
empowerment. We hope that this study will promote future research that addresses the still relatively underexplored question of
how leadership and electronic communication work together to influence employee work outcomes.
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