The Effect of Leader-Member Exchange on Organizational Commitment

Abstract

With the recent increase in number of education industry in Malaysia as well as the Ministry of
Higher Education project to increase it even more in the future, education industries are facing
problem to retain employee and maintain the organizational commitment of their employee. The
purpose of present study is to examine the influence of leader-member exchange (LMX) on the
organizational commitment of education industry in Nilai, Malaysia. A total of 400 questionnaires
were distributed but only 232 questionnaire were found to be usable for this study. The present
study were analysed by using Smart PLS. It was found that affect, loyalty, contribution, narcissism
and ethnocentrism are significantly effect on organizational commitment. It can be concluded that
leader exchange member play important role in organizational commitment especially in education
industry. Limitations of present study are discussed. Implications of the findings and areas for
future research are also presented.