Employee Resilience: Considering both the Social side and the Economic Side of Leader-Follower Exchanges in Conjunction with the Dark Side of Followers’ Personality

The aim of this study is to propose and empirically test theorizing on the alignment of social and economic leader-member (SLMX and ELMX) approaches for employee resilience. Additionally, we explore a new approach to LMX relationships that views follower narcissism as a trait that is adaptive in certain contexts. The findings of our polynomial regression analysis with surface response analysis indicate that for LMX to optimally contribute to employee resilience, SLMX needs to dominate over ELMX. However, for narcissistic followers, employee resilience is strongest at both the low SLMX-low ELMX end of the spectrum and at the high SLMX-high ELMX end of the spectrum, thus questioning the usefulness of an average or imbalanced shaping of LMX for narcissists’ thriving in a dynamic organizational environment. Our findings imply that by developing and nurturing reciprocal trust-based long-term relations with their followers, leaders can strengthen employee resilience. When being confronted with narcissistic followers, leaders need to either embrace an ambidextrous approach additionally emphasizing the transactional nature of the relationship, or a laissez-faire approach to foster employees’ effective dealing with change and setbacks at work.