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Wilhelm, Herd, and Steiner (1993) investigated the relationship between LMX and the
employees’ organisational outcomes using 141 supervisor-subordinate dyads. The
participants were from manufacturing establishments. The research established that
LMX had a negative relationship with employees’ turnover intentions. Subsequent
research has also established the LMX to be significant and negatively related to the
employee’s turnover intentions (Ansari et al., 2008; Bauer et al., 2006).
Psychological contract theory explores the mutual beliefs, perceptions and informal
obligations between employees and management (Tomprou, Nikolaou, & Vakola,
2012). According to this theory employees show greater job satisfaction and
commitment when their job expectations are met and lowest when their expectations
are violated (Rousseau, 1995). Further, if the dyads perceive the relationship as
mutual, employees show a higher degree of satisfaction (Gerstner & Day, 1997).
Employee satisfaction is found to be negatively related to employee turnover intentions
and positively related to the organisational commitment (Aydogdu & Asikgil, 2011).
Empirical evidence also supports the view that LMX is negatively related to turnover
intent (Bauer et al., 2006; Sparrowe, 1994; Vecchio, 1998).
It is perceived that higher levels of communication between supervisors and
subordinates reduce turnover intentions of subordinates (e.g. Minsky, 2002). This
observation was supported by Macky and Boxall (2007) who found high work
performance practices, such as effective communication and organisational support,
increased job satisfaction, and thereby reduced employee turnover intentions. Further,
Minsky (2002) noted that higher levels of communication can reinforce higher
agreement between individuals. The study relates this prediction to the social identity
theory which states that, when subordinates perceive they are members of the same
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