Exchange through emoting: An emotional model of leader–member resource exchanges

Abstract Despite research suggesting that emotional interactions pervade daily resource exchanges between leaders and members, the leader–member exchange (LMX) literature has predominantly focused on the interplay between general affective experiences and the overall relationship quality. Drawing upon the affect theory of social exchange, we examine why and how discrete exchange imbalance engenders distinct emotions and shapes downstream work behaviors of the members. Results from a preregistered experimental study with 247 participants and an experience sampling study with time‐lagged reports from 79 leaders and 145 members show that a positively imbalanced exchange increases members’ subsequent leader‐directed helping via gratitude (but not via shame) and that a negatively imbalanced exchange increases members’ subsequent risk‐taking via pride (but not via anger). Moreover, the intensity of such effects hinges upon the average level of resource contributions of leader–member dyads. Our research casts light on the role of transient emotions in dynamic resource exchanges between leaders and members and enriches our knowledge of within‐dyad fluctuations of social exchanges.