Economic and social LMX and innovative work behaviour: the moderating effect of paradox mindset

Purpose - In this study the authors investigate the relationship of both social (SLMX) and economic (ELMX) leader–member exchange with innovative work behaviour (IWB) and the potential moderating effect of having a paradox mindset. A paradox mindset facilitates the recognition of tensions and the integration of competing demands and goals, which may fuel IWB. Design/methodology/approach - At two points in time the authors gathered survey data from employees working in the mid and back office of a Dutch bank. Findings - SLMX associates with innovative behaviour, whilst ELMX does not. However, when paradox mindset is included as a moderator, the authors find negative interaction effects of paradox mindset with both ELMX and SLMX. Practical implications - The findings indicate that management should be aware of the impact that having a paradox mindset has on the innovative work behaviour of employees. Managers are well advised to assess the extent to which an employee entertains a paradox mindset and adjust the type of leadership appropriate to the situation, and in particular adjust the intensity of their exchange relationship with these employees. Originality/value - Paradox mindset acts as a substitute for an employee's social relationship with the leader, as paradox mindset captures most of the variation in IWB, thereby drawing influence away from SLMX. This finding complements studies showing that a person's mindset can greatly influence innovative work behaviour.