Members under the same leader interact in the context of differential leader-member exchange (LMX) and compare their LMXs to understand their triadic relationship (Member A, Member B, and the leader). The literature based on balance theory suggests that when Member A perceives their LMX to be lower than that of Member B, they would interact negatively with Member B. Drawing on social comparison theory, however, we argue that such an upward comparison may motivate Member A to develop a positive relationship with Member B. This research aims to explore the conditions under which a positive relationship can be built up. Since members compare their LMXs independently, we examine the effect of both members’ LMX dyadic comparisons in two studies and find that when both members perceive the other’s LMX as better than their own, they engage more in affiliative behaviors and develop a higher-quality coworker exchange (CWX).
