The impact of leader-member exchange on lodging employees' dynamic capacities: The mediating role of job satisfaction

Firms take precautions with their dynamic capacities in response to rapidly changing and volatile conditions. Leader-member exchange refers to the importance of supervisors' role in shaping employees' work attitudes and job satisfaction. Previous researches on the relation between leader-member exchange and dynamic capabilities obtained mixed results; a call has been made for an examination of dynamic capabilities of lodging firms from the perspective of leader-member exchange. This research predicts that leader-member exchange is associated with dynamic capabilities and higher level of job satisfaction. Thus, this study examines the impact of five-star hotel employees' leader-member exchange on the dynamic capabilities of a hospitality organization and the mediation role of job satisfaction between leader-member exchange and dynamic capabilities. Results from five hotel teams in Istanbul with 390 employees show that job satisfaction has a meaningful and positive impact on dynamic capabilities. Leader-member exchange has a statistically significant impact on dynamic capabilities and job satisfaction partially mediating the relationship between leader-member exchange and dynamic capabilities. This study also provides valuable recommendations on how to assess the service quality of lodging firms by assessing their dynamic capabilities. Specifically, Istanbul's lodging firms should focus on job satisfaction to improve the dynamic capability of their employees.