Abstract: Leader-member exchange differentiation was defined as the degree to which members have different exchange relationship with their leader when compared to other members of the same work group. Despite its core element in leader-member exchange theory, compared with leader-member exchange quality, this topic has only received scant attention in prior literature. Recent studies have illustrated its great salience to individual and group process and outcome. Based on existing theoretical and empirical studies, this article reviewed LMX differentiation research in an effort to assess the current state of the literature. We investigated the research history, conceptualization and measurement of LMX differentiation and summarized the findings related to its antecedents and consequences as well as the various theoretical basis used in prior studies. We concluded with an agenda for future research on this area.

Key words: leader-member exchange differentiation, leader-member exchange theory, team, multi-level study