The Causal Effects of Leader-Member Exchange on Job Embeddedness towards Enhancing Creative Performance in the Hotel Industry

Abstract

Background and Objectives: The hotel industry in Thailand is highly competitive and hotel employees play important roles in achieving business success. Creativity has therefore become one of the most widely used tools to satisfy customers, and employees’ creative performance is crucial to achieving customer satisfaction. To establish creative performance, it is necessary to investigate its antecedences and causal effects. Thus, this research examines the causal effects of leader-member exchange, which characterizes the relationship between leaders and employees on job embeddedness, which refers to the employee’s devotion to their job role towards enhancing the creative performance of frontline employees in five-star hotels in Bangkok, Thailand.

Methodology: A total of 559 hotel employees participated in this quantitative research study, which utilized a survey questionnaire as the research tool. The responses were analyzed with descriptive and inferential methods, including exploratory factor analysis (EFA) and confirmatory factor analysis (CFA). Structural equation modeling (SEM) analysis was used to test the goodness of fit of the data.

Main results: The results revealed the positive effects of the mediator role that job embeddedness plays between leader-member exchange and creative performance, with structural model test results showing model fit indices having good fit with /df = 1.133, GFI = 0.924, AGFI = 0.905, CFI = 0.993, TLI = 0.992, RMSEA = 0.015, RMR = 0.014.

Discussion: The results indicate that the leader-member exchange factor positively influences the creative performance of frontline employees in the hotel industry and aligns with the principles of the social exchange theory between constructs. It underlines the importance of leader-member exchange in shaping positive attitudes among hotel employees, which translates into enhanced creative performance. Specifically, when frontline hotel employees feel positive emotional connections and loyalty to their supervisors, they are more inclined to contribute high-quality work. Furthermore, the findings suggest that job embeddedness is a valuable tool for fostering increased creativity and support the notion that hotel frontline employees who are deeply embedded in their jobs are more likely to exhibit creative performance. Those who achieve job embeddedness, characterized by a good fit within the job, strong connections with colleagues, and a reluctance to leave, are more likely to generate creative ideas.

Conclusion: The findings have implications regarding the importance of human resources and hotel management in establishing leader-member exchange and promoting job embeddedness in frontline employees for enhancing creative performance to achieve a competitive advantage in the hotel business. Job embeddedness is recognized as crucial for overall work performance. However, these concepts have received limited attention within the tourism and hospitality sector. Consequently, this research addresses this gap, introducing a novel theoretical framework that integrates three key components: leader-member exchange, job embeddedness, and creative performance. Hence, this study makes a substantial contribution to the literature by establishing a new framework for future research on employee motivation related to job embeddedness that encompasses creative performance, applicable across various sectors and segments. Moreover, the findings highlight the need for human resource management and executives to prioritize the establishment of leader-member exchange in their practices. Ultimately, the cultivation of leader-member exchange relationships serves to enhance hotel employee job embeddedness and foster increased creative performance.