The Leader Assimilation and The Leader-Member Exchange Development Process- A Longitudinal Case Study

The business environment is in constant change and the organizations hire and relocate leaders at a growing pace. The task of taking charge and make a successful leader transition is not, however, an easy task and especially external leaders have many obstacles to overcome. The aim of this study is to recognize the processes by which the new leader adapts to a new organization and makes a successful leader transition. The frames of reference used are the assimilation theory and the Leader-Member Exchange (LMX) theory. The study aims to discover how the leader assimilation and the LMX relationships develop and how do those factors have an affect on leader transitions. There was also a development intervention carried out to help the new leader adapt and the effects of that intervention are also examined. The study was conducted as a case study and there was a development intervention carried out prior to and during the organizational entry of the new leader. The data was collected as interviews (N=21) conducted on the new leader and the subordinates during the intervention with two rounds of interviews; the leader was interviewed 5 months after the organizational entry and for the second time approximately 8 months in her new position. The subordinates were interviewed prior to the entry of the leader and approximately 8 months after the entry. The main finding of the study is the connection between the leader assimilation and the development of the LMX. The study also sheds light on the development processes and the dimensions related to leader assimilation and the LMX relationships. A conclusion can be drawn that as the leader develops LMX relationships and gains acceptance from subordinates as well as learns the organization, the required tasks and the leader role, he can make a successful leader transition and feel assimilated.