Leader-Member Exchange and Employee Performance: The Mediating Role of Psychological Safety at Barombong District Office
Published:
2026-11-05Downloads
Abstract
This study examines the relationships among Leader-Member Exchange (LMX), psychological safety, and employee performance in a district-level public organization. The study was conducted at the Barombong District Office, Gowa Regency, South Sulawesi, Indonesia, using a quantitative associative design with a cross-sectional survey. A saturated sampling technique was applied, involving all 41 employees, including civil servants and contract/honorary personnel. Data were collected through a five-point Likert-scale questionnaire and analyzed using Partial Least Squares-Structural Equation Modeling (PLS-SEM) with SmartPLS. The results show that LMX did not have a significant direct effect on employee performance (β = 0.171, p = 0.436). However, LMX had a strong positive effect on psychological safety (β = 0.819, p < 0.001), while psychological safety significantly affected employee performance (β = 0.724, p < 0.001). The indirect effect of LMX on employee performance through psychological safety was also significant (β = 0.593, p = 0.001), indicating an indirect-only mediation pattern. These findings suggest that high-quality leader-employee relationships contribute to performance primarily by creating an interpersonal environment in which employees feel safe to communicate, acknowledge mistakes, express different views, and participate constructively. The study contributes to LMX and Social Exchange Theory by identifying psychological safety as an important mechanism linking relational leadership to employee performance in a frontline local-government context
Keywords:
Psychological Safety Employee Performance Public Sector Local Government MediationReferences
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Copyright (c) 2026 St Fahriza Nur Imtinah, Jannati Tangngisalu, Ampauleng, Yana Fajriah
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