Research on the impact of LMX leadership theory on mutual trust and organisational commitment of employees in Bosnia and Herzegovina

Abstract

The paper presents the theoretical foundations of leadership based on the LMX exchange leader-member theory which essentially involves leadership process where a continuous and creative interaction between leaders and followers is at the centre of attention, during which the leader, among other things, affects the degree of mutual trust and organisational commitment and the quality of relationships in his/her organisation, which actually has a direct impact on organisational performances, effectiveness of the organisation's business and its market positioning. Also, the paper presents the results of research conducted in organisations in Bosnia and Herzegovina, which undoubtedly point to the fact that the dimensions of leadership based on the LMX exchange leader-member theory, is strongly correlated with the dimensions of mutual trust and organisational commitment, and to have a significant positive impact on them, and therefore on organisational performances and effectiveness of business organisations that were included in this study.