ABSTRACT
Studies on leader effectiveness nowadays focus on the relationship between leaders and subordinates. One of the key variables in this relationship is trust. Previous research shows that, both cognitive and affective trusts may impact leader effectiveness directly or mediated through Leader-Member Exchange (LMX). This current research aims to test the probability of these two potentials in two different organizational settings (government companies and private companies). The data were gathered from 100 employees from government companies and 131 employees from private companies. The analysis reveals that (a) cognitive trust and affective trust are positively associated with leader effectiveness, in both government companies and private companies; (b) LMX is positively associated with leader effectiveness in private companies, but it has no relationship in public companies; and (c) LMX fully mediates the relationship between cognitive trust and leader effectiveness in private companies, but only partially mediates the relationship between affective trust and leader effectiveness in private companies. The study shows that there are different quality relationships between leaders and subordinates in government companies and private companies, which will affect leader effectiveness. Theoretical and practical implications will be discussed.
