AN INVESTIGATION OF THE RELATIONSHIP BETWEEN LEADER–MEMBER EXCHANGE AND KNOWLEDGE HIDING: THE MODERATED MEDIATING EFFECTS OF EQUITY SENSITIVITY AND MORAL DISENGAGEMENT

Abstract

Knowledge hiding is a significant threat to the operational performance of knowledge driven organizations operating in competitive environments. Grounded in Social Exchange Theory, this study proposes a moderated mediation model to examine the influence of Leader Member Exchange (LMX) on Knowledge Hiding Behavior (KHB) through Moral Disengagement (MD) with Equity Sensitivity (ES) as a boundary condition. To minimize common method bias, data were collected from 523 employees in Pakistan's telecommunications sector using a three wave, time-lagged survey design. The results support the hypothesized model by showing that high quality LMX significantly reduces KHB both directly and indirectly by lowering MD. Moreover, ES strengthens the negative relationship between LMX and MD, resulting in a stronger indirect effect of LMX on KHB among employees with high ES than those with low ES. These findings provide practical insights for reducing unethical knowledge hiding by reinforcing moral self-regulation and incorporating employees' fairness orientations into leadership development and HR practices. Limitations and directions for future research are also discussed.