The Relationship Between Leader-Member Exchange and Team Cohesion: A Multi-Team Study in the Croatian Banking Sector

This study explores the relationship between Leader-Member Exchange (LMX) quality and team cohesion within the Croatian banking sector. Drawing from relationship-based leadership theories, we investigate how the quality of dyadic relationships between leaders and team members influences team cohesiveness in a hierarchical, regulated organizational environment. Using validated instruments (LMX-7 and adapted Group Environment Questionnaire), we surveyed 76 employees across 10 teams. Results demonstrate a strong positive correlation between LMX quality and team cohesion (r = 0.854, p = 0.002). Our findings contribute to understanding how relationship-based leadership practices can foster stronger team dynamics in knowledge-intensive organizational contexts, with implications for leadership development in banking and similar professional services sectors.