The basis for establishing a deeper exchange relationship with in-group members is the leader's control over outcomes that are desirable to the followers.

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The theory of leader-member exchange (LMX) suggests that leaders establish different levels of exchange relationships with their followers based on their mutual trust, respect and obligations. The depth of these relationships depends on the leader's ability to provide resources, opportunities and support that are valued by the followers, such as praise, challenge, feedback, promotions, recognition, and autonomy. In-group members are those who develop a high-quality and personalized exchange relationship with the leader, while out-group members receive a lower level of attention and support. Therefore, the basis for LMX is the leader's control over outcomes that are desirable to the followers, as this creates a sense of reciprocity and dependence that fosters an ongoing relationship.

The Basis for Establishing a Deeper Exchange Relationship with In-Group