This study examined those factors that contribute to a better working relationship between a leader and a subordinate or make that working... Show moreThis study examined those factors that contribute to a better working relationship between a leader and a subordinate or make that working relationship challenging. Specifically, we investigated the effect of ethnic configuration within the leader-subordinate dyad and perceived dissimilarity on Leader-Member Exchange (LMX) and trust. Communication style deviation was tested as a mediator between actual, as well as perceived dissimilarity and relational outcomes. Cultural Intelligence (CQ) was included as a moderator, the presence of which could ameliorate the negative impact of dissimilarity on LMX and trust. In order to test these predictions, a survey was administered to 614 participants. Participants were working students at an urban, Midwestern, public university. Results showed that in presence of low CQ among respondents, there was a negative impact of ethnic dissimilarity on LMX. However, no impact of ethnic similarity/dissimilarity on trust was found. Specific dyad composition of the leader-subordinate dyad had no significant impact on LMX or trust. Finally, communication style deviation partially mediated the relationship between perceived dissimilarity and the two outcome variables of LMX and trust. These findings revealed that in order to build a high-quality relationship within an ethnically diverse leader-subordinate dyad, both CQ and alignment in communication style are of consequence. Show less