Colleagues,
Francis Yammarino and his students concluded in their Leadership Quarterly Yearly Review article (2012) 23, 1080-1103 that LMX-7 measures require a special aggregation formula for a business unit or an action team within a business unit measurement. They cite many inadequate formulas and find none acceptable. They fail to review a formula which works (cited in Graen's chapter on the new Leadership Motivated Exchange theory of teams in the New Oxford Handbook of Leadership (2013 and available).
This formula takes into account (1) the relative contribution of each dyad, (2) the "unique strategic alliance" within each dyad and (3) the relative demands on the team or business unit.
As most managers realize, each team requires a set of unique strategic alliances (USA) between critical members including the leader. Once this set is developed, additional USAs provide greater productive capacity. Teams are wise to develop a strong bench to backup the stars. We do know how to do this right. Going from dyads to work units that are interdependent and face common challenges requires that context be measured and included in the formula (see Graen's new book on Management of Team Leadership in Extreme Contexts (IAP, 2012).
George Graen
jag