Social Exchange Theory: A Critical Review with Theoretical Remedies

Social exchange theory is one of the most prominent conceptual perspectives in management, as well as related fields like sociology and social psychology. An important criticism of social exchange theory; however, is that it lacks sufficient theoretical precision, and thus has limited utility. Scholars who apply social exchange theory are able to explain many social phenomena in post hoc manner but are severely limited in their ability to make useful a priori predictions regarding workplace behavior. In this review, we discuss social exchange theory as it exists today and identify four critical issues within the social exchange paradigm that warrant additional consideration. The four concerns, around which we…