This study examines the influence of leader–member exchange (LMX) on employee organizational identification and job satisfaction. Drawing upon the current literature of social identity theory, we propose a moderated mediation model with organizational identification as the mediator of the relationship between LMX and job satisfaction, and with job security as the moderator on such positive indirect link between LMX, organizational identification, and job satisfaction. We tested our hypotheses using a two‐phase survey data collected from 306 employees of two companies in southern China. Implications of our findings for research and practice are discussed.

Practitioner points

Organizations should train managers to maintain high‐quality LMX.

Appropriate human resource practices for cultivating LMX and employee organizational identification should be adopted.

Supervisors should pay more attention to their LMX quality with those employees having low levels of job security.