This study examines the influence of leader-member exchange (LMX) on employee organizational identification and the boundary conditions of such relationship. Drawing upon the current literature of social identity theory, we hypothesize that LMX is positively related to organizational identification due to employees’ self-enhancement and uncertainty reduction motivations. Furthermore, job security and POS act as moderators of this positive relationship. We tested our hypotheses using a longitudinal survey with data collected from 306 employees of two companies in Southern China. Implications of our findings for research and practice are discussed.