TY - JOUR
T1 - Transformational entrepreneurship and its effect on readiness for change, psychological capital, and employee performance
T2 - Evidence from an Indonesian bank
AU - Gunawan, Michael
AU - Rahmawati, Santi
AU - Wijayanti, Retno
AU - Chrisanty, Febri Nila
AU - Soetjipto, Budi W.
AU - Rachmawati, Ani Wahyu
N1 - Funding Information:
The author would like to thank the faculty members at the University of Indonesia for their support and providing a good research environment. Next, we would like to express our appreciation for the state-owned bank in Indonesia that participated in the study. Furthermore, thank you' to the Research Synergy Foundation for the recommendations and support in making this research more successful.
Publisher Copyright:
© 2021 Gunawan M et al.
PY - 2021
Y1 - 2021
N2 - Continuing failures of financial capitalism across borders have led corporation to develop a more balanced economic growth model of transformational entrepreneurship that emphasises both short-term economic and longer-term social impacts. The model encourages entrepreneurial activities that bring major changes in the related markets and industries, as well as changes in society and culture. At the corporate level, transformational entrepreneurship prepares employees for any potential changes induced by a dynamic environment; it also improves the psychological capital of individual employees, and effective transformational entrepreneurship can eventually accelerate performance. The purpose of this study is to investigate (1) the direct and indirect effects of transformational entrepreneurship on readiness for change, psychological capital and employee performance, and (2) how the effects to readiness for change and psychological capital influence employee performance. The study data were collected using questionnaires completed by employees in 257 branches of a state-owned bank with locations throughout Indonesia. The data were analysed using the structural equation model. The results show that transformational entrepreneurship significantly and positively influences readiness for change, psychological capital, and employee performance and that readiness for change and psychological capital significantly and positively influences employee performance. Additionally, the effect of transformational entrepreneurship on employee performance is more significant if it is related to psychological capital than to readiness for change or to aspects of employee performance unrelated to transformational entrepreneurship. These findings enrich our understanding of transformational entrepreneurship and its value related to the direct and indirect effects on variables such as readiness for change, psychological capital and employee performance.
AB - Continuing failures of financial capitalism across borders have led corporation to develop a more balanced economic growth model of transformational entrepreneurship that emphasises both short-term economic and longer-term social impacts. The model encourages entrepreneurial activities that bring major changes in the related markets and industries, as well as changes in society and culture. At the corporate level, transformational entrepreneurship prepares employees for any potential changes induced by a dynamic environment; it also improves the psychological capital of individual employees, and effective transformational entrepreneurship can eventually accelerate performance. The purpose of this study is to investigate (1) the direct and indirect effects of transformational entrepreneurship on readiness for change, psychological capital and employee performance, and (2) how the effects to readiness for change and psychological capital influence employee performance. The study data were collected using questionnaires completed by employees in 257 branches of a state-owned bank with locations throughout Indonesia. The data were analysed using the structural equation model. The results show that transformational entrepreneurship significantly and positively influences readiness for change, psychological capital, and employee performance and that readiness for change and psychological capital significantly and positively influences employee performance. Additionally, the effect of transformational entrepreneurship on employee performance is more significant if it is related to psychological capital than to readiness for change or to aspects of employee performance unrelated to transformational entrepreneurship. These findings enrich our understanding of transformational entrepreneurship and its value related to the direct and indirect effects on variables such as readiness for change, psychological capital and employee performance.
KW - Banking industry
KW - Employee performance
KW - Psychological capital
KW - Readiness to change
KW - Structural equation model
KW - Transformational entrepreneurship
UR - http://www.scopus.com/inward/record.url?scp=85119111756&partnerID=8YFLogxK
U2 - 10.12688/f1000research.52480.1
DO - 10.12688/f1000research.52480.1
M3 - Article
AN - SCOPUS:85119111756
SN - 2046-1402
VL - 10
JO - F1000Research
JF - F1000Research
M1 - 887
ER -
