Transformational Leadership, Change Self-Efficacy on Affective Commitment to Change, in Banking versus Insurance Industries

Wustari H. Mangundjaja, Denvi Giovanita

Research output: Contribution to journalArticlepeer-review

Abstract

The pace of globalization and technological development creates changes inevitable to organizations. Financial firms are one of the fast-changing and vulnerable sectors of organizational change. Previous studies showed that both leader and people are important to the success of organizational change. The objective of this study is to identify and compare the effect of transformational leadership and employees' change self-efficacy on affective commitment to change both in banking and insurance industries, as well as comparing the results from two different types of organizations. Respondents consisted of 207 employees from banking and insurance industries. Data were analysed using multiple hierarchical regressions. The result showed that change self-efficacy have a positive and significant impact on affective commitment to change in both industries. However, the positive and significant impact of transformational leadership was only found in the insurance industry but not in the banking industry. The implication of the study can be used for practitioners to enhance the success of organizational change through developing change self-efficacy on the employees as well as transformational leadership on the leaders in order to create a high affective commitment to change.
Original languageEnglish
Pages (from-to)497-499
JournalAdvance Science Letters
Volume24
Issue number1
DOIs
Publication statusPublished - 1 Jan 2018

Keywords

  • Affective Commitment to Change; Change Self-Efficacy; Organizational Change; Transformational Leadership

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