Impact of transformational leadership and transparent communication on employee openness to change: mediating role of employee organization trust and moderated role of change-related self-efficacy

Abstract

PurposeThis study investigates the impact of transformational leadership and transparent communication on employees' openness to change with the mediating role of employee organization trust and moderating effects of change-related self-efficacy.Design/methodology/approachA sample of 260 employees from banking sector of Pakistan through self-administrated questionnaire participated in this study and the data was analysed through partial least square structural equation modelling (PLS-SEM).FindingsThe results reveal that transformational leadership and transparent communication help to create trust among employees of the organization which ultimately have positive effects on employee openness to change. Further, the results suggest that the presence of change-related self-efficacy significantly moderates relation between the transformational leadership and employee openness to change. However, change self-efficacy does not change the relationship between transparent communication and employee openness to change.Research limitations/implicationsThis study contributes to change management literature and helps organizations to understand the importance of employees and their positive behaviour during change.Practical implicationsThe researcher provides the guidelines for employers to craft change communication policy during the change implementation phase.Originality/valueThis study tests a mediating role of employee organization trust and moderating role of change-related self-efficacy in relation with transformational leadership and transparent communication on employees' openness to change which had not been tested theoretically and empirically in the context of Pakistan.