Inferring causal relations among key change management variables: a structural equation modelling approach

Abstract

The study measures a causal model establishing relationship among five variables, namely, leadership, communication, culture, training and motivation that impact the efficacy of the change management programme (CMP) in any organisation. In the proposed model, leadership is hypothesised as the independent, motivation as the dependent and communication, culture and training as the mediating variables. Structural equation modelling (SEM) approach is used to test the model. The study contributes to the change management literature in two main ways. The first is the formulation of a causal model among the variables that have been hitherto studied in isolation, albeit extensively, and the second is researching the impact of these variables, studied mostly for the developed western countries, in the context of an emerging economy like India. The results indicate that leadership has both, a direct positive impact on motivation as well as an indirect impact through communication, culture and training. Further, this impact is moderated by the effect of gender and sector of employment.